FuturePriceProposal

Slide1: 

Shaping a More Efficient Future Price Change Proposal

Slide2: 

Why Change Prices Costs going up Changes in operations and the market First price restructuring proposed since 2001 Prices track CPI over time

Slide3: 

High-Level Goals Growth Efficiency Cost coverage Addressing Positioning for the future

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High-Level Initiatives Shape-based pricing Less emphasis on weight Incentives Containers Drop shipping Sorting Packaging More choices Forever Stamp Low-cost Address Change Service

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Agenda Review full product line Strategy Significant changes Specific examples Timeline to 2007 Questions

Slide6: 

First-Class Mail Strategy Shape-based pricing schedules Letters Flats Parcels 2-ounce letter 63¢ 2-ounce flat 63¢ 2-ounce parcel 63¢

Slide7: 

First-Class Mail Strategy Shape-based pricing schedules Letters Flats Parcels De-emphasize weight 2-ounce letter 63¢ ►62¢ 2-ounce flat 63¢ ►82¢ 2-ounce parcel 63¢ ►$1.20

Slide8: 

First-Class Mail Significant Changes Forever Stamp Convenient 1-ounce single-piece price Good forever Single-piece 39¢ ►42¢ Postcards 24¢ ►27¢

Slide9: 

First-Class Mail Significant Changes Additional ounce 24¢ ►20¢ Letters over 1 ounce go down Flats over 6 ounces go down Similar pattern for workshare Automation letters 23.7¢ ►15.5¢ Presorted letters, flats, and parcels 23.7¢ ►20¢

Slide10: 

First-Class Mail Significant Changes Discontinue heavy piece discount Discontinue carrier route rates New Presorted Parcel category Presorted Parcels rate tiers

Slide11: 

First-Class Mail Significant Changes Presorted Letters Machinable rate tiers Current Proposed Nonmachinable rate tiers Current Proposed

Slide12: 

First-Class Mail Examples Letters Flats Parcels

Slide13: 

First-Class Mail Examples + 19¢ + 3¢ + 41¢ - 1¢

Slide14: 

Priority Mail Strategy Cover costs Especially large lightweight items De-emphasize weight for heavier items Continue to increase convenience

Slide15: 

Priority Mail Significant Changes Dimensional weight pricing for Zones 5-8 Lower prices for some heavier items Flat Rate Box becomes permanent

Slide16: 

Priority Mail Examples

Slide17: 

Priority Mail Examples + $8.50 + $4.60

Slide18: 

Express Mail Strategy Low-cost alternative for shipping documents Significant Change New 1-pound price

Slide19: 

Express Mail Examples

Slide20: 

Standard Mail Strategy Align pricing with operations Encourage growth of efficient, effective mail Expand shape-based pricing

Slide21: 

Standard Mail Significant Changes Increase drop ship incentives Create distinct prices for parcels Add “Not Flat-machinable” category

Slide22: 

Standard Mail Significant Changes Discontinue destination delivery unit rate for letters Differentiate prices for detached address labels (DALs) Add more presort options

Slide23: 

Standard Mail Significant Changes Nonmachinable surcharge factored into prices Nonautomation Letters Machinable rate tiers Current Proposed Nonmachinable rate tiers Current Proposed

Slide24: 

Standard Mail Significant Changes Flats Automation rate tiers Current Proposed Nonautomation rate tiers Current Proposed

Slide25: 

Standard Mail Significant Changes Parcels Machinable rate tiers Current Proposed Nonmachinable rate tiers Current Proposed

Slide26: 

Standard Mail Significant Changes Not-Flat Machinable Proposed rate tiers

Slide27: 

Standard Mail Examples

Slide28: 

Standard Mail Examples +47.7¢ +27.7¢ +8.6¢ - 5.2¢ +21.6¢ +1.6¢

Slide29: 

Periodicals Strategy Encourage efficiency Containers Drop ship Simplify copalletization rules

Slide30: 

Periodicals Significant Changes New 85¢ container rate Enhanced drop ship incentives Particularly for high-editorial content

Slide31: 

Periodicals Examples

Slide32: 

Periodicals Examples + 4.7¢ + 2.7¢ - 2.2¢

Slide33: 

Package Services Strategy More efficiency Streamline product offering

Slide34: 

Package Services Significant Changes Lower increases for DDU and DSCF entry Require barcodes Parcel Select items Discontinue retail Bound Printed Matter

Slide35: 

Package Services Examples

Slide36: 

Special Services Strategy Improve address quality Modernize services

Slide37: 

Special Services Significant Changes New low-cost One Code Address Change Service for letters Redesign Confirm service Redesign Insurance Reduced electronic Return Receipt fee Continue to realign Post Office Box fees

Slide38: 

Special Services Examples

Slide39: 

Special Services Examples

Slide40: 

Special Services Examples

Slide41: 

Special Services Examples

Slide42: 

Timeline 2006 2007 May Jun July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Governors Decision (March/April) Implementation (May/June) PRC Recommendation (Early March) Litigation (May through March 2007) Filing Date (May 3, 2006) 10 Months 1 Year

Slide43: 

Communicating USPS.com/ratecase DMM Advisory Mailers Companion Implementation Teams Federal Register Proposed Rule dmmadvisory@usps.com usps.com/mailerscompanion gpoaccess.gov

Slide44: 

Thank You Questions?