Practical Guide to USPS Prices -- January 2010

1 A Practical Guide toUSPS PricesWays to apply the newprices to your TO SAVEQ uick OverviewFirst-Class Mail StrategiesStandard Mail StrategiesPriority Mail , Express Mail and Package Services StrategiesExtra Services StrategiesRates effective 1/4/2010A Practical Guide TO usps Prices Law provides for regular and predictable price 1971, whenever the Postal Service wanted to revise pricing they neededto file a rate case a complex proceeding that involved long lead times andseveral regulatory reviews. With no pre-set limits on what could change, mailerssometimes faced significant increases and new sets of all changed with the passing of the Postal Accountability and EnhancementAct. Under the current rules, price increases for most services (see sidebar) arenow limited to the rate of inflation, as measured by the Consumer Price Postal Service no longer needs to file a rate case , instead they must publishnew pricing at least 45 days in advance.

2 There is still regulatory oversight, and thePostal Regulatory Commission provides the public with 20 days to comment onwhether the proposed pricing is consistent with statutory for Regular and Predictable Price ChangesBy law, the usps is required to maintain a schedule for future price increases. Thisschedule is posted on the Postal Regulatory Commission website, ThePostal Service expects to implement price changes for all of the market-dominantclasses in mid-May of each Postal Service expects that all of the market-dominant classes will experience aprice increase each year equal, on average, to the applicable price cap limitation. InSeptember 2009, the Price Cap for market-dominant products was less than than wait for the year-end numbers, the usps announced in October 2009that there would be no 2010 price increase for market dominant products includingFirst-Class Mail , Standard Mail , periodicals and single-piece Parcel Post.

3 Newprices for competitive products (also known as Shipping Services) will take effectJanuary 4, Bowes: your resource for innovation and savingsAs the world s leading provider of mailstream solutions, we understand the criticalrole mail plays in terms of your marketing, operations and financial this Guide , we ll not only inform you of the key changes we ll show youhow you can work the new rules to your advantage. With dozens of practicalstrategies, you can choose best practices that make the most sense for make it easy, we have organized this tool into distinct sections, so you canexplore the areas that are most pertinent to your needs without getting boggeddown in unnecessary details. And, of course, your Pitney Bowes representative isalways available to answer your questions, and help you customize an approachthat s right-sized for you and your Rules for Different ProductsMARKET-DOMINANT PRODUCTSP rice increase tied to CPI.

4 Minimum 45 days advance notice. First-Class Mail Standard Mail Periodicals Single-Piece Parcel Post Media Mail Bound Printed Matter Library Mail Special Services Single-Piece InternationalCOMPETITIVE PRODUCTSNot tied to CPI, but must cover 15 days advance notice. Priority Mail Express Mail Bulk Parcel Post Bulk InternationalFor more information, please contact Prices for Shipping Services take effect January 4, 2010. There will be nochange in Prices for market dominant products in May 2010. As such, the May 2009prices will remain in BOWES QUICK Guide TO usps PRICESFor more details, including new rate tables, please Mail The shape and formatof your mailpiececontinue to have asignificant impact onyour cost. You can save$ for each letterthat complies with thefull-service IntelligentMail Mail Extra ServicesContinue to earndiscounts forautomation andBMC/SCFD estination $ onletters that complywith full-serviceIntelligent Mail price changeshave beenannounced forthe broad rangeof usps Mail , Express Mail and Package ServicesOther than Flat-Rateenvelopes and boxes,Priority Mail andExpress Mail pricesare based on weightand zone, with savingsavailable when you usequalifying postagepayment methods ormeet volumerequirements.

5 Letter DimensionsFlat Dimensions6 1/8 maximumheight3 1/2 minimumheight12 maximumheight6 1/8 minimum*height11 1/2 maximumlength5 minimumlength15 maxlength11 1/2 minimum*lengththickness: minimum, 1/4 maximum thickness: 3/4 maximum *Flats exceed at least one minimum dimensionPostcard Dimensions4 1/4 maximumheight3 1/2 minimumheight6 maximumlength5 minimumlengththickness: minimum, maximum Single-piece Letter First ounce$ sameSingle-piece Flat First ounce$ sameSingle-piece Parcel First ounce$ sameEach additional ounce$ sameNonmachinable surcharge$ samePresorted Letter First ounce$ samePresorted Flat First ounce$ sameAutomation Letter 5-digit First ounce $ sameAutomation Flat 5-digit First ounce $ samePostcards$ sameMay 09 May 10 Select Rates for First-Class Mail Letter up to ounces AADC (Nonautomation)$ sameFlat up to ounces ADC (Nonautomation)$ sameLetter up to ounces 5-digit (Automation)$ sameFlat up to ounces 5-digit (Automation)$ sameBMC Destination Entry Discount (Piece Rate)$ sameSCF Destination Entry Discount (Piece Rate)

6 $ sameMay 09 May 10 Select Rates for Standard Mail Registered MailTMBase Rate$ sameCertified MailTM$ sameReturn Receipt (paper-based)$ sameElectronic Return Receipt$ sameFirst-Class Address Correction Manual $ sameFirst-Class Address Correction Electronic $ sameMay 09 May 10 Select Rates for Extra ServicesPriority Mail Flat Rate Envelope $ $ Mail Small Flat Rate Box n/a$ Mail Regular Flat Rate Box$ $ Mail Oversized Flat Rate Box $ $ Mail Flat Rate Envelope $ $ Post 1 lb. $ $ Mail 1 lb. Single-Piece $ $ Mail 1 lb. Single-Piece $ $ 09 Jan 10 Select Retail Rates for Priority Mail Express Mail and Package ServicesGO THE EXTRA OUNCEWith no increase in the cost of each additional ounce, youcan offset rising costs by putting more into each and can still send each additional ounce of First-Class Mail at the same low cost,including letters, flats and OpportunitySmart Mailstream PracticesAdditional Ounce $ ounce Letter$ ounce Letter$ ounce Letter$ ounce Letter $ 09 May 10 First-Class Letters Single Piece RatesCompanies who already send a high volume of two- and three-ounce letters willcontinue to save on overall postage expenses as the cost for each additional ounceremains unchanged.

7 Others should consider whether they can increase bottom-lineprofits by adding additional content to existing mail. Use your transactional mail for marketing purposes. You can promoteother products and services by adding inserts, brochures and cross-sellmaterials to statements and invoices. Increase the number of you are already including inserts, it maybe cost effective to add even more. Depending on the size and weight of eachinsert, you may be able to add up to six or more new components per ounce. Combine multiple communications into one envelope. If you are planningto send a notification or reminder to your customers, you could save moneyby combining this communication with another mailing, such as a , if you have customers who currently receive two or more statementseach month, consolidating these into a single envelope (a practice known ashouseholding) can reduce your expenses , with no increase in the additional ounce rate, you can save money bysending fewer, but more valuable, mail pieces.

8 But be careful once you exceed ounce threshold for letter mail, your piece will be classified as a flat, which willincrease your it HappenGoing the extra ounce means more than stuffing envelopes it means adding speedand intelligence to your mailstream. Intelligent the ability to selectively insert allows you to choosewhich customers receive which components, giving you the control and flexibilityyou need to target messages to the right person. You can even print and scan marksthat include specific processing instructions for each mail piece. OMR (OpticalMark Recognition) helps ensure accuracy and mail piece integrity. By automatingand integrating the entire process of mail creation, from document generationthrough folding and inserting, you can gain end-to-end efficiencies.

9 Document seemingly disparate communications requiressome planning, but may be easier than you think. Printstream engineering gives youthe flexibility to modify and combine the print-ready files created by your existingapplications without disrupting your underlying operations or Weights, Lower s no need to sort your mail by weightbefore you apply postage, as today s leading mail systems can automatically weighand rate each mail piece on the fly, so you won t overpay for postage. Pitney Bowes makes it easier for companiesto get more out of each communicationthrough mailstream solutions such as: Automatic Inserting Solutions Document Generation Software Digital Mailing SystemsGoing the extra ounce may make senseif you: Are looking to strengthenrelationships with existingcustomers Mail multiple communications tothe same individual Would like to sell additionalproducts and servicesFor more information, please contact STRATEGIESA Practical Guide FLATS TO FOLDEDBy converting flats into letter-size mail, you can takeadvantage of lower postal retail rate for a one-ounce large envelope (flat) is double the rate for anormal letter.

10 By conforming to letter-size dimensions, you can save $ onevery OpportunitySmart Mailstream Practices1 ounce Flat$ ounce Flat$ ounce Flat$ Ounce $ 09 May 10 First-Class Flats Single Piece RatesLetter DimensionsFlat DimensionsBy having a good understanding of what constitutes a letter vs. a flat, you can takesteps to create mail pieces that are easier for the post office to process. Design mailpieces to meet letter-size dimensional requirements. Whilemany letters are already created to fit inside a standard #10 envelope, youactually have a lot of flexibility to create mailings of different sizes and stillqualify for the lower letter-size rates. Convert flat mail to letter-size mail (up to and including ounces) witha single concept of flats to folded is important if your currentmailings are between one and 22 pages.