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TRANSCRIPT
2 Proprietary Information. Copyright 2007 Hasler, Inc. All Rights Reserved
Overview
• On May 14, 2007, the United States Postal Service intends to implement a rate change and introduce a dramatic new way of determining the correct postage rate, called Shape-Based Pricing.
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Not A Normal Rate Change
Currently based on: – Weight
Will be based on: – Length– Height– Weight– Thickness
The USPS is not just changing the rates, but changing the classification structure as well!
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2-ounce letter63¢
2-ounce flat
63¢ 2-ounce parcel
63¢ ►58¢ ►97¢ ► $1.30
-7.9% +54.0%+106.3%
Postage will no longer be based solely on weight!
SBP Pricing Example
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Shape Based Mail Formats
Letter Flat (Large Letter)
Parcel
First Class
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Each Add. Oz. . .24¢
Each Add. Oz. .17¢
* Oversize surcharge of .13¢ for flats weighing 1 oz. or less, or letters that have non-machinable characteristics
* Oversize surcharge eliminated.
Current Rates May 14, 2007 Rates
1st Class Rates at a Glance
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Mail Processing Flowchart (First Class Example)
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Pay Attention To Shape
• Review designs of all current and planned mailings to ensure that they are cost effective using SBP requirements. For example:
– A 1 oz. 6” by 6” envelope’s aspect ratio (length divided by height, must be between 1:3 and 2:5) is 1.0, and is subject to the non-machinable surcharge of $0.17 (41 cents vs. 58 cents, a 41% increase).
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Fold and Save
• Unfolded pages inserted into flats will typically cost more.
– Reduce large envelopes when possible– Consider 6 X 9 envelopes or #10s.– Possible savings up to .56 per piece– Difference of .6 oz. between #10/Flat– Folding saves postage.
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Fold and Save
• Flatten and Save too!• Consider flats when smaller envelopes exceed ¾”• Possible savings up to .33 per piece
¾”+Less than ¾”
2oz.= $1.30
3oz. = $1.47
2oz.=$0.97
3oz. = $1.14
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Minimize Costly Flats
6 x 9.5”
+ = $0.80
2 Pages
Folded in ½ + = $0.41
9” x 12” Flat 2 Pages
49% Savings!
Thin Flat Reconfiguration Example:
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Think Thin
6” x 9.5”
+ = $0.97 - Flat Rate
9 Pages ½ Folded + = $0.58 - Letter Rate
6 Pages
40% Savings!
Thin Flat Reconfiguration Example:
#10 Envelope
6 Pages6 Pages6 Pages6 Pages
6 Pages9 Pages
Of 20lb. –
Over ¼”
6 Pages6 Pages9 Pages
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Top 10 Strategies to Survive Shape Based Pricing
Summary•Size Matters!!!
•Convert flats to 6 X 9s or #10s
•Be aware of and change/convert thick items when possible
•Guessing only leads to over/under posting, both of which mean wasted $