1. Price Change 2017
January 2017

2. Price Change
Overview Market Dominant
First-Class Mail®
USPS Marketing Mail®
Periodicals®
Package Services
Extra Services
Promotions
Informed Delivery
Competitive Price Change

3. Total average increase of ~0.871%* on Market Dominant products
The Price Cap
CPI: %
Based on Consumer Price Index
PRC formula uses a moving average of CPI data*
All classes had varying degrees of banked authority**
*Note: Cap authority is cumulative for the entire period when it has been more than 12 months since the last price change
**Note: First-Class and USPS Marketing Mail have less CPI Cap due to promotions filings, Retail Parcels 0–3 ounce price increase in August, and First Class Mail International Inbound UPU rates.

4. Share Key Concepts with MTAC Jul 12 - 13
Key Activity
Date
Share Key Concepts with MTAC
Jul
Share Technical Changes and Draft Postage Statements with Developers
Aug 11
Share Draft Mailing Standards with Industry
File Market Dominant Prices with PRC
File Competitive Prices with PRC
Oct 12
Oct 19
PRC Approved Market Dominant Prices (except Special Services)
PRC Approved Competitive Prices
Nov 15
Nov 18
Publish Final Prices and Standards
Dec 9
Implementation of New CPI Prices
Jan 22
Responded to industry feedback to share changes earlier in process
*Note: Move Update filings are TBD
DISCUSSION DRAFT

5. Full Service IMb Incentives Remain in Place
First-Class Mail $0.003
Marketing Mail $0.001
Periodicals $0.001
BPM Flats $0.001
Full Service incentives remain in place

6. First-Class Mail ~0.8% overall increase
First-Class stamp price moves to 49 cents
Product
CPI Percent Change
Single-piece Letters & Cards
2.0%
Single-piece Metered
-1.1%
Flats
1.9%
Parcels
0.6%
Presort Letters & Cards
-0.3%
First-Class Mail International*
(includes letters, cards, and flats)
0.0%
FC Single Piece – back to exigent price
Metered Mail – three cent gap between Single Piece and Metered price
Flats – two times the price of Single Piece which allows consumers to apply two stamps
International Inbound prices set by UPU
* Does not include International Inbound 6

7. Key First-Class Mail Single-Piece Prices
Current
Price
New
Percent
Change
Stamp Price 1 Oz.
0.47
0.49
4.3%
Single Piece Additional Ounce
0.21
0.0%
Meter Price 1 Oz.
0.465
0.46
-0.1%
Single-Piece Flats 1 Oz.
0.94
0.98
Single-Piece Cards
0.34
Retail Parcels 0-4 ozs.
2.62
2.67
1.9%
Retail Parcels – raised by five cents

8. Key First-Class Mail Bulk Prices
Current
Price
New
Percent
Change
Mixed AADC Automation Letters
0.419
0.423
1.0%
AADC Automation Letters
0.399
0.403
5-Digit Automation Letters
0.376
0.373
-0.8%
5-D Automation, discount expanded from 2.3 to 3.0 cents, pass through is now 84%
* Note: AADC to 5D Discount expanded from 2.3 cents to 3.0 cents, now an 84% pass-through.

9. First-Class Mail International
No increase at this time
Product
CPI Percent Change
Letters
0.0%
Flats
Cards
No changes to internal outbound
* Note: First-Class Mail International Global Forever Stamp remain $1.15 9

10. Market Dominant Classification Changes
First-Class
Eliminate 3-Digit Automation Letters for First-Class Presort
Prices have been the same since 2012
Combines the 3 Digit (L003) and AADC (L801) into the L801 AADC sortation
3 & 3.5 Ounces free for First-Class Commercial Letters
One price for all commercial letters up to 3.5 ounces
Provides the ability to add content to bills and statements
Alternate Postage rebranded as Share Mail
One price tier
Marketing agreements no longer required
Both static and serialized  IMb’s allowed
Included in 2017 Earned Value promotion. 
For Simplification Purposes the USPS is combining 3 digit and automated area distribution center (AADC) presorts into “AADC” presort level for commercial First-Class Mail Letters and Cards and Standard Mail letters. Mail preparation changes will include combining 3 Digit (L003) and AADC (L801) into the L801 AADC sortation and removing the L003 labeling list. This change is applicable to Standard Mail (Regular and Nonprofit) Automation letters, First-Class Mail Automation Postcards, Automation letters and Roundtrip DVD, CD, or Other Disc Mail Automation letters.
The USPS is creating one price for commercial letters up to 3.5 ounces. This includes First- Class Mail (FCM) Residual letters. This list includes First-Class Machinable Ltrs. Standard Machinable, Automated and Carrier Rt. Automated Ltrs. This proposal does not include single-piece First-Class Mail retail letters.
Renaming Alternate Postage to Share Mail. This product is limited to letters and postcards and prefunding is no longer necessary with the Share Mail product.
Share Mail customers who wish to participate must provide a pre-approved mailpiece with a FIM E (Facing Identification Mark E pattern), Indicia and IMb. The USPS is removing the prefunding pricing tiers for Share Mail and instead will have one price for letters ($0.57) and one price for postcards ($0.42) which will be charged post processing.
The customer pays for 100% of postage based on the number of IMb scans received to determine piece count. Automated invoicing process will deducts the funds from the mailers CAPS account.
Picture Imprint Will No longer be authorized for Share Mail
IMBA will automatically send transactions to PostalOne!

11. Market Dominant Classification Changes Continued
Update Weight Limit for Piece Pricing For Standard Mail Non Auto Letters and Flats
Increase Marketing Non Auto & Non Machinable Ltrs. and Mail flats piece price weight break from 3.3 to 4.0 ozs.
Allows mailers to add weight in order to add value to mail piece
Piece/price pound prices will apply to pieces four ounces and greater.
Standard Mail name to change to USPS Marketing Mail
Named to influence marketers who are not in the mail
Identifies majority of the volume in the class
18 month transition
The indicia on the mail pieces should continue to display current Standard Mail abbreviations until notified by the USPS
The USPS is changing the weight for piece pound pricing from 3.3 oz. to 4.0 oz. Piece/price pound prices will apply to pieces four ounces and greater for Non-Automated Ltrs. Non-Machinable Ltrs. and Flats
The USPS is changing the product name of Standard Mail to USPS Marketing Mail. All postage forms and reports will be updated to reflect the name change in Jan
Note: The indicia on the mailpieces should continue to display current standard mail abbreviations until notified by the USPS. New Indicia and/or postage markings should not be used for letter or flat mailings until Jan at the earliest. Tray Label and Pallet markings are deferred until Mid 2017 at the earliest.
There will be changes to the Postage Statements. The following Postage Statements will be updated: PS Form 3602-C, PS Form 3602-EZ, PS Form 3602-N, PS Form 3602-NR, and PS Form 3602-R.
There will be no changes to the Shipping Services File.
There will be no changes to Mail.dat and Mail.XML.
This will take place over a 18 month time frame, mailers will be notified of when additional changes and timelines are put in place.

12. USPS Marketing Mail ~0.9% overall increase Product CPI Percent Change
Letters
2.0%
Flats
2.5%
Carrier Route Letters, Flats, and Parcels
-3.0%
High Density / Saturation Letters
2.2%
High Density / Saturation Flats and Parcels
-2.0%
Parcels
1.6%
EDDM-Retail
0.6% 12

13. Key USPS Marketing Mail Commercial Origin Prices
Current
Price
New
Percent
Change
Letters
(5-Digit Auto entered at Origin)
0.255
0.251
-1.6%
Flats
(5-Digit Auto Flat entered at Origin)
0.376
0.387
2.9%
Carrier Route
(Flat entered at Origin)
0.288
0.290
0.7%
High Density/Saturation Letters
(Saturation Letter entered at Origin)
0.194
0.186
-4.1%
High Density/Saturation Flats
(Saturation Flat entered at Origin)
0.205
0.218
6.3%
EDDM-Retail
0.176
0.177
0.6%
Changes in origin prices to help pass through 13 13

14. Marketing Mail Automation Commercial Letters Prices
Marketing Mail Auto Letters
Current
Price
New
$ Difference
% Difference
Mixed Origin
$0.291
$0.288
-$0.003
-1.0%
5-Digit Origin
$0.255
$0.251
-$0.004
-1.6%
5-Digit DNDC
$0.220
$0.225
$0.005
2.2%
5-Digit DSCF
$0.211
$0.217
$0.006
2.8%
HD DSCF
$0.164
$0.168
$0.004
2.4%
Saturation Origin
$0.194
$0.186
-$0.008
-4.1%
Saturation DNDC
$0.162
$0.000
-0.0%
Saturation DSCF
$0.151
$0.155
$0.035
$0.026
$0.009
$0.008
Narrow gap between 5-D and Saturation DNDC and DSCF
$0.032
$0.024
$0.011
$0.007

15. Marketing Mail Piece-Rate Commercial Flats Prices
Auto Flats
Current
Price
New Price
$ Difference
% Difference
5-Digit DSCF in FSS
$0.288
$0.335
$0.047
16.3%
4.2%
5-Digit DSCF not in FSS
$0.333
$0.002
0.6%
C-R Basic DSCF in FSS
$0.252
-$0.036
-12.5%
0.2%
C-R Basic DSCF not in FSS
$0.245
$0.007
2.9%
Pure C-R DSCF not in FSS
$0.240
$0.232
-$0.008
-3.3%
Pure C-R DDU not in FSS
$0.233
$0.221
-$0.012
-5.2%
HD DSCF (125 pieces)
$0.192
$0.194
1.0%
HD+ DSCF (300 pieces)
$0.187
$0.174
-$0.013
-7.0%
Saturation DSCF (90%)
$0.162
$0.164
1.2%
Saturation DDU (90%)
$0.153
$0.155
1.3%
$0.088
$0.083
$0.005
$0.020
Elimination of FSS prices – Mail will pay prices for which it qualifies, qualify for CR pay CR, qualify for 5-D pay 5-D and so on
Pure CR pallets – incentive to create direct pallets to avoid bundle sorting
HD DSCF – fix rate anomaly – some pound rated flats cheaper than piece prices.
$0.007
$0.011

16. Marketing Mail Pound Rate Commercial Flats Prices- 8 oz.
Auto Flats
Current
Price
New Price $
Difference %
5-Digit DSCF in FSS
$0.451
$0.508
$0.057
3.7%
5-Digit DSCF not in FSS
$0.496
$0.012
C-R Basic DSCF in FSS
$0.394
-$0.057
-1.5%
C-R Basic DSCF not in FSS
$0.391
$0.003
Pure C-R DSCF not in FSS
$0.386
$0.374
-$0.012
-6.7%
Pure C-R DDU not in FSS
$0.365
$0.352
-$0.013
-7.4%
HD DSCF
$0.311
$0.294
-$0.017
-5.5%
HD+ DSCF
$0.287
$0.274
-4.5%
Saturation DSCF
$0.281
$0.264
-6.0%
Saturation DDU
$0.260
$0.246
-$0.014
-5.4%
Encourage more weight in in 3.3 to 4. ounces

17. Detached Address Labels (DALs)
Marketing Mail
Detached Address Labels (DALs)
Price remains the same at 3.5 cents

18. Key USPS Marketing Mail Nonprofit Origin Prices
Current
Price
New
Percent
Change
Letters
(5-Digit Auto entered at Origin)
0.140
0.134
-4.3%
Flats
(5-Digit Auto Flat entered at Origin)
0.237
0.244
3.0%
Carrier Route
(Flat entered at Origin)
0.214
0.209
-2.3%
High Density/Saturation Letters
(Saturation Letter entered at Origin)
0.120
0.111
-7.5%
High Density/Saturation Flats
(Saturation Flat entered at Origin)
0.131
0.136
3.8% 18 18

19. Market Dominant Classification Changes
Marketing Mail
FSS Marketing Mail reverts to previous structure
Reverts to structure in place prior to January 2014
Carrier Route Pieces pay Carrier Route prices etc.
Prices not based on equipment used to sort – label list determine bundle and pallet makeup
Allows Operations flexibility to add or remove ZIPS without impacting prices
Encourage more Carrier Route Bundles on 5-Digit Pallets in non-FSS zones
Wider incentives to prepare more direct pallets of CR volume
Wider incentives to enter those pallets at DDU
Note: Pieces prepared in FSS Scheme bundles, placed on FSS Scheme pallets and entered at an FSS location will be eligible for DSCF prices.
The USPS is eliminating the Flats Sequencing System (FSS) pricing cells from price tables and postage statements. Postage prices for flats will be driven through virtual sortation levels at 3 digit and 5 digit, for both barcoded and non-barcoded and Carrier Route (CR) (BPM only) CR Basic, CR High Density Plus (Std M only), CR High Density, and Saturation (Periodicals only) prices. USPS will manage FSS mail preparation through existing mailing standards and labeling lists as outlined in Domestic Mail Manual (DMM) sections 705 and 708. Every piece in an FSS bundle must be properly marked (OEL) to determine price and class eligibility.
FSS Scheme bundle prep:
• There are no changes to current FSS bundle prep rules. All presorted and basic carrier route Standard Mail, presorted and carrier route Bound Printed Matter (BPM), and Periodicals flats must be sorted to FSS schemes.
FSS per Piece Price:
• There will be changes to FSS per Piece Prices. FSS Scheme per piece price cells will be eliminated. Per piece prices will be determined by piece pre-sort prior to placing in an FSS Scheme bundle.
FSS Scheme pallet prep:
• There will be no changes to current FSS Scheme pallet prep rules. An FSS scheme pallet, or approved alternate container, must be made when 250 pounds or more of bundles are available for an individual FSS scheme.
FSS Scheme pallet/Destination prices:
• There will be changes to FSS Scheme pallet destination prices. DFSS price cells will be eliminated. Destination per piece prices will now be determined by entry location (DNDC, DSCF).
Note: Pieces prepared in FSS Scheme bundles, placed on FSS Scheme pallets and entered at an FSS location will be eligible for DSCF prices.
FSS Facility pallet prep:
• There will be no changes to current FSS Facility pallet prep rules. Permitted only for FSS Scheme Bundles prepared for FSS Scheme Bundles prepared for FSS sort plans processed within the same facility. (L006)
FSS Facility pallet/Destination prices:
• There will be changes to FSS Facility pallet destination prices. DFSS price cells will be eliminated. Destination per piece prices will now be determined by entry location (DNDC, DSCF).
Note: Pieces prepared in FSS Scheme bundles, placed on FSS Facility pallets and entered at an FSS location will be eligible for DSCF prices.

20. CPI Percent Periodicals Change Outside County 0.8% Inside County 1.0%
On average, large circulation publications will pay 0.5 to 3 percent less in postage due to this price change.
On average, heavier weight mailers will also see their postage decline around 0.5 percent to 1 percent.
On average, large Nonprofits mailers will see changes in their prices from 0.9 percent increases to declines of 3.3 percent.
On average, smaller, low circulation publications (less than 150 thousand per issue) will see above average increases due to small circulation and lighter weight pieces.
About the same increase for Outside and Inside County

21. Market Dominant Classification Changes
Periodicals
FSS pricing structure for Periodicals reverts to previous structure
Reverts to structure in place prior to January 2014
Carrier Route Pieces pay Carrier Route prices etc.
Prices not based on equipment used to sort – label list determine bundle and pallet makeup
Allows Operations flexibility to add or remove ZIPS without impacting prices
FSS Bundle Prices for Periodicals:
• There will be changes to FSS Bundle prices for Periodicals. FSS price cells for Periodical bundle charges will be eliminated. FSS Scheme bundles placed on FSS Scheme pallets will pay bundle level Carrier Route prices. FSS Scheme bundles placed on FSS Facility pallets will pay bundle level 3-Digit/SCF prices.
FSS Sack and Tray Prices for Periodicals:
• There will be changes to FSS Sack and Tray prices for Periodicals. FSS price cells for Periodical sack and tray prices will be eliminated. Sacks and trays prepared as FSS Scheme or FSS Facility sacks and trays will pay 3-Digit/SCF tray/sack prices. Entry sack and tray prices for Periodicals will be determined by entry location (DSCF, DADC, DNDC, and Origin).
FSS Pallet prices for Periodicals:
• There will be changes to FSS pallet prices for Periodicals. FSS price cells for Periodical pallet prices will be eliminated. Periodical FSS Scheme containers will pay the Carrier Route pallet price. Periodical FSS Facility pallets will pay 3-Digit/SCF pallet prices. Entry pallet prices will be determined by entry location (DSCF, DADC, DNDC, and Origin).

22. Market Dominant Classification Changes
Marketing Mail
Eliminate 3-Digit Automation Letters presort level for Standard Mail Presort
Prices have been the same since 2012
Combines the 3 Digit (L003) and AADC (L801) into the L801 AADC sortation
Simplify Marketing Automation Letters by eliminating the per pound rate between 3.3 and 3.5 ounces
Simplifies Marketing Mail Letters
Increase Marketing Mail flats piece price weight break from 3.3 to 4.0 ozs.
Allows mailers to add weight in order to add value to mail piece
Piece/price pound prices will apply to pieces four ounces and greater.

23. Package Services ~1.0% overall increase Product CPI Percent Change
Media Mail/Library Mail
1.1%
Alaska Bypass
Bound Printed Matter
Flats
0.8%
Parcels
1.0%
Increase very close to 1% 23

24. Market Dominant Classification Changes
Package Services
FSS Bound Printed Matter reverts to structure in place in 2014
Carrier Route and Presorted
FSS prep continues to be required
Standard Mail Parcels will have a Simplified Pricing Structure Saturation and Carrier Route Parcels (Simple Samples)
Reduce from 6 Volume Pricing Tiers down to 2
Volumes up to and equal to 200,000 pieces
Volumes greater than 200,000 pieces

25. Extra Services ~2.5% overall increase Product CPI Percent Change
PO Boxes™
6.7%
Certified Mail®
1.5%
Return Receipt
2.9%
Registered Mail™
0.0%
Insurance
0.5%
COD
2.5%
All Other
Free Del Con freed up cap authority 25

26. Market Dominant Classification Changes
Special Services – Simplification of Shipping Product Permits
Combine Permit for Outbound/Return Shipping Products
New Permit - Shipping Products Permit
Eliminate fees for Inbound/Outbound Commercial Competitive Shipping Products
Priority Mail Express, Priority Mail, First-Class Package Service, Parcel Select, Parcel Select Lightweight, Library Mail, Media Mail, and Bound Printed Matter (parcels).
If you use Merchandise Return (MR) and Business Reply Mail (BRM) permits to receive parcels through USPS Returns products you will no longer have to pay the applicable annual permit fees for: Merchandise Return Service, Business Reply Mail (Parcels only), USPS Returns (Scan Based Payment), and Parcel Return Service.
Redesign COD to provide only Hold-for-Pickup delivery
Effective January 22, 2017, the Postal Service will eliminate permit imprint application fees and annual mailing fees for certain parcel products and mail classes. The Postal Service will introduce a new permit called the “Shipping Products Permit” that is designed to provide mailers the option of utilizing one permit for both outbound and return products. These changes are designed to help simplify the shipping experience for parcel customers
If you use a permit imprint (PI) to ship parcels, you will no longer have to pay the applicable permit imprint application fees, annual presort or destination entry fees if the permit imprint permit is exclusively used for shipping parcels using one, some, or all of the following products: Priority Mail Express, Priority Mail, First-Class Package Service, Parcel Select, Parcel Select Lightweight, Library Mail, Media Mail, and Bound Printed Matter (parcels).
If you use Merchandise Return (MR) and Business Reply Mail (BRM) permits to receive parcels through USPS Returns products you will no longer have to pay the applicable annual permit fees for: Merchandise Return Service, Business Reply Mail (Parcels only), USPS Returns (Scan Based Payment), and Parcel Return Service.

27. Emerging and Advanced Technology/Video In Print
Calendar 2016
JAN
FEB
MARCH
APRIL MAY JUNE
JULY AUG SEPT
OCT NOV DEC
FIRST-CLASS MAIL®
Earned Value
Registration
February 15 –March 31
ENDED
Promotion Period (3 months)
April 1 – June 30
Personalized Color Transpromo
Registration
May 15 - December 31
Promotion Period (6 months)
July 1 – December 31
STANDARD MAIL® AND FIRST-CLASS MAIL
Emerging and Advanced Technology/Video In Print
Registration
January 15 – August 31
Promotion Period (6 months)
March 1 – August 31
ENDED
STANDARD MAIL
Tactile, Sensory & Interactive Mailpiece Engagement
Registration
January 15 – August 31
ENDED
Promotion Period (6 months)
March 1 – August 31
Mobile Shopping
Registration
May 15 – Dec 31
Promotion Period (6 months)
July 1 – December 31

28. Emerging & Advanced Technology
Calendar 2017
PRC approved as of June 16, 2016
NOV – DEC 2016
JAN – FEB - MARCH
APRIL – MAY - JUNE
JULY – AUG - SEPT
OCT – NOV - DEC
FIRST-CLASS MAIL
Earned Value
Registration
Nov 15 -
Dec 31, 2016
Promotion Period (6 months)
January 1 – June 30
Color Transpromo
*Registration closes Dec. 31, 2016
Registration
May 15 - Dec 31
Promotion Period (6 months)
July 1 – December 31
MARKETING AND FIRST-CLASS MAIL
Emerging & Advanced Technology
Registration
Jan 15 – Aug 31
Promotion Period (6 months)
March 1 – August 31
MARKETING MAIL
Tactile, Sensory & Interactive Engagement
Registration
Dec 15 – July 31
Promotion Period (6 months)
February 1 – July 31
Direct Mail Starter
Registration
March 15 – July 31
Promotion Period (3 months)
May 1 – July 31
Mobile Shopping
Registration
June 15 – Dec 31
Promotion Period (5 months)
August 1 – December 31)

29. 2017 Promotions Earned Value (First Class Mail)
5 cents per piece credit for all Business Reply Mail or Courtesy Reply
Mail pieces received. Alternate Postage aka Share Mail also
included in this year’s promotion
Color Transpromo (First Class Mail)
A 2% discount provided for mail that uses variable color printing and personalized color messaging on bills and statements (New participants only need to meet the color criteria)
Tactile, Sensory & Interactive Mailpiece Engagement (Marketing Mail)
Receive a 2% discount when using specialty inks, sensory elements, textural papers, and or other dimensional interactive elements on the mailpiece
Review Program Requirements documents for complete participation instruction.

30. 2017 Promotions Emerging & Advance Technology (1C & Marketing Mail)
Get a 2% discount on mailpieces that use Near Field Communication (NFC), “enhanced” Augmented Reality, Video in Print & Beacon technology. Also, new this year, Virtual Reality, Digital to Direct Mail & other developing technologies may also qualify!
Direct Mail Starter – NEW (Marketing Mail)
This promotion offers a 5% discount to new mailers on up to 10,000 mailpieces that include , at a minimum a QR Code that leads to a mobile optimized website
New - Mobile Shopping (Marketing Mail)
Receive a 2% discount on Standard Mail mailpieces with a barcode or other mobile-enabled technology that leads to a mobile-optimized shopping website
Review Program Requirements documents for complete participation instruction.

31. Parcel Select Heavyweight 3.5%* Parcel Select Lightweight (PSLW) 8.0%
Competitive Prices
January
2017
Products
% Change
Competitive
Priority Mail
3.9%
Priority Mail Express
3.3%
Parcel Select Heavyweight
3.5%*
Parcel Select Lightweight (PSLW)
8.0%
First-Class Package Service (FCPS)
4.1%
Retail Ground
3.8%
Parcel Return Service (PRS)
5.5%
International
0.1%
For destination entry only categories, the average increase is 4.9%
Introduced Half and full tray flat-rate pricing for Premium Forwarding Service

32. Informed Delivery New USPS Service
Provides Images of Daily Mail Before it is Delivered to Mailbox
Sign Up Online:
No Associated Cost
Mailers Can Participate

33. Resources
Online
Postal Explorer® ─ pe.usps.com
Current and new prices
Including downloadable price files in excel and CSV formats
Federal Register notices
Domestic Mail Manual & International Mail Manual
DMM® Advisory ─ posted on Postal Explorer, also special updates

34. Questions?