1. Manager, Small Business Development & Mail Acceptance
Dallas PCC
January 2017 Price Change
Felicia Carter
Manager, Small Business Development & Mail Acceptance

2. January Release Overview41
Market Dominant & Competitive
Structural, Price & Classification Changes
Impacting 5 Postage Statements:
3600, 3602, 3605, 3541, 3700
Implementation Dates
PostalOne!: January 8, 2017
Price Change: January 22, 2017

3. Agenda At-A-Glance Changes Affecting Multiple Classes
Flats Sequencing System (FSS)
Automated Area Distribution Center
Single price for letters weighing up to 3.5oz
First-Class Mail
Price Change
Alternate Postage renamed to Share Mail
Commercial Letters
Standard Mail
Renamed to USPS Marketing Mail
Standard Mail Flats
Standard Mail Parcels
Other Price Changes
Periodicals and Package Services
Extra Services
Informed Delivery
Promotions & Incentives
Permit Fee Changes
Shipping Products Permit
Full Service Fee Waiver Changes

4. January Release “At-A-Glance”
LOWER
Single-Piece Metered Mail
Some First-Class Mail
Rename Standard Mail to USPS Marketing Mail
Eliminate Flats Sequencing System (FSS) pricing
MAJOR CHANGES
HIGHER
Some Standard Mail Letters, Flats & Parcels
Package Services
Some Special Services
$0.49
First-Class Mail Forever Stamp

5. Flats Sequencing System
Eliminate FSS Pricing
Eliminate FSS pricing for the following mail classes:
Standard Mail
Periodicals
Bound Printed Matter
Eliminate all FSS specific pricing rates for:
DFSS entry
FSS Scheme Pallet/Container
FSS Other Pallet/Container
Mailers will pay appropriate presort category prices
FSS mail preparation requirements will remain the same

6. Flats Sequencing System
Create and incentivize more Carrier Route (CRRT) pallets in Non-FSS Zones
Before
Merged 5-Digit Scheme Pallets
5-Digit Scheme CRRT Pallets
After
5-Digit Scheme CRRT Pallets
Merged 5-Digit Scheme Pallets
Before
Merged 5-Digit Pallets
5-Digit CRRT Pallets
After
5-Digit CRRT Pallets
Merged 5-Digit Pallets

7. Automated Area Distribution Center
Combine 3-Digit & AADC Commercial Letters
AADC (L801)
3-Digit (L003)
AADC (L801)
Applies to:
First-Class Mail Automation Letters and Postcards
Standard Mail Automation Letters
Drop Ship product file and Mail Direction files will be made available at the FAST application under the Resources link c

8. First-Class & Standard Mail Letters
Increase max weight from 3.3oz to 3.5oz
Increase First Class Machinable Presorted Letters max weight from “3.3 oz. or less” to “3.5 oz. or less”
Increase Standard Mail Letters max weight from “3.3 oz. or less” to “3.5 oz. or less”

9. First-Class Mail Price Changes
First-Class Mail One Ounce Letter
Product
Price
Current
New
Single Piece First-Class Stamp
$0.47
$0.49
Metered Mail
$0.465
$0.46
Automation Presort
Mixed AADC
$0.419
$0.423
AADC
$0.399
$0.403
5-Digit
$0.376
$0.373
* AADC to 5-digit discount expanded from $02.3 to $0.03 is now an 84% pass through

10. Rename Alternate Postage to Share Mail
Easy and convenient way to share promotions from businesses through the mail without affixing a stamp
Postage is paid using IMb scans
Follow Single-Piece First-Class Mail standards for processing, handling and delivery

11. Alternate Postage Simplify price structure
Customers will pay one price for letters and one price for postcards:
Letters: $0.57
Postcards: $0.42
Eliminate the option to use Picture Permit Imprint for this service
Participation requires registration through the Business Customer Gateway (BCG)

12. Alternate Postage Identifying markers:
Facing Identification Mark E (FIM E)
Intelligent Mail barcode® (IMb)
Indicia with the following text:
First-Class Mail
U.S. Postage Paid
<Company Name>
IMb-POSTAGE
FIRST-CLASS MAIL
US POSTAGE
PAID
COMPANY NAME
IMB POSTAGE
JOHN DOE
123 MAIN ST
CITSY STATE ZIP+4 CODE 1 3 2

13. One price for commercial letters up-to 3.5oz
SINGLE PRICE $$ $$
2.0oz
3.5oz

14. Standard Mail Price Changes
Price 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%

15. Rename “Standard Mail” to “USPS Marketing Mail”
The new indicia and/or postage markings should not be used for letter or flat mail until January 2018 at the earliest
Tray label and pallet markings will be deferred until mid-2017 at the earliest
NEW

16. Reduce from 6 volume tiers to 2 volume tiers:
Standard Mail Parcels
Simplify pricing structure of Saturation and Carrier Route Parcels (Simple Samples)
Reduce from 6 volume tiers to 2 volume tiers:
Volumes up to and equal to 200,000 pieces
Volumes greater than 200,000 pieces
OLD
6 tiers reduced to 2 tiers

17. Periodicals and Package Services Price Change
CPI Percent Change
Outside County
0.8%
Inside County
1.0%
Package Services
CPI Percent Change
Media Mail/Library Mail
1.1%
Alaska Bypass
Bound Printed Matter:
Flats
0.8%
Parcels
1.0%

18. Provides images of daily mail before it is delivered to mailbox
Informed Delivery
Provides images of daily mail before it is delivered to mailbox

19. 2017 Promotions and Incentives

20. 2017 Promotions and Incentives
First-Class Mail Promotions:
Earned Value
Enclose BRM or CRM envelopes in outgoing mail
Will include Share Mail 2017
Color Transpromo
Use print technology in messaging to create consumer connection

21. 2017 Promotions and Incentives
Standard Mail and First-Class Mail Promotion:
Emerging & Advanced Technology
Incorporate interactive technology to drive interest in mail as a marketing channel
3 new categories:
Links
Paper
Interactive Technologies
Augmented
Reality
NFC

22. 2017 Promotions and Incentives
Standard Mail Promotions:
Tactile, Sensory & Interactive Mailpiece Engagement
Innovative use of specialty elements that the recipient can interact with and manipulate on the mailpiece
Samples must be approved prior to mailing to qualify for this promotion
Direct Mail Starter Incentive
First-time mailers incorporate qualifying print-mobile
Standard Mail (letters or flats) Regular/Non-Profit
Discount may apply up to 10,000 pieces during promotion period
Offers 5% discount at the time of mailing

23. 2017 Promotions and Incentives
NEW Standard Mail Promotion: Mobile Shopping
Examples of acceptable color branded barcodes
Color Banded Mobile barcode can be used – must be functional and incorporate one of the following:
2 or more colors
Trademark or graphic that includes color(s)
QR Code Evolution:

24. Elimination of Permit Fees
Eliminate the following permit fees:
Permit Type
Fee
Return Services
Return Services Annual Permit
Return Services Account Maintenance
Business Reply Mail
Annual Permit Fee*
Permit Imprint
Parcel Select
Presorted Library Mail
Presorted Media Mail
*Parcels only or QBRM (see next slide for more details)

25. High-Volume Parcel Invoicing
Business Reply Mail
January 2017 new fee requirement rules are in effect
BRM
Basic
Parcel Invoicing
High-Volume Parcel Invoicing
QBRM Letters & Flats
High-Volume
QBRM Letters & Flats
Master Annual Permit Fee Payment
Sub-account’s Annual Maintenance Fee NA
Sub-account’s QBRM Quarterly Fee
BRM Sub-Accounts can now pay their Annual Account Maintenance Fee or QBRM Quarterly Fees without having their associated Master’s Annual Permit Fee paid first.

26. Shipping Products Permit
New Shipping Products Permit
PI/OI
Outbound and return parcels only
No permit fees
Manage 1 permit

27. Shipping Products Permit
Eligible Parcels
Not Eligible
Priority Mail Express
Priority Mail
Parcel Select and Parcel Select Lightweight
First-Class Package Services
Bound Printed Matter (parcels only)
Media Mail
Library Mail
Standard Mail
Periodicals
Cards, Letters, or Flats of any mail class

28. Shipping Products Permit
Current Shipping Permits
New Shipping Products Permit
Mailer
Mailer pays: Outbound Fee (Permit A) Returns Fee (Permit B) Annual Mailing/Maintenance Fees (A & B)
Return Parcels
Outbound Parcels
Mailer
Mailer pays: No Fees
Return Parcels
Outbound Parcels
Permit B
Permit A
Permit A
Permit A

29. Shipping Products Permit
Mailers using the Shipping Products Permit can accept returns using:
Parcel Return Service (PRS) via electronic Verification System (eVS)
USPS Returns via Scan Based Payment (SBP)
Spring 2017 the Shipping Products Permit will be available to mailers using:
Business Reply Mail for parcels
Merchandise Return Service labels

30. Shipping Products Permit
Requesting a Shipping Products Permit:
New Mailers via Business Customer Gateway
Existing Mailers: PostalOne! via acceptance employees
New Mailers
Existing Mailers

31. Full-Service Cumulative Percent Display
Background on Cumulative Percentage and Fee Waiver
Mailers claiming presorted rates pay an annual fee for each permit
Annual fee is waived if:
Full-Service mailing
Cumulative % is consistently maintained at 90% or greater
Cumulative % is calculated using the following formula:
As of Nov 2013 fee waiver changed from per-mailing to cumulative Full-Service %
Fee waiver period
Cumulative period
Fee Anniversary Date
End Date
Note: Fee waiver period and cumulative period are concurrent

32. Full-Service Cumulative Percent Display
Background - Fee Waiver Period Ends - Scenario 1: Fee Anniversary date arrives triggering a reset

33. Full-Service Cumulative Percent Display
Background - Fee Waiver Period Ends - Scenario 2: Cumulative Full-Service % falls below 90
Annual fee is due and paid

34. Full-Service Fee Wavier
PostalOne! will review daily postage statement cumulative to determine Full-Service percentage
Includes submitted and reversed postage statements
Change mitigates postage statements being finalized in manner that may negatively impact mailer
Once a fee is paid, PostalOne! does not look at the Full-Service percentage until the next anniversary date:
The date the fee is paid will become the new anniversary date
Each anniversary renewal date resets the Full-Service percentage to 0%
Fee Waived
90% cumulative Full-Service volume
Fee Paid

35. Priority Mail Express Price Increases Service Before Jan 22
After Jan 22
Flat Rate Envelope
$22.95
$23.75
Legal Flat Rate Envelope
$23.95
Padded Flat Rate Envelope
$24.45

36. Domestic Extra Services
Price Increases
Service
Before Jan 22
After Jan 22
Adult Signature
Basic Service
$5.70
$5.90
Person Specific Service
$5.95
$6.15
Pickup On Demand
$20.00
$22.00
Package Intercept Service
$12.55
$12.95
Premium Forwarding Service (PFS) Commercial, Priority Mail Express or Priority Mail shipments can be dispatched in bulk at a flat rate for full and half trays

37. Priority Mail Price Increases Service Before Jan 22 After Jan 22
Flat Rate Envelope
$6.45
$6.65
Legal Flat Rate Envelope
$6.95
Padded Flat Rate Envelope
$6.80
$7.20
Small Flat Rate Box
$7.15
Medium Flat Rate Box
$13.45
$13.60
Large Flat Rate Box
$18.75
$18.85
Large APO/FPO/DPO Flat Rate Box
$16.75
$17.35

38. Other Services Price Increases Service Price Increase %
International Surface Air Lift
3.8%
ISAL M-Bags
3.9%
International Priority Airmail
IPA M-Bags
Airmail M-Bags
4.9%
First-Class Package International Service
No change
International Ancillary Services & Special Services
10.6%
International Money Orders
73.7%
Outbound International Registered Mail
7.2%

39. Extra Services Price Change
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

40. Price Change 2017: Resources
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
BMA page:
PostalPro: