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1 Proprietary Information. Copyright 2007 Hasler, Inc. All Rights Reserved
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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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3 Proprietary Information. Copyright 2007 Hasler, Inc. All Rights Reserved 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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4 Proprietary Information. Copyright 2007 Hasler, Inc. All Rights Reserved 2-ounce letter 63¢ 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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5 Proprietary Information. Copyright 2007 Hasler, Inc. All Rights Reserved Shape Based Mail Formats Letter Flat (Large Letter) Parcel First Class
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6 Proprietary Information. Copyright 2007 Hasler, Inc. All Rights Reserved 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 RatesMay 14, 2007 Rates 1st Class Rates at a Glance
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7 Proprietary Information. Copyright 2007 Hasler, Inc. All Rights Reserved Mail Processing Flowchart (First Class Example)
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8 Proprietary Information. Copyright 2007 Hasler, Inc. All Rights Reserved 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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9 Proprietary Information. Copyright 2007 Hasler, Inc. All Rights Reserved 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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10 Proprietary Information. Copyright 2007 Hasler, Inc. All Rights Reserved 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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11 Proprietary Information. Copyright 2007 Hasler, Inc. All Rights Reserved Minimize Costly Flats 6 x 9.5” + = $0.80 2 Pages Folded in ½ + = $0.41 9” x 12” Flat2 Pages 49% Savings! Thin Flat Reconfiguration Example:
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12 Proprietary Information. Copyright 2007 Hasler, Inc. All Rights Reserved 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 Pages 9 Pages Of 20lb. – Over ¼” 6 Pages 9 Pages
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13 Proprietary Information. Copyright 2007 Hasler, Inc. All Rights Reserved 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 $
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