1. New Year, New Shipping Everything you need to know about changes to shipping in 2015 and how you can capitalize on them and SAVE! Hosted by: Binghamton Postal Customer Council Presented by: Lisetta Coffin, Certified Postal Consultant, Pitney Bowes Major Account Manager Countdown To A :

2. 2 Session Objectives Less than 35 days left in 2014! There’s still time to be geared up to ship smarter in 2015!!!  Understand the full impact of the upcoming 2015 rate changes from USPS, FedEx, and UPS will have on your organizations’ Operating Budgets!

3. 3 USPS IMpb January 25 th, 2015 USPS IMpb January 25 th, 2015 The Final Countdown to 2015 Prepare your organization today…. The cost of doing NOTHING, will be More than the cost of doing something!!!!! Help your organization avoid “invoice shock” in January when carrier rate changes go into effect. FedEx & UPS Dimensional Rating Expansion UPS – December 29, 2015 FedEx – January 1, 2015 FedEx & UPS Dimensional Rating Expansion UPS – December 29, 2015 FedEx – January 1, 2015

4. 4 What is Dimensional Rating? A billing technique that takes into account the length, width, and height of a package. By charging only by weight, lightweight, low density packages become unprofitable to carriers due to the amount of space they take up in proportion to their actual weight. Dimensional weight rating establishes a minimum charge for the cubic space a package occupies. Which costs less to ship? A 3 lb. laptop? Or a 1lb. teddy bear? ACTUAL WEIGHT 3 LB DIMENSIONAL WEIGHT 3 LB BILLABLE WEIGHT 3LB ACTUAL WEIGHT 1 LB DIMENSIONAL WEIGHT 7 LB BILLABLE WEIGHT 7LB

5. 5 FedEx & UPS – Dimensional Rating FedEx and UPS will be expanding dimensional rating to small packages in 2015: UPS: December 29, 2014 FedEx: January 1, 2015 Previously, UPS and FedEx Ground service packages were only subject to dimensional weight rating if they were 3 cubic feet or larger 18” x 18” x 16” 5,184 cubic inches (3 cubic feet) 18” x 18” x 16” 5,184 cubic inches (3 cubic feet) 8” x 6” 4” 192 cubic inches 8” x 6” 4” 192 cubic inches NOW2015

6. 6 What does this mean for your Carrier bills?  It’s estimated that 85% of all ground shipments will be subject to this new pricing structure, and in many cases, it will result in a large price increase  Some are estimating double-digit cost hikes* for shippers when annual rate increases are factored in Source: http://multichannelmerchant.com/news/experts-new-ups-dimensional-weight- pricing-will-significant-impact-18062014/ /

7. 7 Shipping Costs Are Going to Skyrocket Depending on what you ship (and how often) with UPS and FedEx, you will feel the impact of these changes:

8. 8 A Home Goods Store Ships 100 Packages with FedEx each week… In 2014: $37,284 In 2015: $50,232 That’s an increase of $13,000 per year (over $1,000/month)…

9. 9 The Market is Responding…

10. 10 IM®pb options: 1. Requires a shipping solution – label generated is specific to each mail piece 2.Label can be printed with postage, saving the metering step to apply postage. 3. Shipping Solution Uploads mailing information in the required Shipping Services File (SSF) format (Address data, Zip+4, Class of Service, Extra Services and Mailer ID) 3.Enhanced tracking and visibility 4. Facilitates Eligibility for CBP or CPP Discounts 5. Free Insurance $50 Retail & CBP and $100 CPP 1.Preprinted label. Use with Postage Meter Tape. 2.Mailing information is Not uploaded to USPS 3.Facilitates tracking 4.Must pay FULL Penalty rate. Not eligible for CBP or CPP pricing 5.Only get Insurance if it is scanned at Post Office Retail Counter vs.

11. 11  Organization who implement an IMpb solution will benefit from a discount (called Commercial Based Pricing).  The USPS will also provide Free Insurance because they now have extensive tracking throughout the delivery process Organizations with consistent volume of packages or mail with Extra Services (i.e. Certified Mail) are great candidates : Qualify for CBP discounts - reducing shipping spend Improve workflows, reduce labor Provide increased visibility and tracking Ship smarter – more choice with a multi-carrier solution IMpb Recap – Hot Opportunity IMpb guidelines go into effect January 2015 – The time to talk about this is now!

12. 12 A Great Time to Start Shipping with USPS  The USPS’ IMpb label puts them on par with private carriers like UPS and FedEx when it comes to tracking Organization who never considered USPS for shipping should strongly consider them as an option  Organizations who use IMpb will benefit from CBP discounts and will receive free parcel insurance  USPS is now a great carrier option and with dimensional rating changes coming in January to UPS and FedEx, it’s a great time to shift demand

13. 13 CarrierManagement Software  Allow dimensions to be entered and can calculate the dimensional rate of a package  This provides workflow benefits and also helps with accuracy, preventing rating errors that could result in unanticipated back charges Enter weight and dimensions into Enter weight and dimensions into Ss

14. 14 Objections – “I only use UPS OR FedEx because their systems are free to use OR we have contract rates with our carrier” Shipping with UPS or FedEx is going to become more expensive in 2015 due to their new dimensional rating rules Consider optimizing the contract rates you are receiving Use a software solution to help you adhere to your contract (carrier provided systems are designed to push more expensive services) Consider a multicarrier solution to mitigate risk (strikes, different rate zones, dim rating, weather related delays, etc.) of using only one carrier and more importantly so you can make the smartest choice when shipping

15. 15 Objections – “We don’t use USPS for shipping because we need to track our packages”  With IMpb, the USPS can now provide full end-to-end tracking visibility that is on par with private carriers like UPS and FedEx, making them a great choice for shipping  Furthermore, IMpb processed through a software solution, gives you the best rates, called commercial based pricing, which can help you save money.  You’ll also receive free insurance with USPS and IMpb  Both UPS & FedEx trust the USPS for their “last mile delivery”’. So you can trust the USPS for the whole journey.

16. 16 Use this slide for a Full-bleed image Impact of the 2015 FedEx Ground Dimensional Rating Changes to the Top 25 Box Sizes – from Multi-Channel Merchant

17. 17 Saving with the USPS

18. 18 Thank-you for Coming!  Questions?  Lisetta.Coffin@pb.com Lisetta.Coffin@pb.com  607 624 4164