Shipping Services Price Change Effective January 26, 2014 Presented by: Eileen Brieck Sr Field Sales Rep Northern Ohio U.S. Postal Service Jan 15 2014 1 Shipping Services Domestic products 2 Priority Mail Express™ Priority Mail® Parcel Select® Parcel Return Service First-Class Package Service® Standard Post™ Other Competitive Offerings Shipping Services (cont’d) International products 3 Global Express Guaranteed® (GXG®) Priority Mail Express International™ Priority Mail International® First-Class Package International Service® International Priority Airmail® (IPA®) International Surface Air Lift® (ISAL®) Airmail M-Bag® Competitive Extra Services Domestic Shipping Services Product 4 Overall Average Increase Priority Mail Express 3.0% Priority Mail 0.0% Parcel Select Parcel Return Service 9.2% First-Class Package Service Standard Post 5.0% 3.0% 5.2% Priority Mail Express ─ Retail Prices Average Retail Increase ─ 3.1% New! 10:30 a.m. delivery w/ $5 fee 1/2 pound price from $16.95 Flat Rate Envelope $19.99 Flat Rate Box $44.95 5 5 Priority Mail Express ─ new Zone 9 For Freely Associated States (FAS) Palau, Micronesia, Marshall Islands Separate zone to align price with cost of transportation 6 6 Priority Mail ─ Commercial Base Prices Prices increase on average 0.0% Average 11.0% lower than Retail prices Flat Rate Envelope* $5.05 Legal Flat Rate Envelope $5.25 Padded Flat Rate Envelope $5.70 Flat Rate Box prices start at: $5.25 * Includes Regular Flat Rate Envelope, Small Flat Rate Envelope, Window Flat Rate Envelope and Gift Card Flat Rate Envelope. 7 Priority Mail ─ Commercial Plus Prices Prices increase on average 0.0% Average 14.3% below Retail prices Prices start at $4.58 Account volume thresholds apply Regional Rate Box also available Annual account volume thresholds do not apply Postage paid at Commercial Base prices 8 Priority Mail ─ Commercial Plus Cubic Prices Price based on cubic measurement and zone Five price tiers starting at $4.58 New! Lower account volume threshold Cubic soft pack Priority Mail Open and Distribute® Only tray boxes entered at Priority Mail Commercial Plus prices are charged based on the tray box and zone to which sent rather than weight and zone 9 9 Parcel Select Overall Average Increase 9.2% Destination Entry DDU DSCF DNDC Non-destination Entry Parcel Select Lightweight 10 Average Increase 8.0% 5.6% 5.1% 5.9% 10.1% 10 Parcel Return Service Overall Average Increase 3.0% Average Increase by Category 11 Return Network Distribution Center (RNDC) 0.0% Return Sectional Center Facility (RSCF) 0.0% Return Delivery Unit (RDU) 5.7% PRS–Full Network 0.0% 11 First-Class Package Service Overall average increase is 5.0% Commercial Base and Commercial Plus pricing Free USPS Tracking and confirmation of delivery with Intelligent Mail® package barcode (IMpb) 12 12 Standard Post Overall average price increase is 5.2% Free USPS Tracking New! Zones 1-4 upgraded to Priority Mail* * except for HAZMAT and live animals A “Retail” product with payment by stamps or meter; deposited at Retail counter or Package Pickup 13 13 International Shipping Services Global Express Guaranteed (GXG) Priority Mail Express International Priority Mail International First-Class Package International Service International Priority Airmail (IPA) International Surface Air Lift (ISAL) Direct Sacks of Printed Matter to One Addressee (Airmail M-bags) International Extra Services 14 Global Express Guaranteed (GXG) Average Overall Increase Commercial Base Price 3.0% Lower than Retail by up to 13% Commercial Plus pricing Annual revenue commitment required Prices lower than Retail by up to 20% Global Expedited Package Services – NonPublished Rates (GEPS – NPR) contracts 15 Priority Mail Express International Average Overall Increase Commercial Base Price 1.3% Lower than Retail by up to 11% Flat Rate Box $66.95 to Canada / $84.95 to rest of the world Flat Rate Envelope $35.95 to Canada/ $46.50 to rest of the world Commercial Plus pricing Prices lower than Retail by up to 20% GEPS agreements 16 Priority Mail International Average Overall Increase Commercial Base Price 1.1% Lower than Retail by up to 13% Flat Rate Envelope and Small Flat Rate Box Canada $20.55/ rest of world $24.75 Medium Flat Rate Box Canada $42.25/ rest of world $61.75 Large Flat Rate Box Canada $55.75/ rest of world $80.50 Commercial Plus pricing -- Prices lower than Retail by up to 19% E-USPS DELCON INTL available to 12 more countries 17GEPS agreements First-Class Package International Service Average Overall Increase Commercial Base Price 0.8% Lower than Retail by up to 14% Commercial Plus pricing Prices lower than Retail by up to 19% E-USPS DELCON INTL™ available to 12 more countries Eligible for Package Pickup or Pickup On Demand service 18 Resources Postal Explorer® ─ pe.usps.com Current and new prices downloadable price files Federal Register notices link to the Postal Bulletin Domestic Mail Manual (DMM®) and International Mail Manual (IMM®) DMM Advisory – posted on Postal Explorer Also special email updates. Subscribe via e-mail: dmmadvisory@usps.com 19 Questions? 20