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PCC Meeting March 12, 2009 New Mailing Services Prices Effective May 11, 2009

PCC Meeting March 12, 2009 New Mailing Services Prices Effective May 11, 2009. First-Class Mail (includes First-Class Mail International) Standard Mail Periodicals Package Services Special Services. Mailing Services 89% total revenue. First-Class Mail: 58% Standard Mail: 31%

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PCC Meeting March 12, 2009 New Mailing Services Prices Effective May 11, 2009

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  1. PCC Meeting March 12, 2009 New Mailing Services Prices Effective May 11, 2009

  2. First-Class Mail (includes First-Class Mail International) Standard Mail Periodicals Package Services Special Services Mailing Services 89% total revenue First-Class Mail: 58% Standard Mail: 31% Periodicals: 4% Special Services: 4% Package Services: 3% New Mailing Services Prices – May 11, 2009

  3. Consumer Price Index (CPI) cap Annual, predictable price changes Announce in February and implement in May Mailing Services New Mailing Services Prices – May 11, 2009

  4. CPI Cap (12 month moving average) 2009 Cap 2008 Cap 3.8% 2.9% New Mailing Services Prices – May 11, 2009

  5. Average +3.78% First-Class Mail New Mailing Services Prices – May 11, 2009

  6. Letters: 44¢ (+2¢) Flats: 88¢ (+5¢) Parcels: $1.22 (+5¢) Postcards: 28¢ (+1¢) Unchanged: Additional ounce Nonmachinable surcharge First-Class Mail – Single-Piece New Mailing Services Prices – May 11, 2009

  7. Align auto and machinable letter characteristics Provide choices Optional 5-digit, 3-digit, and AADC preparation Maintain 2.2¢ incentive for 5-digit No change in the additional ounce price for automation/presort letters, flats, and parcels First-Class Mail – Commercial New Mailing Services Prices – May 11, 2009

  8. Auto flats New tray-based preparation 50 piece minimum Must use delivery point barcode First-Class Mail – Commercial New Mailing Services Prices – May 11, 2009

  9. Separate prices for Canada and Mexico Canada:75¢ (+3¢) Mexico: 79¢ (+5¢) All other countries: 98¢ (+4¢) No change to country price groups First-Class Mail International New Mailing Services Prices – May 11, 2009

  10. Average +3.78% Standard Mail New Mailing Services Prices – May 11, 2009

  11. Align auto and machinable letter characteristics Provide choices Optional 5-digit, 3-digit, and AADC preparation for auto letters Optional AADC preparation for machinable letters Move Update compliance Standard Mail New Mailing Services Prices – May 11, 2009

  12. Machinable parcels/NFMs (six ounces and over) Origin entry BMC prices limited to pallets MBMC prices for other preparation Drop ship entry 5-digit prices BMC prices Standard Mail – Packages New Mailing Services Prices – May 11, 2009

  13. Irregular parcels/NFMs (less than six ounces) 3-digit prices change to SCF ADC and MADC prices change to BMC and MBMC Origin entry BMC prices limited to pallets MBMC prices for other preparation Drop ship entry 5-digit, SCF, and BMC prices Standard Mail – Packages New Mailing Services Prices – May 11, 2009

  14. Encourage volume growth Additional pieces More frequency Incentives for new volume 4.0¢ flats 3.7¢ letters One-year program Enrollment through June 11, 2009 Standard Mail – Saturation Mail New Mailing Services Prices – May 11, 2009

  15. Lower than average price increase +2.31% Lowered pound rate to encourage more content Standard Mail – Catalogs New Mailing Services Prices – May 11, 2009

  16. Average +3.97% Periodicals • Free address correction service with full-service IMb New Mailing Services Prices – May 11, 2009

  17. Average +3.80% Package Services New Mailing Services Prices – May 11, 2009

  18. Lower the price of BPM flats Consistent with Standard Mail catalog strategy Simplify Parcel Post Remove BMC designations, Local Zone, and nonmachinable surcharge Package Services New Mailing Services Prices – May 11, 2009

  19. Average +3.84% Certified Mail: $2.80 (+10¢) Return Receipt: $2.30 (+10¢) Annual Mailing Fees: $185 (+$5) Confirm Service New Bronze tier Special Services New Mailing Services Prices – May 11, 2009

  20. Immediate benefits in May Free Address Correction Service Start-the-clock information Full-service prices (November 29) 0.3¢ for First-Class Mail 0.1¢ for Standard Mail and Periodicals Long-term benefits Actionable information Operations, marketing, and finance Paperless documentation Full Service Intelligent Mail New Mailing Services Prices – May 11, 2009

  21. Resources • USPS.com/prices • New Price List • Downloadable price files • Federal Register notices • Postal Explorer(pe.usps.com) • DMM Advisory(dmmadvisory@usps.com) • PCC Insider(pccinsider@usps.com) • MailPro(usps.com/mailpro) New Mailing Services Prices – Mail 11, 2009

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