1	Postal Rate Commission (PRC) The USPS^® Rate Case R2006-1 Shape-Based Pricing
2	SHAPE BASED PRICING VS. THE CURRENT RATE STRUCTURE Under the current structure, the cost of sending a first-class mail is determined by weight. Under the Shaped Based Pricing, the cost will be calculated using the weight, the size and thickness, falling into 3 different categories that are outlined below.
3	Shape Based Rating
4	History Of Stamp Prices
5	Topics Of Discussions For Mailstream Optimization Timeline of USPS^® Events Leading to the New Rate Implementation Overview of the Postal Rate Commission Decisions Automation Letter-sized-still saves! Shape-Based Rates -what does it mean? Classes of Mail -what’s impacted Maintaining Your Address Database-it makes good business sense Extra Services -one rate is Decreasing! How do you make this all work for your organization?
6	The USPS® Rate Case Timeline
7	Yes, another… Proposed USPS^® Rate Case System-wide average increase of 7.6% First-Class ^® will move from $.39 to $.41 Why an Increase? Cover the costs of processing and operating When will it go into effect? The implementation will likely take effect not before May 2007 How does this impact your organization? All classes of mail and processing categories Introducing Shape-Based Pricing Pricing structure based on a combination of shape and weight Utilize business partnerships to see how you can minimize the rate case increase through automation
8	Average Percent Rate Change USPS^® Compared to PRC Recommended Rate
9	Let’s Compare: First-Class^® PRC Recommended Rates vs. Current Rates
10	Postcards Are Still a GREAT Value PRC Recommended Rates Ideal – no “opening” Keeps headline and information simple Can be used as a coupon, certificate or ticket
11	Shape-Based Rating-Supported by the PRC SBR vs. Current Structure Under the current structure, the cost of sending First-Class Mail® is determined by weight. With SBR, the cost will be calculated using, weight, size and thickness falling into three different categories as explained in the diagram below.
12	Current First-Class Mail^® Strategy Shape-based pricing Letters Flats Parcels
13	PRC First-Class Mail^®Strategy Shape-based pricing Letters Flats Parcels
14	PRC First-Class Mail^® Significant Changes Additional ounce 24¢ ►17¢ Letters over 1 ounce go down Flats over 6 ounces go down Similar pattern for workshare Automation letters (additional ounce) 23.7¢ ►12.5¢ Presorted letters, flats, and parcels (additional ounce) 23.7¢ ►17¢
15	First-Class Mail^® Significant Changes Forever Stamp Convenient 1-ounce single-piece price Good forever Single-piece 39¢ ►41¢ Postcards 24¢ ►26¢
16	First-Class Mail^® Examples
17	First-Class Mail^® Examples
18	Priority Mail® Significant Changes
19	"Low-cost alternative for shipping time..." Low-cost alternative for shipping time sensitive documents New 1-pound rate
20	"Align pricing with operations-Encourage growth..." Align pricing with operations-Encourage growth of efficient, effective mail Expand shape-based pricing Increase drop ship incentives Create distinct prices for parcels
21	It’s Simple Arithmetic Sharpen Your List Data Identify addresses likely to result in Undeliverable As Addressed mailpieces, You're driving down UAA costs that often result in increased USPS rates. Improves collection of revenue, receipt of required notifications, and more The more pieces from a mailing that actually hit their target, the more that mailing is worth Avoid costly wasted returns (and USPS^®non-compliance fines), and making the most out of every mailing.
22	USPS Study-Address Deficiencies On average, 23.5% of the addressees have deficiencies in a typical database Maintain your address database to increase the likelihood the your mailpiece will reach the intended recipient
23	Automate Your Mail with Delivery Point Barcode including DPV™
24	Approved USPS Move Update Options
25	Don’t forget the new USPS regulation: DPV™ (delivery point validated) CASS Cycle L August 1^st 2007 requirement DPV™ (delivery point validation) requirement USPS^® said with CASS Cycle L-the primary number in an address must be DPV™ in order to receive a ZIP+4^® assignment. If the primary number of an address cannot be DPV^™-verified, it will NOT qualify for the automation rate and will fall to the next nearest nonautomation rate. In addition, LACS^Link(conversion of rural addresses) will be part of the CASS Cycle L.
26	Will This New Requirement Affect You? YES, in many ways Confidence in the quality of your addresses in your database Take advantage of the opportunity to validate your addresses prior to mailing CASS cycle L will help you reach your intended mail recipient Avoid lost opportunities Minimize the cost of the proposed rate case Reduce UAA mail
27	PRC Recommendations- Extra Services
28	How Do You Make ALL This Work For Your Organization? Optimizing your Mailstream by producing Automation Compatible Mail Partner with the USPS through workshare programs REDUCE POSTAL EXPENDITURES Faster delivery = Faster remittance IMPROVED CASH FLOW Ensure compliance with state and local regulations Professional Appearance improves openability
29	Summary: Managing Your Database Within Your Postal Budgets and Mailing Smarter Ensure Address Accuracy; Incorporate Move Update Solutions Automate your mailing by using CASS DPV™ software Select the appropriate Class of Mail Select the appropriate packaging (letter, flat, parcel etc) Maximize the Opportunity; take advantage of the additional ounce and the 6x9 envelope Stay informed; use technology to make the right mailing decisions
30	Points to Consider Shape Based vs. Mail Piece Design -More is Less Mail Moment Presentation vs Postage Special Services Share Space in the Envelope– Do not pay for the Air How To Offset the Increase If you try to control your costs at the meter, it’s too late. Forever Stamp Delivery Objective -More then just when will it get there
31	Mail Stream
32	Any Additional Comments?