Contents:

• Price Change Overview
• Shipping Changes
• Mailing Changes
• Shape-Based Pricing Expands to First Class International
• USPS Insurance
• Tips and Hints

On May 12th 2008, the US Postal Service will implement new postal pricing and classifications, including exciting commercial discounts for online shippers. Prior to that date, your Endicia software will auto-update to a new version which includes the new prices. Please allow this update to be performed when you are prompted. If you have allowed the update, the software will use the old prices before May 12 and will automatically switch to the new prices from that date forward.

While the update will be implemented seamlessly, there are significant changes to the U.S. Postal Service's pricing structure and new discounts that can yield great savings on your shipping costs. Here is a summary of the changes most likely to affect you.

Price Change Overview

• Pricing highlights for package shippers:

  • Express Mail customers will receive a 3 percent price reduction by printing a pre-filled Express Mail label online with an Express Mail barcode.
  • Additional price reductions are available for those who ship Express Mail quarterly volume minimums.
  • Priority Mail will have an average 3.5 percent savings for customers who use electronic postage with Delivery Confirmation.
  • Express Mail is switching to a zone-based pricing system, resulting in customers paying less for nearby destinations.

• Pricing highlights for mailers:

  • No change in the First-Class Mail single-piece additional-ounce price.
  • Shape-based pricing for First-Class Mail International letters, flats, and parcels.
  • First-Class Mail International price groups expand from five to nine groups.

Shipping Changes

The big news is that Endicia users can now receive commercial discounts on domestic mail with the new postal pricing. By using Endicia’s complete shipping labels, you can qualify for these discounts.

• Discounts for Express Mail:

  • Commercial Discounts:

    • Customers will receive a 3% discount when using a pre-filled Express mail label with the Express Mail barcode. Here’s an example of what you could save:
      
      

      Savings with Express Mail Commercial Prices:
      Weight (lbs.)	2008 Average Retail Price	2008 Average Commercial Price	You Save
      1	$20.33	$19.72	$0.61
      2	$22.16	$21.50	$0.66
      3	$24.73	$23.99	$0.74
      4	$27.71	$26.88	$0.83
      5	$30.41	$29.50	$0.91
      10	$45.46	$44.10	$1.36
      Flat Rate	$16.50	$16.00	$0.50

      
      
      Notes: Retail Price is the standard counter price for postage at the Post Office. Commercial Price is the price available to Endicia users selecting pre-filled Express Mail labels. The Retail and Commercial prices listed are averages of the zone pricing for that weight.
      
      Here’s an overview of price changes from 2007 to 2008. The highlighted fields show where prices have decreased:
      
      

      Express Price Changes:
      Weight (lbs.)	2007 Average Price	2008 Average  Commercial Price	Average Commercial Change
      1	$19.50	$19.72	$0.22
      2	$21.40	$21.50	$0.10
      3	$24.50	$23.99	-$0.51
      4	$27.60	$26.88	-$0.72
      5	$30.70	$29.50	-$1.20
      10	$45.25	$44.10	-$1.15
      Flat Rate	$16.25	$16.00	-$0.25

      
      
      Notes: The Retail and Commercial prices listed are averages of the zone pricing for that weight.

  • Volume Discounts:

    • In addition to the straight 3% discount on domestic Express Mail shipping, customers who meet certain volume requirements will also qualify for volume-based incentives. Here’s a table outlining the volume levels and associated incentives:
      
      

      Quarterly Volume	Additional Incentive	Total Saving w/ 3% online discount
      Average Daily Volume over 2 pieces	2%	5.0%
      Average Daily Volume over 7 pieces	4.5%	7.5%
      Average Daily Volume over 15 pieces	7%	10.0%

      
      These incentives will be assessed on a quarterly basis.

• Discount for Priority Mail:

  • Customers will receive an average discount of 3.5% when using Delivery Confirmation. Here’s an example of what you could save:
    
    

    Savings with Priority Price Changes:
    Weight (lbs.)	2008 Average Retail Price	2008 Average Commercial Price	You Save
    1	$4.80	$4.75	$0.05
    2	$6.28	$6.03	$0.25
    3	$7.91	$7.46	$0.45
    4	$9.41	$8.89	$0.52
    5	$10.84	$10.23	$0.61
    10	$16.52	$15.71	$0.81
    Flat Rate Envelope	$4.80	$4.75	$0.05
    Flat Rate Box Small	$9.80	$9.30	$0.50
    Flat Rate Box Large	$12.95	$12.50	$0.45

    
    
    Notes: Retail Price is the standard counter price for postage at the Post Office. Commercial Price is the price available to Endicia users selecting Delivery Confirmation. The Retail and Commercial prices listed are averages of the zone pricing for that weight.
    
    Here’s an overview of price changes from 2007 to 2008. The highlighted fields show where prices have decreased:
    
    

    Priority Price Changes:
    Weight (lbs.)	2007 Average Price	2008 Average Commercial  Price	Average Commercial Change
    1	$4.60	$4.75	$0.15
    2	$5.83	$6.03	$0.20
    3	$7.47	$7.46	$0.84
    4	$9.09	$8.89	-$0.20
    5	$10.51	$10.23	-$0.28
    10	$15.30	$15.71	$0.41
    Flat Rate Env.	$4.60	$4.75	$0.15
    Flat Rate Box Sm.	$8.95	$9.30	$0.35
    Flat Rate Box Lg.	$12.95	$12.50	-$0.45

    
    
    Notes: The Retail and Commercial prices listed are averages of the zone pricing for that weight.

• Zone Pricing Expands to Express Mail:

  • Express Mail will be moving to zone-based pricing with the May 12th Price Change. While pricing will remain about the same on average for Endicia shippers, the zone-based pricing will allow the Postal Service to offer better prices for packages shipping to zones 1-3. Endicia software will automatically compute the zone-based prices for you when you prepare a pre-filled Express Mail form, so you don’t have to worry about looking up shipping zones. Your transition to the new prices will be seamless.
    
    See the chart below for a summary of the commercial zone pricing for Express Mail. The highlighted zones actually show savings over last year’s prices:
    
    

    Weight (lbs.)	2008 Zones 1&2	2008 Zone 3	2008 Zone 4	2008 Zone 5	2008 Zone 6	2008 Zone 7	2008 Zone 8
    1	$14.11	$18.43	$21.73	$21.97	$22.21	$22.46	$22.69
    2	$15.23	$19.55	$23.91	$24.15	$24.40	$24.64	$24.88
    3	$16.15	$16.15	$27.55	$28.03	$28.03	$28.28	$28.52
    4	$17.41	$22.07	$31.14	$31.38	$31.62	$31.86	$32.11
    5	$18.04	$23.62	$34.77	$35.02	$35.26	$35.50	$35.74
    10	$27.74	$34.05	$51.12	$51.94	$52.19	$52.43	$52.67

    
    
    Notes: Zones are based on the distance between the shipper and the recipient

• Changes for Other Domestic Shipping Classes:

  • As many of you ship Media Mail and First Class Parcel, here is information on the new prices for these classes:
    
    

    MEDIA MAIL w/DC
    Weight (lbs.)	2007 Price	2008 Price
    1	$2.31	$2.41
    2	$2.65	$2.76
    3	$2.99	$3.11
    4	$3.33	$3.46
    5	$3.67	$3.81
    10	$5.37	$5.56

    
    

    FIRST CLASS MAIL PARCELS w/DC
    Weight (oz.)	2007 Price	2008 Price
    1	$1.31	$1.35
    2	$1.48	$1.52
    3	$1.65	$1.69
    4	$1.82	$1.86
    5	$1.99	$2.03
    10	$2.84	$2.88

    
    

• Changes for International Shipping Classes:

  • For both Express Mail International and Priority Mail International, last year’s discounts of 8% and 5% when using Stealth Postage and the correct dedicated international label will continue to be in effect. Here are tables of the new pricing for both classes:

Mailing Changes

On May 12 new prices will also be in effect for mailing services — First-Class Mail, Standard Mail, Periodicals, Package Services, and Special Services. The average increase by class of mail is at or below the rate of inflation as measured by the Consumer Price Index.

• Pricing highlights:

  • Here’s a table showing some of the price changes on First Class Mail. Note that there will be no change in the First-Class Mail single-piece additional-ounce price of $0.17.
    
    

    Select prices:	2007	2008
    First-Class Mail letter (1 oz.)	$0.41	$0.42
    First-Class Mail letter (2 oz.)	$0.58	$0.59
    Postcard	$0.26	$0.27
    First-Class Mail large envelope (2 oz.)	$0.97	$1.00
    First-Class Mail Intl. to Canada and Mexico (1 oz.)	$0.69	$0.72
    First-Class Mail Intl. to all other countries (1 oz.)	$0.90	$0.94

    
    

Shape-Based Pricing Expands to First Class International

• Just as you now have to select letter, flat or package when shipping First Class Domestic, you will now have to select the shape of the item you are sending. In some cases, the price will improve. Here’s a chart of the change in prices to Group 1 (Canada). The highlighted fields show where prices have decreased:
  
  

  Sample Pricing to Price Group 1:
  Weight Not Over (Ounces)	2007	2008 Letter	2008 Flat	2008 Package
  1	$0.69	$0.72	$0.98	$1.18
  2	$1.00	$0.96	$1.22	$1.42
  3	$1.31	$1.20	$1.46	$1.66

  
  
  Note: First Class International Price Groups will be changing from 5 groups to 9. For a complete listing of new country groups, refer to the U.S. Postal Service’s site.

• Shaped-Based Pricing Review:

  • content
    1. Letters and Postcards:
       • Postcard dimensions:
         • Length of 5^1/2 – 6 inches
         • Height of 3^1/2 to 4^1/4 inches
         • Thickness of 0.007 inch – 0.016 inch
       • Letter dimensions (illustrated below):
         • Length of 5^1/2 – 11^1/2 inches
         • Height of 3^1/2 – 6^1/8 inches
         • Thickness of 0.007 inch – 0.25 inch
       
    2. Flats(Large Envelopes):
       • All flats must be rectangular in shape, uniform in thickness, and flexible.
       • Flat dimensions (illustrated below):
         • Length of 11^1/2 – 15 inches
         • Height of 6^1/8 – 12 inches
         • Thickness of 1/4 – 3/4 inch
       
    3. Packages(Parcels):
       • If a mail piece does not qualify as letter or a flat, it is a parcel.
       • If a mail piece is in a box, is rigid, or is not uniform in thickness, it is a parcel.
       • Parcel dimensions:
         • Length + Girth cannot exceed 108 inches
         • Girth is the measurement (circumference) around the thickest part of the package

USPS Insurance

• Rates for USPS Insurance will be going up this year. To save paperwork and money, we recommend using Endicia’s integrated Parcel Insurance. You can select Parcel Insurance in the Print Window and simply declare the value. You won’t have to fill in any forms unless you have to submit a claim, which is automatically generated and pre-filled for you on our website. As a price comparison, see the table below:
  
  

  Savings with Domestic Parcel Insurance:
  Declared Value	USPS Insurance	Parcel Insurance for Endicia Standard	Parcel Insurance for Endicia Premium and higher plans
  $100	$2.15	$1.10	$0.75

  
  
  For your information, here’s a summary of the price increase for USPS Insurance.
  
  

  Summary of Domestic Insurance Fees
  Amount of Merchandise Insurance Coverage Desired	2007 Fee	2008 Fee
  $0.01 to $50	$1.65	$1.70
  $50.01 to 100	$2.05	$2.15
  $100.01 to 200	$2.45	$2.60
  $200.01 to 300	$4.60	$4.60
  $300.01 to 400	$5.50	$5.55
  $400.01 to 500	$6.40	$6.50
  $500.01 to 600	$7.30	$7.45
  600.01 to 5,000	$7.30             plus $0.90 per $100 or fraction thereof over $600 in declared value (maximum liability is $5000)	$7.45             plus $0.90 per $100 or fraction thereof over $600 in declared value (maximum liability is $5000)

  
  A complete overview of the new pricing is available from the U.S. Postal Service’s web site.

Tips and Hints

The new prices and commercial discounts for online shippers can have a positive impact on your bottom line. Here are some tips to help you maximize the benefits of using the U.S. Postal Service and Endicia.

• Choose Expedited Services:

  • The U.S. Postal Service is offering significant discounts for Express Mail, Priority Mail, Express Mail International, and Priority Mail International. Now is a great time to look at your activity in these areas and take advantage of this win-win opportunity to increase customer satisfaction through faster shipments.

• Assess Multi-Carrier Options:

  • If you use a private carrier for your package shipping, you should evaluate whether the new U.S. Postal Service offerings, including the online commercial discounts and quarterly volume incentives, can trim your transportation costs.

• Use Endicia's Integrated Parcel Insurance:

  • Save paperwork and money with Endicia’s integrated Parcel Insurance. In the event that you do have to submit a claim, you’ll be able to access automatically generated, pre-filled forms on the Endicia website.

• Review Your Packaging Choices:

  • Take a moment to look at why you ship packages and letters in the formats you are currently using. In many cases, if you can change your packaging you can save some money on the new rates.
    • Now, both First Class Mail International and First Class Mail Domestic prices are shape based. If possible, think about folding the contents to make a flat-sized mailer over into a letter-sized mailer.
    • For Priority Mail boxes, consider changing packaging to stay under one cubic foot.
    • Take some time to measure your current supply of shipping boxes. If any of them are over a cubic foot, do they need to be? Could you safely ship your items in smaller boxes?
      • It's a good time to get in touch with your packaging supplier and see if there are other workable options for padding and packing your parcels.
      • Also, look into using variable-depth packaging so you can always fit the container as closely as possible to the contents.

• Use USPS Free Packaging:

  • If you use any of the U.S. Postal Service's wide variety of free packaging options, you don't have to worry about it meeting their requirements for shape-based pricing. Save money and get peace of mind.

• Use Stealth Postage for International Shipping:

  • All of the international shipping classes still come with discounted online rates when using stealth postage. By using Endicia service plans that support stealth postage, you will be able to take advantage of the following discounts:
    • Express Mail International discounted 8%
    • Priority Mail International discounted 5%
    The following Endicia service plans support stealth postage: Endicia Premium, Endicia for Mac, Endicia Professional, and Platinum Shipper. Stealth postage, and hence the international discounts, are not available in Endicia Standard or DYMO Stamps.

• Use Flat-Rate Options, Including International:

  • Flat rate envelopes and boxes are the same price no matter what the weight. Visit http://shop.usps.com to see what options are available. You may be able to save on smaller heavier packages such as books. Keep in mind that there are weight limits for some of the new international flat rates. Weight limits vary for different classes and sizes so make sure you know if there is a limit for what you're using.