2021 US Postal Service Price Change

Price Change January 2021

October 2020

Agenda

Overview Market Dominant ? First-Class Mail? ? USPS Marketing Mail? ? Periodicals? ? Package Services ? Special Services ? Promotions

Overview International Competitive

10/21/2020

Market Dominant Price Change

Cannot exceed change in Consumer Price Index ?

Urban (CPI-U)

Market Dominant price increases are capped at

CLASS LEVEL

Uses previous 4 quarters of volume to calculate price change

6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00%

R2020-1

August CPI Available mid Sept Used for January Adjustment

1.46%

May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20

May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21

May-21 Jul-21 Sep-21 Nov-21

10/21/2020

Actual

Forecasted

First-Class Mail ? 2021 Price Change

1.8% overall increase

? One-ounce letter price unchanged at 55 cents ? Additional-ounce price for Single-piece Letters* increases to 20 cents

Product Single-Piece Letters & Cards Flats Presorted Letters & Cards First-Class Mail International

(outbound letters, cards, and flats)

Percent Change 1.4% 1.3% 2.2%

0.0%

* Additional ounce for Flats remains at 20 cents.

10/21/2020

First-Class Mail ? 2021 Price Change

First-Class Mail Single-Piece Prices

Current Price

Stamp Price 1 Oz.

0.55

Stamp Price 2 Oz.

0.70

Meter Price 1 Oz.

0.50

Single-Piece Additional Ounce - Flats

0.20

Single-Piece Flats 1 Oz.

1.00

Single-Piece Cards

0.35

Share Mail Letters

0.60

Share Mail Cards

0.45

New Price 0.55 0.75 0.51 0.20 1.00 0.36 0.51 0.36

Percent Change

0.0% 6.7% 2.0% 0.0% 0.0% 2.9% -15% -20%

10/21/2020

First-Class Mail ? 2021 Price Change

First-Class Mail Commercial Prices

Mixed AADC Automation Letters

AADC Automation Letters

5-Digit Automation Letters Mixed ADC Automation Flats 2 oz. 3-Digit Automation Flats 2 oz.

5-Digit Automation Flats 2 oz.

Notes: Full Service IMb incentive remains at $0.003. New: Seamless Incentive at $0.001. to eDoc submitter

Current Price

0.439

New Price

0.450

0.419 0.428

0.389 0.398

0.736 0.794

0.597 0.638

0.450 0.480

Percent Change

2.5% 2.1% 2.3% 7.9% 6.9% 6.7%

10/21/2020

Incentive for Seamless Acceptance

? Incentive for mailings submitted under Seamless Acceptance ($0.001 per piece) ? Eligibility criteria

o Seamless Acceptance program (does not include Seamless Parallel) o Must be Full-Service IMB mailpieces o Cards, letters, flats only o First-Class Mail, Marketing Mail, Periodicals, Bound Printed Matter

? Applied to eDoc submitters CRID "the account entering the mail" ? Proposed as an incentive to encourage behavior, not a workshare discount ? Improves efficiency of USPS acceptance process

10/21/2020

Marketing Mail ? 2021 Price Change 1.5% overall increase Product Letters High Density Letters Saturation Letters Flats Carrier Route Flats High Density Flats Saturation Flats EDDM-Retail Parcels

Notes: Full Service IMb incentive remains at $0.003. New: Seamless Incentive at $0.001. to eDoc submitter

10/21/2020

Percent Change 0.8% 5.4% 0.0% 3.6% 3.5% 3.6% 0.0% 0.5% 16.8%

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