October 2020 USPS® Rate Change
- What You Need To Know

Background and Experience
Speaker: Adam Lewenberg
• President of Postal Advocate Inc.
– The only mail audit and recovery firm in the US and Canada
– Manage a portfolio of 160,000 pieces of mailing equipment for the largest
US companies.
– Speak and teach nationally on mail savings and industry trends.
• Former Industry Co Chair- Boston Postal Customer Council and Mail Systems
Management Association. CMDSS and MDC Certifications.
• Featured Writer for Mailing Systems Technology Magazine.
• Worked for one of the largest mailing vendors for over 17 years
– Director of national sales for presort, tabletop inserters, addressing
hardware/software and green offerings.
– Was one of the top 5 account managers nationally working with some of
the nations top accounts.
September 2, 2020 2

What We’ll Cover:
• What rates are changing
• How this impacts you
• What you need to do
• Savings tips
• USPS Thoughts
September 2, 2020 3
New rates take into effect Sunday October 18,
2020 and go through December 27, 2020
(Temporary Rate Increase)
We will focus on the most common rate structures. For more detail on other mail classes and
services go to USPS Postal Explorer at http://pe.usps.gov/PriceChange/Index

Market Dominant Rates are not changing!
September 2, 2020 4
Weight
Ounces
Prior to
10/18/20
New Rates
10/18/20 % Increase
Prior to
10/18/20
New
Rates
10/18/20 % Increase
1 $0.55 $0.55 0.0% $1.00 $1.00 0.0%
2 $0.70 $0.70 0.0% $1.20 $1.20 0.0%
3 $0.85 $0.85 0.0% $1.40 $1.40 0.0%
6 N/A N/A $2.00 $2.00 0.0%
13 N/A N/A $3.40 $3.40 0.0%
Post Card $0.35 $0.35 0.0%
Letters Flats
First-Class Mail® Retail
Weight
Ounces
Prior to
10/18/20
New Rates
10/18/20 % Increase
1 $0.500 $0.500 0.0%
2 $0.650 $0.650 0.0%
3 $0.800 $0.800 0.0%
Letters
Metered Letters
Weight
Ounces
Prior to
10/18/20
New Rates
10/18/20 % Increase
Prior to
10/18/20
New
Rates
10/18/20 % Increase
Prior to
10/18/20
New
Rates
10/18/20 % Increase
Automation 5 Digit 1 $0.389 $0.389 0.0% $0.430 $0.430 0.0% $0.260 $0.260 0.0%
Automation 3 Digit $0.577 $0.577 0.0%
Automation AADC 1 $0.419 $0.419 0.0% $0.620 $0.620 0.0% $0.270 $0.270 0.0%
Automation Mixed AADC 1 $0.439 $0.439 0.0% $0.716 $0.716 0.0% $0.276 $0.276 0.0%
Presorted (Non Automation) 1 $0.460 $0.460 0.0% $0.810 $0.810 0.0% $0.285 $0.285 0.0%
Commercial First-Class Mail®
Letters Flats* Post Cards
Weight
Ounces
Prior to
10/18/20
New Rates
10/18/20 % Increase
Prior to
10/18/20
New
Rates
10/18/20 % Increase
Automation 5 Digit ≤3.5 $0.259 $0.259 0.0% $0.418 $0.418 0.0%
Automation 3 Digit ≤4 $0.543 $0.543 0.0%
Automation AADC/ADC ≤3.5 $0.284 $0.284 0.0% $0.608 $0.608 0.0%
Automation Mixed AADC/ADC-Origin ≤3.5 $0.299 $0.299 0.0% $0.666 $0.666 0.0%
Marketing Mail®
Letters Flats
• First-Class Mail
• Marketing Mail
• International Mail
• Special Services

Priority Mail Rate Categories
• Retail – At USPS Counter or through
a postage meter.
• Commercial Base – Through a PC
Postage Solution (USPS.com will no longer
qualify for these rates and will default to retail)
• Commercial Plus – Through a
contracted agreement with the USPS.
– Priority Mail® - 50,000 packages
per year across facilities – Rates
are the same as Base
September 2, 2020 5

Priority Mail®
September 2, 2020 6
Most popular USPS® package
service
13 ounce to 70LB items 1-3 day delivery
throughout the US
9 primary zones based on distance.
Highlights
• $.40 increase per Commercial Base parcel
Weight LB's
Prior to
10/18/20
New Rates
10/18/20 % Increase
Prior to
10/18/20
New Rates
10/18/20 % Increase
1 $7.50-14.05 $7.50-14.05 0.0% $7.02-11.40 $7.42-11.80 4-6% (5% Avg)
5 $10.20-40.00 $10.20-40.00 0.0% $8.44-33.57 $8.04-33.17 1-5% (3% Avg)
10 $13.60-68.90 $13.60-68.90 0.0% $9.76-57.94 $10.16-58.34 1-4% (2% Avg)
25 $25-131.05 $25-131.05 0.0% $19.30-104.82 $19.70-105.22 1-2% (1% Avg)
50 $36.05-207.60 $36.05-207.60 0.0% $29.16-165.97 $29.56-166.37 .5-1% (1% Avg)
Flat Rate Envelope $7.75 $7.75 0.0% $7.15 $7.55 5.6%
Legal Flat Rate Envelope $8.05 $8.05 0.0% $7.45 $7.85 5.4%
Padded Flat Rate Envelope $8.40 $8.40 0.0% $7.75 $8.15 5.2%
Small Flat Rate Box $8.30 $8.30 0.0% $7.65 $8.05 5.2%
Medium Flat Rate Boxes $15.05 $15.05 0.0% $13.20 $13.60 3.0%
Large Flat Rate Boxes $21.10 $21.10 0.0% $18.30 $18.70 2.2%
Retail Commercial Base
USPS Priority Mail®
Average % Increase Retail
Commercial
Base
Flat Rate 0% 4%
1-5LB 0% 4%
5-10LB 0% 3%
10-25LB 0% 1%
Over 25LB 0% 1%

Priority Mail® Express
September 2, 2020 7
Up to 70LB items 1 day Guaranteed Delivery
9 primary zones based on distance.
Highlights
• $1.50 increase per Commercial
Base parcel
Weight LB's
Prior to
10/18/20
New Rates
10/18/20 % Increase
Prior to
10/18/20
New Rates
10/18/20 % Increase
1 $25.60-56.10 $25.60-56.10 0.0% $22.74-49 $24.50-53 3-7% (5% Avg)
5 $27.05-91 $27.05-91 0.0% $23.91-77.47 $25.50-83.15 2-6% (3% Avg)
10 $40.75-134.20 $40.75-134.20 0.0% $35.99-114.20 $37.80-122.40 1-4% (2% Avg)
25 $73.85-227.60 $73.85-227.60 0.0% $64.69-195.84 $66.75-211.20 1-2% (1% Avg)
50 $130.85-420.90$130.85-420.90 0.0% $114.61-362.20 $117.15-385.25 .5-1% (1% Avg)
Flat Rate Envelope $25.50 $25.50 0.0% $22.68 $24.25 6.9%
Legal Flat Rate Envelope $25.70 $25.70 0.0% $22.80 $24.25 6.4%
Padded Flat Rate Envelope $26.20 $26.20 0.0% $23.18 $24.75 6.8%
USPS Priority Mail® Express
Retail Commercial Base
Average % Increase Retail
Commercial
Base
Flat Rate 0% 7%
1-5LB 0% 4%
5-10LB 0% 3%
10-25LB 0% 2%
Over 25LB 0% 1%

Savings Tips - Move to Commercial Rates
• Huge discounts over retail rates.
• Free tracking on usps.com.
• Need to process through a PC Postage solution to get the discounts. (Click-N-Ship from the USPS does
not allow for Commercial Rates – Only Retail)
• Multiple vendor options to process packages
• Requires the operator to enter the address and submit to the USPS electronically and create a shipping
label vs. meter tape.
September 2, 2020 8
Average % Increase Commercial Savings over Retail
Flat Rate 5%
1-5LB 17%
6-10LB 22%
11-25LB 23%
Over 25LB 20%
Average % Increase Commercial Savings over Retail
Flat Rate 14%
1-5LB 14%
6-10LB 20%
11-25LB 22%
Over 25LB 19%
USPS Priority Mail®
USPS Priority Mail® Express

First-Class Mail®
Package Service
September 2, 2020 9
Best Savings Opportunity
Less than 1 LB parcels where USPS holds a
Monopoly (Private carriers start at 1LB)
1-3 day delivery
Highlights
• $.25 increase per First-Class Mail – Package Services Commercial parcel
• Save by converting from Retail to Commercial with improved tracking!
Weight
Ounces
First-Class Mail® -
Parcels Retail
First-Class Mail®
- Package
Services
Commercial Savings
Up to 4 $3.80-4.20 $2.99-3.43 18-21%
5 $4.60-5.00 $3.46-3.92 22-25%
6 $4.60-5.00 $3.46-3.92 22-25%
7 $4.60-5.00 $3.46-3.92 22-25%
8 $4.60-5.00 $3.46-3.92 22-25%
9 $5.30-5.75 $4.18-4.71 18-21%
10 $5.30-5.75 $4.18-4.71 18-21%
11 $5.30-5.75 $4.18-4.71 18-21%
12 $5.30-5.75 $4.18-4.71 18-21%
13 $5.90-6.50 $5.29-5.95 8-10%
14 $7.50-9.60 $5.29-5.95 29-38%
15 $7.35-9.30 $5.29-5.95 29-38%
15.999 $7.35-9.30 $5.29-5.95 29-38%
Convert from Retail to Commercial
• Retail rates go up to 13 ounces forcing heavier items to Priority Mail.
Commercial service goes up to 15.999 ounces.

Commercial Savings Examples
September 2, 2020 10
PC Postage starts at
around $15 per month!
Class
Commercial
Savings
Estimated
Current
Spend
Estimated
New Spend Difference
First Class Parcels 23% $250.00 $192.50 -$57.50
Priority Mail (Less than 10LB) 13% $500.00 $435.00 -$65.00
Priority Mail Express (Less than 10LB) 11% $250.00 $222.50 -$27.50
Total $1,000.00 $850.00 -$150.00
Medium
Class
Commercial
Savings
Estimated
Current
Spend
Estimated
New Spend Difference
First Class Parcels 23% $2,500.00 $1,925.00 -$575.00
Priority Mail (Less than 10LB) 13% $5,000.00 $4,350.00 -$650.00
Priority Mail Express (Less than 10LB) 11% $2,500.00 $2,225.00 -$275.00
Total $10,000.00 $8,500.00 -$1,500.00
High
Class
Commercial
Savings
Estimated
Current
Spend
Estimated
New Spend Difference
First Class Parcels 23% $25,000.00 $19,250.00 -$5,750.00
Priority Mail (Less than 10LB) 13% $50,000.00 $43,500.00 -$6,500.00
Priority Mail Express (Less than 10LB) 11% $25,000.00 $22,250.00 -$2,750.00
Total $100,000.00 $85,000.00 -$15,000.00

Additional Rate Change Items
September 2, 2020 11
USPS Increases
Product Planned Increase
Parcel Select Ground $0.40
Parcel Select DSCF $0.40
Parcel Select DNDC $0.40
Parcel Select Destination $0.24
Delivery Unit (DDU) $0.24
Parcel Return Service $0.24
Parcel Select Lightweight $0.24

Thoughts on the USPS News
• The USPS needs help due to drastic decreases in mail volumes. This will continue
as we all mail less in the future.
• Continual pressure about pre-funding pensions and health benefits.
• Limited control to increase rates:
– Consumer Price Index
– Exigent Increases
• Need the flexibility to increase rates or decrease service levels.
• Decent oversight with Inspector General, Board of Governors, Rate commissions,
Oversight industry groups, dedicated postal employees, Congress, media, general
public.
• USPS uses these levers to gain publicity to their plight and to fight for assistance or
flexibility.
• We have the lowest postal rates in the world with the largest postal service.
• Our Postal Service is one of the most trusted federal institutions.
• The media news will minimize over time and the USPS will maintain service levels.
September 2, 2020 12

USPS – Raising rates due to lower mail volumes
September 2, 2020 13
Service Category Current
Compare to
Previous Year Change
Percent
Change Current
Compare to
Previous
Year Change
Percent
Change
4/1/20-6/30/20
Total First-Class Mail 5,516,615 6,104,544 -587,929 -9.60% 12,041,514 13,263,435 -1,221,921 -9.2
Total USPS Marketing Mail 2,437,751 3,874,281 -1,436,530 -37.10% 11,247,373 17,681,521 -6,434,148 -36.4
Total Periodicals Mail 244,710 301,791 -57,081 -18.90% 980,473 1,182,523 -202,050 -17.1
Total Package Services Mail 214,479 184,835 29,644 16% 140,962 135,784 5,178 3.8
Total 8,413,555 10,465,451 -2,051,896 -20% 24,410,322 32,263,263 -7,852,941 -24%
1/1/20-3/31/20
Total First-Class Mail 6,420,138 6,537,750 -117,612 -1.8 14,255,575 14,406,800 -151,225 -1
Total USPS Marketing Mail 3,751,525 3,844,747 -93,221 -2.4 17,049,120 17,652,326 -603,207 -3.4
Total Periodicals Mail 265,485 298,024 -32,539 -10.9 1,020,818 1,163,044 -142,226 -12.2
Total Package Services Mail 200,466 211,109 -10,643 -5 141,807 158,572 -16,766 -10.6
Total 10,637,614 10,891,630 -254,015 -2% 32,467,320 33,380,742 -913,424 -3%
10/1/19-12/31/19
Total First-Class Mail 6,771,913 6,933,099 -161,187 -2.3 14,515,399 15,101,517 -586,119 -3.9
Total USPS Marketing Mail 4,425,562 4,677,793 -252,231 -5.4 20,313,444 22,054,872 -1,741,428 -7.9
Total Periodicals Mail 286,754 310,657 -23,903 -7.7 1,109,478 1,198,058 -88,580 -7.4
Total Package Services Mail 206,134 219,059 -12,925 -6% 153,958 173,878 -19,920 -11%
Total 11,690,363 12,140,608 -450,246 -4% 36,092,279 38,528,325 -2,436,047 -6%
7/1/19-9/30/19
Total First-Class Mail 5,883,314 6,030,992 -147,678 -2.4 12,855,264 13,323,131 -467,868 -3.5
Total USPS Marketing Mail 4,010,288 4,104,979 -94,691 -2.3 18,301,327 19,084,033 -782,705 -4.1
Total Periodicals Mail 283,604 296,202 -12,598 -4.3 1,090,993 1,139,106 -48,113 -4.2
Total Package Services Mail 206,009 206,238 -229 0% 153,333 159,106 -5,773 -4%
Total 10,383,215 10,638,411 -255,196 -2% 32,400,917 33,705,376 -1,304,459 -4%
12 Month Totals 41,124,747 44,136,100 -3,011,353 -7% 125,370,838 137,877,706 -12,506,871 -9%
Revenue Pieces
https://about.usps.com/what/financials/

Ballot Mail is a Small % of USPS Totals
September 2, 2020 14
First Class-Mail® Current
Estimate
Pieces per day
Daily Change
from Previous
Quarter Reason for Spike
4/1/20-6/30/20 12,041,514,000 154,378,385 -28,385,397
1/1/20-3/31/20 14,255,575,000 182,763,782 -3,331,077 Tax and Financial Reporting
10/1/19-12/31/19 14,515,399,000 186,094,859 21,283,782 Holiday Mailings - December
7/1/19-9/30/19 12,855,264,000 164,811,077
Total Ballots (Estimate from 2016 Election) 130,000,000
Vote by Mail (Estimate) 50%
Total Vote by Mail 65,000,000
People who vote 2 Weeks or more ahead (Absentee) 20%
Remaining ballots mailed in the last 2 weeks 52,000,000
10 mailing days to make sure items are delivered - ballots per day 5,200,000
Average First-Class Mail® delivered per day in Oct-Dec 2019 186,093,833
Election Mail as a percentage of total 2.8%
Election Ballot Estimates

What you need to do:
If you have a mail machine, make sure you
download the new rates before October 18,
2020 when the rates take into effect
Here are links to the different meter vendors:
• FP:
http://www.fp-usa.com/ratechange/
• Neopost/Hasler:
http://www.neopostusa.com/resources/rate-change-
information
• Pitney Bowes:
http://www.pitneybowes.com/us/postal-information/rate-
change-info.html
• Stamps.com:
https://stamps.custhelp.com/app/answers/detail/a_id/1685/
~/january-2017-usps-rate-changes
Go to the USPS Postal Explorer website for more information:
http://pe.usps.gov/PriceChange/Index
September 2, 2020 15
Download the Postal
Advocate Rate
Comparison Guide –
www.postaladvocate.com

Helping multi-location
organizations streamline
their mailing costs
Over 160,000 pieces of
equipment, managed
by Postal Advocate
Recovered over
$18,000,000
in lost postage, vendor
overcharges and fees
ENTERPRISE-WIDEMAILAUDITANDRECOVERY
OVER $66,000,000 IN CLIENT SAVINGS
$1.9M
57%
Average Client
Savings
Average Equipment
Savings
HOW WE DO IT
• 175+ years of industry experience
• Comprehensive web-based tool
providing visibility of all mail
and equipment spend
• Time Savings - Assistance
in fleet management
visit www.postaladvocate.com or call (888)977-MAIL(6245)

Sign Limited Agency
Agreement/Kick-Off Call.
Provide copies of vendor
invoices, AP export,
location list,
equipment inventory list.
Present savings opportunities
and get client approval.
Postal Advocate provides
ongoing support,
manages renewals, billing
and vendor compliance.
Provide enterprise visibility of
all spend, costs and
documented savings
through enterpriseAdvocate.
Provide client log-in.
1 2
3
4 5 6
HOW IT
WORKS
Work with current vendor to build population
report, contract terms/start/end dates,
postage volumes, costs.
Analyze spend, check for contract
compliance, billing errors, vendor
fees/overcharges, lost postage.
Identify savings opportunities.
Submit vendor credit requests,
lost postage forms and
eliminate avoidable fees.
Negotiate pricing. Create catalog.
Work with locations -
asset validation, rightsize, termination…
Full implementation of savings.
visit www.postaladvocate.com or call (888)977-MAIL(6245)
Conduct Analysis
NO COST – AUDIT PHASE CONTRACTED CLIENT

Upcoming Webinars
The Future of Mailing – Virtual On Demand Mailing
September 23, 2020 – 11:00AM EST
Register through www.postaladvocate.com
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