RMS Postal Training

RMS
Postal Workout Program
Workout # 6 –
Postage & Payment Methods
Updated - 2013
Response Marketing Services
Knowledge That Delivers
Postal Workout
1.
RMS Introduction & Processes
2.
Mail Classification
3.
Processing Category – Size & Shape
A.
Letter & Postcard
B.
Flat & Parcel
4.
Addressing
5.
Barcodes
A.
Barcode Introduction
B.
Intelligent Mail Barcode, CRID/MID, Business Customer Gateway/PostalOne!
6.
Postage and Payment Methods
7.
Postal Software – Data & List Processing
8.
Reply & Return Mail
9.
Mail Preparation & Distribution
10.
Ancillary Service Endorsements – ASE
11.
Address Change Service – ACS
12.
Canadian Post
13.
International Mail
(Optional)
2
Postal Workout Program
 Workout – Viewing Instructions
– You can view and listen to a exercise in your own timeframe
– The exercise presentation can be paused, stopped, backed up at any
time
– You can do these exercises individually or in groups
– The slides are available as a .pdf that you can print for reference
– Each individual must fully complete the On-line Achievement
Certification Quiz to finish the exercise
– Look for the KEY slide in every exercise
 Provides information on key postal elements that are affected by the exercise
– Postage
– Mailpiece Design
– Barcodes, etc.
 Displays examples of the impact
3
Training Objective
 Types of postage
– Class of Mail
– Piece, Piece and Pound, Zone Prices
– Reply Mail
 Define each payment method
– Precanceled Stamps
– Meter imprint
– Permit Imprint
 Postage Statement
– Business Customer Gateway
4
Postage Prices
Are determined by:
― Class
― Category
― Addressing
― Barcodes
― Distribution
Density
RMS Rate chart is available on insideRRD in the RMS Postal Information Library Link - http://inside.rrd.net/insiderrd/pages/products_services/response_marketing/marketing_programs_for_sales/rms_postal_info_lib/postage.aspx
5
Class of Mail and Postage
 Express Mail®
– Per pound, based on zone and service, or Flat Rate Envelopes/boxes
 Priority Mail®
– Per pound, based on zone, or Flat Rate Envelopes/boxes
 First-Class Mail®
– Per ounce
 Standard Mail®, Commercial and Nonprofit
– Up to 3.3 ounces for the same price
– 3.3 to 15.994 ounces: Piece and pound price
– Drop Shipment Discounts
6
Processing Category and Postage
 Some processing categories have separate prices
 First-Class Mail
– Postcard, Letters, Flats, and Packages
 Standard Mail Commercial and Nonprofit
– Letters, Flats and Marketing Parcels
 Bound Printed Matter
– Flats and Parcels
7
Postage Calculations and Statements
 Mail.dat files are generated in List Processing through the sortation
software
– Information includes job specific data and facility information
 Mail.dat may be modified in Monticello
– Split shipments, drop shipment data, etc.
 Mail.dat files are uploaded to the USPS PostalOne! Site
 The USPS calculates the postage based on the information in the
Mail.dat files.
– There are no more hard copy Postage Statements
– Estimated postage can be obtained before the job is completed
 The files are uploaded and used for USPS acceptance and
verification
8
Express and Priority Mail
 Flat rate packaging available free from USPS
 Postage is paid by weight and zone
 Retail, Commercial, and Commercial Plus prices
– Different qualifications
No separate processing
categories
Except for Flat
Rate packaging
9
Postcard Postage Comparison
First-Class Mail is the only class with Postcard prices
•
•
Standard Mail Commercial
Letter drop shipment prices
(DNDC/DSCF) are less than
First-Class Postcard rates
First-Class
Postcard
5-Digit
0.234
Nonautomation
3-Digit
Barcoded Barcoded
0.246
Mixed
AADC
AADC
0.246
0.258
Presort
Single
Piece
0.330
0.281
Letter Prices
Standard Nonprofit letter prices
Standard
are less than First-Class
Entry
Postcard rates
None
DNDC
DSCF
Consider transitioning to a Standard
Mail Folded Self-Mailer, to obtain
additional Drop Ship discounts and
pick-up additional real-estate to
convey clients messaging.
Automation
Automation
Machinable
5-Digit
3-Digit
AADC
AADC
0.247
0.214
0.204
0.266
0.233
0.223
0.266
0.233
0.223
Nonprofit
Automation
Entry
5-Digit
3-Digit
AADC
None
DNDC
DSCF
0.135
0.102
0.092
0.154
0.121
0.111
0.154
0.121
0.111
Mixed
AADC
0.282
0.249
-
Mixed
AADC
0.274
0.241
0.231
0.290
0.257
-
Machinable
Mixed
AADC
0.170
0.137
-
AADC
0.162
0.129
0.119
Mixed
AADC
0.178
0.145
-
10
First-Class Mail Letters
 3-Digit and AADC same price
– Does not change mail preparation
 Second Ounce free –
–
–
–
–
No additional cost for discounted mail – Automation and Presort
New price for Residual from Auto or Presort Mailings
Third ounce still has 2 increments of $0.125
Nonmachinable Surcharge is still $0.20
First-Class
Letters
Weight
Automation
Not Over
Ounces
5-Digit
3-Digit
Barcoded Barcoded
1
2
3
3.5
0.360
0.360
0.610
0.735
0.384
0.384
0.634
0.759
Single
Piece
From Auto or
Single
Presort Mailings Piece
Machinable Residual
AADC
Mixed
AADC
Presort
0.384
0.384
0.634
0.759
0.405
0.405
0.655
0.780
0.433
0.433
0.683
0.808
0.48
0.48
0.46
0.66
0.86
1.06
11
First-Class Mail – Flats and Packages
 Postage by ounce
 Second ounce is not free
 ADC and Mixed ADC
are separate prices
 No "nonmachinable"
allowed
12
Standard Mail Letters
 Letters
– Automation – ECR and Automation
 Up to 3.3 ounces for the same price
 Heavy Letter Automation between 3.3 and 3.5 ounces: Piece and Pound price
– Nonautomation - ECR, Machinable and Nonmachinable
 Up to 3.3 ounces for
the same price
 3.3 to 15.994 ounces:
Piece and pound price
Standard Mail
Nonprofit has the
same price
categories
13
Standard Mail Flats
 Flats
 Up to 3.3 ounces for the same price
 3.3 to 15.994 ounces: Piece and pound price
Standard Mail
Nonprofit has the
same price
categories
 "Nonmachinable" not allowed
14
Standard Mail Piece and Pound Price
 Two portion postage price:
– Per Piece price PLUS the
– Per Pound price
Standard Mail
Nonprofit has the
same price
categories
 Based on the actual weight of the mailpiece in pounds
 Estimate Postage
– Excel Spreadsheet tool on RMS Postal Information Library
15
Standard Mail Drop Shipment Discounts
 For mail that is prepared, shipped and entered at a USPS Drop Ship
location - The USPS gives a postage discount PER PIECE
 Discount is the same for Standard Mail Commercial and Nonprofit
 Freight is charged per WEIGHT
 The heavier the piece, the less the overall savings
 Monticello/Dynamail, part of our postal processing software,
determines when drop shipment is cost effective
16
Nonmachinable Letter Mail
 Letter mail that is nonmachinable pays more postage
– No Automation rates
Standard Mail
Nonprofit has the
same price
categories
 Standard Mail – separate price list
Standard Commercial
Letters - Nonautomation
For
pieces
3.3
ounces or Entry
less:
None
DNDC
DSCF
Nonmachinable
5-Digit
0.408
0.375
0.365
3-Digit
0.503
0.470
0.460
ADC
0.537
0.504
0.494
Mixed ADC
0.632
0.599
-
 First-Class Mail - Surcharge of $0.20 per piece
 Only on presort and full price
 Flat size cannot be nonmachinable for First-Class and Standard Mail
17
USPS Promotion and Incentive Programs
 OPI (order instructions) must indicate the promotion or incentive discount
– The correct data must be in the Mail.dat file submitted to PostalOne for the
credits/discounts to be applied
– Full-Service does not mean that the client will automatically receive the discounts
for each promotion/incentive
 Credits – reduction of total postage based on the credit earned through a
qualifying count on previous volume
– Earned Value BRM/CRM credit
 Discounts – reduction in postage based on the qualification of the individual
program for items in the mailpiece
– Mobile Barcode promotions
– Emerging Technology promotions
– Picture Permit Imprint promotions
– Other promotions as specified
18
Fees
 The USPS charges fees for the application for a permit imprint number and
obtaining discounted prices
– Permit Imprint application
 $200 one-time fee
 Permit number must be used at least once every 24 months
– Annual Presort Fee
 $200 for Standard Mail
 First-Class Mail fee is covered by one facility fee
 Full-Service IMb annual presort fee waiver – January, 2014
– To qualify - 90% of the mailings under the permit number must be IMb Full-Service
19
Reply Mail Choices
Reply Mail has different postage requirements and prices
A
STAMP
HERE
AC
B
C
PLACE
NO POSTAGE
NECESSARY
IF MAILED
IN THE
UNITED STATES
BUSINESS REPLY MAIL
FIRST-CLASS MAIL
PERMIT NO 1234
CLEVELAND OH
POSTAGE WILL BE PAID BY ADDRESSEE
ABC INDUSTRIES
1220 LAKESIDE AVE E
CLEVELAND OH 44114-1234
Courtesy Reply Mail (CRM)
ABC INDUSTRIES
1220 LAKESIDE AVE E
CLEVELAND OH 44114-9876
Business Reply Mail (BRM)
C
A
NO POSTAGE STAMP NECESSARY
POSTAGE HAS BEEN PREPAID BY
ABC INDUSTRIES
1220 LAKESIDE AVE E
CLEVELAND OH 44114-1234
Meter Reply Mail (MRM)
NO POSTAGE
NECESSARY
IF MAILED
IN THE
UNITED STATES
NO POSTAGE STAMP NECESSARY
POSTAGE HAS BEEN PREPAID BY
ABC INDUSTRIES
1220 LAKESIDE AVE E
CLEVELAND OH 44114-1234
Permit Reply Mail (PRM)
20
CRM, MRM, PRM
 All pay Full First-Class Mail single piece prices
 Mailpiece design requirements
 Courtesy Reply Mail - CRM
– Adhesive Stamp
– Applied by respondent
 Meter Reply Mail - MRM
– Metered with no date
– Preapplied by client/mailer
 Permit Reply Mail - PRM
– Postage prepaid by mailer at the time of mailing
 First-Class outgoing mail only
21
Reply Mail Applications and Fees
 BRM/QBRM
– Application form PS 3615 for Permit Number
 Annual fee of $200
No Fee
 QBRM
– Application Form 6805 to the postmaster or manager, Business Mail
Entry at the Post Office to which the QBRM pieces are to be returned.
 CRM and MRM do not have any applications
 PRM
– Authorization through the district manager of Business Mail Entry at the
office where the permit imprint account is held
22
BRM/QBRM Postage and Fees
 Annual Permit Fee $200
 Two BRM/QBRM groups
– High Volume and Basic
 Accounting Fee annual $635
or quarterly $2,125
 Postage and handling fee
per piece
– Different for BRM and QBRM
 Mailpiece design
requirements
23
Postage Payment Methods
 Standard Mail, Nonprofit, and First-Class Mail postage is paid by:
– Precanceled Stamps
– Meter imprint
– Permit imprint indicia
 Periodicals
– Does not use any of those methods!
24
Mailpiece Design
 Postage Position
– Parallel to the address direction
– Above and to the right of the address area
 Stamps and Meter – upper right corner of mailpiece
 Permit imprints – upper right of the mailpiece or address area
Fishing for You
845 Lure Ln
Walleye, WI 54301
Fishing for You
845 Lure Ln
Walleye, WI 54301
Mr. M.T. Nester
256 Fishing Creek Trl
Retirement, FL 33045-5504
STD
U.S. Postage Paid
Fishing for You
Mr. M.T. Nester
256 Fishing Creek Trl
Retirement, FL 33045-5504
25
Imitation of Postal Markings & Colors
 USPS prohibits use of deliberate imitations of postal markings
– Wording
- Color
– Location
- Numbering
 Examples include: "Express Mail", "Priority Mail", certain
meter designs
 Requires clearance by Direct Mail Specialist
 Green Diamonds are ONLY for First-Class Mail
– Any color of green!
 Other colors may be used for Standard Mail
26
Background Clear Space
 Clear Space
– A clear space must be available on all mail for the address,
postage (permit imprint, postage stamp, or meter stamp),
postmarks, and postal endorsements
 Free of background designs and legible
– Metered mail has a 2D barcode
 All requirements for barcode readability apply
27
Precanceled Stamps
 Precanceled stamps can be used for:
– Presorted First-Class Mail
– Standard Mail Commercial and Nonprofit
1-1/2"
 Background clear area must be allowed to apply stamps:
1-1/2"
– One stamp: 1-1/2" x 1-1/2"
 May only have ONE precanceled stamp per mailpiece
– Stamp with Cancellation: 1-1/2" x 4"
 or more depending on other imprints
28
Precanceled Stamps
 Mailpiece must have a domestic Return Address if not canceled
 Optional to cancel stamps with cancellation mark
 Stamps are purchased in rolls of 500, 3,000 and 10,000 stamps
– Cannot return unused stamps
 Prices:
 Standard Mail
 Nonprofit
10¢
5¢
 First-Class Mail - Postcards: 15¢ Letters and Flats: 25¢
 Difference between the stamp price and final postage is paid
through a permit account with the postage statement
29
Adhesive Stamps
 Adhesive Stamps are:
– Full price First-Class Mail stamps without a price
– Stamps with a price (denominated)
 May use more than one stamp per mailpiece
 Standard Mail and discounted First-Class Mail
– Must be canceled
– Must add up to the amount of the appropriate precanceled stamp
 Full price First-Class mail
– Do not need to be canceled
30
Meter Imprint
 Postage printed directly on envelope
 Background clear area of 3 1/2" x 1 1/2" is required
– More depending on other imprints designs
 Must be legible
– Printed in fluorescent ink
– Check with facility for ink color – red or black
– Must pass barcode background reflectance
 Class Marking in Meter imprint
 Date of Mailing
– Required for First-Class Mail
1 1/2 "
– Not used for Standard Mail
3 1/2 "
31
Permit Imprint Indicia Regulations
 Size
1 1/2"
– Minimum: 1/2" x 1/2"
– Maximum Size 1 1/2" x 1 1/2"
1/2"
 Font
PRSRT STD
U.S.POSTAGE
PAID
ABC CO
PRSRT STD
U.S.POSTAGE
PAID
ABC CO
– Text minimum of 4 point - must be readable
– RMS Standard: UPPER CASE
 Approved Option: Upper/Lower case
 Background
– No copy or patterns in the permit imprint indicia
– No color or a solid color is acceptable
32
Permit Imprint Indicia Elements
1. Class Marking
2. "U.S. Postage Paid"
3. Permit holder information
– Company Style
– Origin Styles
PRESORTED
STANDARD
U.S. POSTAGE
PAID
ALICIAS COOKIE
BAKERY
Strict spelling and punctuation
Rule or box around permit imprint indicia may be omitted
33
Permit Imprint Indicia – Class Marking
 First-Class Mail
– PRESORTED FIRST-CLASS MAIL
– FIRST-CLASS MAIL (Single Piece mailing only)
 Standard Mail
– Commercial Mail
 STANDARD or STD
 PRESORTED STANDARD or PRSRT STD
– Nonprofit Mail
 NONPROFIT ORGANIZATION or NONPROFIT ORG or NONPROFIT
 Package Services
– BOUND PRINTED MATTER or BPM
– LIBRARY MAIL
– MEDIA MAIL
– STANDARD POST
 Priority Mail – PRIORITY MAIL
 Periodicals do NOT use permit imprint indicias
34
Permit Imprint Indicia Styles

Company Style
–
–
–

PRSRT STD
U.S. POSTAGE
PAID
ABC COMPANY
RMS Standard
No permit number or origin shown
Mailpiece must have complete Return Address
Origin Styles
1.
Show City, State of origin

permit number
OR
2. Shows ZIP Code of origin

Presorted
First-Class Mail
U.S. Postage Paid
City, ST
Permit No. nnn
permit number
Strict spelling and punctuation
Rule or box around permit imprint
indicia may be omitted
Nonprofit Org
U.S. POSTAGE PAID
Mailed From ZIP Code NNNNN
Permit No. NNN
35
Permit Imprint Indicia Designs
 Special Designs such as "Eagles", must be USPS approved
– Maximum Size with designs to the left: 1-1/2" x 4"
– Cannot resemble a postage stamp or meter imprint
 References on mailpiece to Expedited Handling require the permit
imprint indicia
– to have class marking bolder or more prominent than other text
– include a clear space of at least 3/8 inch around the entire indicia
PRSRT STD
U.S. POSTAGE PAID
COMPANY NAME
36
Permit Imprint Indicia Application
 Permit number must be purchased
– For postage paid with a Permit Imprint Indicia
– From each post office of mailing
 Unless under the IMb Full-Service waiver
– For each client
 Customer Name on USPS Application form 3615 used to
purchase permit number must match the company name in a
company style permit imprint indicia
Allison's Better Cooking Company
PRSRT STD
PRSRT
STD
U.S.
POSTAGE
U.S. PAID
POSTAGE
PAID
Allison’s
Better
Allison's
Better
ABC COMPANY
Cooking
Cooking Company
Company
37
Permit Imprint Indicia Application
 When obtaining the permit number, on USPS Application 3615,
check all the boxes for
– First-Class Mail, Standard Mail, Package Services and Company
Permit Imprint (section B, item 1)
– There is no additional cost for obtaining the permit number for all the
classes of mail
X
X
X
X
X
38
Permit Imprint Indicia Application
 The Applicant Information needs to be that of the client
– The address that will be linked through their CRID to the permit number
– Preferably the contact person is the client's BSA for that CRID
39
Return Address vs. Permit Holder
Return Name and Address
Permit Holder Name
– From Copy
– From USPS 3615
 Does NOT have to match Permit
Holder Name
 Company Style Permit Imprint Indicia
 Return Address must know where
mailing statements are kept
ABC Company
Allison's Best Confectionaries
Allison's Best Confectionaries
123 Sugar Street
Sweetest, SC 21455-3587
PRSRT STD
U.S. POSTAGE PAID
ABC Company
Delivery Name
Delivery Address
Delivery City, ST ZIP+4
40
Nonprofit - Return Address vs. Permit Holder
Authorization Name
Permit Holder Name
– From USPS Letter
– From USPS 3615
 Return Name/Address, Internal
Name/Address, Check requests
 Company Style Permit Imprint indicia
ABC Org
A Better Contribution ORG
123 Any St
DePere, WI 54115-0080
A Better Contribution ORG
123 Any Street
DePere, WI 54115-0080
NONPROFIT
U.S. POSTAGE PAID
ABC ORG
Delivery Name
Delivery Address
Delivery City, ST ZIP+4
41
Business Customer Gateway
 Electronic way to communicate
with the USPS
– Portal gives a single entry point for
USPS online business services
 All users can interface with the
USPS via Business Customer
Gateway online Portal
 Clients can use the portal for –
– Managing Permits
– Retrieving Mailing Statements &
Reports
– Managing CAPS Accounts
42
Gateway - Mail Preparer Access View
 As a Mail Service Provider we will be able to view mailing
information for the mailings you are preparing, including:
– Postage statements
– Supporting documentation
– Other mail status reports
PostalOne! Dashboard
43
Gateway - Electronic 3602 Statement
Electronic Statement .pdf
 View Postage Statements online
 Download the Postage
Statement as .pdf, Excel or
.csv file
 Use Estimated Postage
statements to review postage
needs
Example of page 1
44
Impact
 Mailpiece Design
– Postage in the incorrect location or unreadable
 Mailing may be denied
 Incorrect postage on the mailpiece
– Additional postage may be needed
– Overpayment may not be refunded
 Depends on how the mailpiece is handled
 Inactive permits
– Mailing is held until permit issues are resolved
45
Training Objective
 Types of postage
– Class of Mail
– Piece, Piece and Pound, Zone Prices
– Reply Mail
 Define each payment method
– Precanceled Stamps
– Meter Imprint
– Permit Imprint
 Postage Statement
– Business Customer Gateway
46
RMS Postal Workout Exercise
RR Donnelley has won the Pillar Bank Friends
program for about 1mm pieces
The package consists of a 2/1 #10 Closed Faced OE,
2 page 2/1 ProteusJet Duplexed Letter w/Lift Note
Mailing as Standard Class - Pillar Bank submits copy
with the following permit imprint
U.S. POSTAGE
PAID
PILLAR BANK
47
RMS Postal Workout Exercise
What would you do next?
48
RMS Postal Workout Exercise
 Using the RMS checklist you discover
that the Permit Imprint does not have
the Class of Mail listed in the permit
area
 Without the Class of Mail, the mailing
can only receive full price First-Class
Mail rates
 You advise Pillar Bank that the permit
copy needs to change to include the
correct Class of Mail requested
 You also advise them that a full return
address is required
49
RMS Postal Workout Exercise
 Pillar Bank agrees to have the permit copy
changed and adds their return address
– The Bank can now receive Standard Mail prices
 Including Drop Shipment discounts at a rate of
$0.033/pc NDC and $0.043/pc SCF
 Participate and receive CoPal Savings
– The difference in postage between Standard Mail
and full price First-Class Mail is over $250,000
50
RMS Postal Workout Exercise
Kingston Animal Society is mailing an Event
Reminder Notice to members that registered for
their “Your Friend” dinner and dancing event.
The Reminder Notice is about 1mm pieces and is a
Postcard Format 4" x 6 1/2" 4pc / 2pc
KAS is expecting to mail at the USPS Postcard Rates
51
RMS Postal Workout Exercise
What would you do next?
52
RMS Postal Workout Exercise
 Using the RMS checklist you identify their requested
format size is larger than the maximum First-Class
Postcard size of 4 1/8" x 5 7/8"
 You provide KAS the following options – Decrease the format size to fit into the First-Class
maximum size
– Mail the same format size card at Nonprofit Letter rates
 Lower postage rates as compared to Postcard rates
– Increase the format size of the card or change to a
Folded Self-Mailer and mail at Nonprofit Letter rates
 Lower postage rates as compared to Postcard rates
53
RMS Postal Workout Exercise
 KAS decides to take advantage of the additional real-estate
and mail a larger card at Nonprofit rates
– KAS can now receive Standard – Nonprofit Mail prices
 Including Drop Shipment discounts at a rate of $0.033/pc
NDC and $0.043/pc SCF
 Participate and receive CoPal Savings
– The difference in postage between Standard – Nonprofit Mail
and Postcard Mail is on average $0.105/pc or $105,000
– RMS has increased revenue due to format change
54
To Complete the
RMS Postal Workout
#6–
Postage & Payment Methods
Please access and complete
the On-line Achievement
Certification Quiz
Thank You !
55