Parcel - April 2008 - (Page 22)

NEW PRICING, NEW OPPORTUNITIES USPS’s overnight and two-day products will be ‘priced to sell’ By Gary Reblin he Postal Act of 2006 was the biggest change to postal operations in three decades. And the Postal Service is about to leverage its new ﬂexibility under the law to aggressively go after a bigger share of the domestic and international shipping market. Postmaster General Jack Potter recently announced internally a series of new initiatives designed to boost Express Mail, Priority Mail, ground services and international products. In May, new prices will be in place to enable the Postal Service to better compete in the marketplace. USPS’s overnight product, Express Mail, and its two- and three-day product, Priority Mail, are now both under a new Expedited Mail group. For the ﬁrst time ever, the Postal Service will be offering price incentives. Add this to the beneﬁts of the products, and 22 Spring 2008 it is really something attractive for customers. The products will be priced to win more customers. The ﬁrst-ever price incentives give the Postal Service’s overnight and two-day products competitive advantage, especially for lighter-weight packages. Customers that send Express Mail packages through ClickN-Ship or other online channels will get three percent off. Customers will also get price incentives based on volume; those who ship as few as two packages per day, on average, will be eligible for rebates. Those sending 15 packages a day will get a 10% price break. For Priority Mail, price reductions up to 11% are possible through a combination of online and volume discounts. Under the old system, in nearby delivery zones — where most overnight products are sent — Express Mail’s ﬂat rate was more expensive than the competition. As of May 12, that’s ﬁxed. The result? For packages under ﬁve pounds, Express Mail will be less expensive than the competition in every zone in the US. This new pricing structure, combined with other enhancements to service, means that the Postal Service will be better able to seize market share. Telling customers about the product’s built-in benefits will help, as well. www.PARCELindustry.com T http://www.PARCELindustry.com

Table of Contents Feed for the Digital Edition of Parcel - April 2008

PARCEL - April 2008 Contents Editor's Note Moving Forward Recycling for Safety’s Sake Want Some Good News? Negotiations Have No Finish Line... Lowering your Parcel Shipping Costs Meeting Industry Challenges New Pricing, New Opportunities Time to Track It’s Scan-tastic! 10 Recycling Facts The New USPS Law Changes New Law, New Opportunities for Package Shippers A Diamond in the Rough Seven Shipping Trends for 2010 ...and Beyond The Move Update Changes A Simple Shipping Solution A Case Study in Efficiency New Products and Services Industry News Advertiser Index

Parcel - April 2008

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