Direct Marketing Price

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Direct Marketing Price

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75% of the height for mail destined outside the province of deposit ... Combine container labels with Admail Delivery Slip for both laser and thermal labels ... – PowerPoint PPT presentation

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Title: Direct Marketing Price


1
Direct Marketing Price Service
Changeseffective January 11, 2010
2
Agenda
  • Direct Marketing (DM) Price Changes
  • Product / Service Changes
  • Reminders!
  • Questions?

3
Pricing Rationale
  • Pricing must adequately reflect Canada Posts
    costs to operate the postal service
  • Growing point of call network (gt 200k per year)
  • Costs continue to rise
  • Core earnings continue to fall rapidly
  • Must reinvest in aging network infrastructure to
    maintain long term sustainability
  • Keeping increases as low as possible while
    offsetting cost pressures
  • Lowest rate increase over the last five years
  • Moderate price increase, typically 1

4
Price Changes
Addressed Admail
  • Letter Carrier Presort (S/L)
  • 1 cent increase to base price
  • Residue increase of 2 cents
  • Weighted average of 2.6 (4.0 in 2009)
  • Letter Carrier Presort (O/S)
  • 1 cent increase to base price
  • Residue 2 cents increase on up to 500g weight
    band
  • 2.5 increase on Up to 500g weight band (4.3
    in 2009)
  • 1.9 increase on 500g to 750g weight band
    (introduced in 2009)
  • 3.0 increase on 750g to 1.36kg weight band
    (introduced in 2009)

5
Price Changes
  • Addressed Admail (contd)
  • Machineable Mail (S/L)
  • Maintain Machineable Mail prices to continue
    customer conversion to Machineable Mail
    presort (new Presorted Machineable Mail option
    planned for January 2011)
  • 0-30g remains at 0.38 per item 1 cent (-2.6)
    decrease in 2009
  • 30g to 50g remains at 0.40 per item 1 cent
    (2.6) increase in 2009
  • Weighted average increase of 0 (-1.2 in 2009)
  • Machineable Mail (O/S)
  • 1 cent (1.8) increase up to 500g from 0.57 to
    0.58 per item
  • Weighted average increase of 2.4 (0 in 2009)

6
Price Changes
  • Addressed Admail (contd)
  • NDG (S/L)
  • Weighted average increase of 2.2 (4.7 in 2009)
  • NDG (O/S)
  • Weighted average increase of 2.4 (introduced two
    new weight bands in 2009)
  • Dimensional Addressed Admail
  • Price increase on all categories Small, Medium
    and Large items
  • Weighted average increase of 2.4 (2.5 in 2009)
  • Small 2.6 increase (3.3 in 2009)
  • Medium 2.7 increase (2.8 in 2009)
  • Large 2 increase (1.9 in 2009)

7
Example Typical Addressed Admail Customer
  • Annual volume of 10.4M pieces, 100 LCP S/L, 0
    50g

2009 2010 ? 09-10 Impact Impact
Total Postage Cost (LCP S/L 0 -50g) 3,830,000 3,934,000 104,000 2.7
LCP S/L ARP 0.368 0.378 0.01 2.7
1 increase
8
Price Changes
  • Addressed AdCard
  • Weighted average increase of 1.2 (2.6 in 2009)
  • Prices unbundled effective July 6, 2009, the
    production and postage components will be
    separated
  • Unaddressed AdCard
  • Weighted average reduction of 0.4 (5.1 in 2009)
  • Prices unbundled effective July 6, 2009, the
    production and postage components will be
    separated
  • Customers can use their annual volume discount,
    as applicable
  • Business Reply Mail (BRM) and International BRM
  • Increase to Annual Fee 4.2 from 600 to 625
    (0 in 2009)
  • Increase of 2.8 to Domestic and Intl return
    postage (2.4 in 2009)

9
Price Changes
  • Publications Mail
  • Letter Carrier Presort
  • One cent increase across all price points up to
    500g
  • Four cent increase for items over 500g
  • Weighted average price increase of 2.4 (3.2 in
    2009)
  • Machineable Mail (S/L)
  • One cent increase for items up to 50g
  • Weighted average increase of 1.8 (1.9 in 2009)
  • Machineable Mail (O/S)
  • One cent increase for items up to 100g and
    over 100g up to 500g
  • Discontinuing over 500g up to 750g weight band
    due to low usage and manual processing
    requirements (aligning to Addressed Admail)

10
Price Changes
  • Publications Mail (contd)
  • Undeliverable Publications Mail (uPM)
  • Three cent increase on per item fee from 1.05 to
    1.08 or 2.9
  • uPM Return Postage - overall weighted average
    price increase of 2.4
  • 0 to 100g and 100 to 200g 3
  • 200 to 500g gt500g 7
  • Increase in incremental weight charges for
    gt500g 5 per kg

11
Example - Typical Publications Mail Customer
  • Annual volume of 3.5M pieces, 100 LCP National,
    0 200g

2009 2010 ? 09-10 Impact Impact
Total Postage Cost / Impact (LCP) 1,580,000 1,615,000 35,000 2.2
LCP ARP 0.451 0.461 0.01 2.2
1 increase
12
Price Changes
  • Unaddressed Admail
  • Overall weighted average increase of 2.0 (6.4
    in 2009)
  • Basic category Weighted average increase of
    1.5 (reflects impact of Transportation fees)
  • Non-contract prices 3.6 increase
  • Contract prices 3.8 increase
  • Premium category Weighted average increase of
    3.4 (reflects impact of Transportation fees)
  • Non-contract 4.5 increase
  • Contract 5.3 increase
  • 33.3 reduction in Transportation Fees from 1.2
    to 0.8 up to 50g (plan to incorporate fee
    within the postage price over a three year
    period)

13
Example - Typical Unaddressed Admail Customer
  • Annual volume commitment of 30M pieces, Basic,
    weighing 0 50g

2009 2010 Impact Impact
Total annual postage cost / impact (excl. Transportation) 2,610,000 (_at_ 0.087 / piece) 2,700,000 (_at_ 0.090 / piece) 90,000 3.4
Total Transportation Cost / Impact 360,000 (_at_ 0.012 / piece) 240,000 (_at_ 0.008 / piece) -120,000 -33.3
Total postage cost / impact (incl. Transportation) 2,970,000 2,940,000 -30,000 -1.0
14
Service ChangesJanuary 11, 2010
15
DM Service Changes
Upcoming Equipment Changes
  • Effective Fall 2009
  • Combine container labels with Admail Delivery
    Slip for both laser and thermal labels via the
    new Business Desktop
  • Effective December 31, 2009
  • The supply of Canada Post bags to customers for
    use within Unaddressed Admail will be
    discontinued
  • Effective January 11, 2010
  • CPC will no longer accept Unaddressed Admail in
    bags
  • Customers who continue to use bags after this
    date will have their mailings refused upon
    induction and will only be accepted once made
    compliant

16
DM Service Changes
  • Recent product changes to support customer
    transition include
  • Effective June 22, 2009
  • Extend use of Canada Post hard-sided containers
    to all Unaddressed Admail customers
  • Allow Canada Post reusable plastic pallets for
    use as a shipping unit when transporting
    containerized Unaddressed Admail, Addressed
    Admail, Dimensional Addressed Admail and
    Publications Mail
  • Remove the requirement to sign a Memorandum of
    Agreement (MOA) to access reusable plastic
    pallets for Unaddressed Admail, Addressed Admail,
    Dimensional Addressed Admail and Publications
    Mail
  • Eliminate the 2 reusable plastic pallet usage
    fee for Unaddressed Admail, Addressed Admail,
    Dimensional Addressed Admail and Publications
    Mail

17
DM and TM Service Changes
  • Recent Product Changes (contd)
  • Adjust size of laser container labels within EST
    to accommodate hard-sided container label holder
  • Allow nesting of hard-sided containers without
    lids in monotainers (Level 1 only 50 fill
    requirement), for Unaddressed Admail, Addressed
    Admail, Dimensional Addressed Admail,
    Publications Mail and Presort Lettermail
  • The new monotainer fill requirements for
    Unaddressed Admail
  • must be at least 50 of the height of the
    monotainer for mail destined within the province
    of deposit and,
  • 75 of the height for mail destined outside the
    province of deposit
  • The new container fill requirements for
    Unaddressed Admail
  • at minimum 80 full if more than one container is
    going to the same destination at the exception of
    the last container

18
Container alternatives within Unaddressed Admail
Options for Small to Medium size mailings
Flats Tub
Lettertainer
Customer supplied containers (boxes)
Flexipack pouch
Brick-piling
New Introduced Flexipack pouches in January 2009
for mailings prepared and deposited at a Delivery
Installation or consolidated in a City level (NPS
L2) Monotainer when only one Flexipack pouch is
destined to each Delivery Facility. Extended
use of Canada Post Hard-sided containers
(Lettertainers for Standard items and Flats
Tubs for Oversize items) to all Unaddressed
Admail customers. Reduced minimum brick-piling
height requirement from 500mm to 150mm (January
12, 2008).
19
Container alternatives within Unaddressed Admail
Options for Larger size mailings
Customer supplied containers (boxes) on wooden
pallet
Canada Post reusable plastic pallets (free)
Hard-sided containers on wooden pallet
Nested hard-sided containers
Double-stacked Monotainers/Pallets
New Extended the use of Canada Post reusable
plastic pallets to Unaddressed Admail customers
(June, 2008) and extended the use of pallets as
shipping units when transporting mailings in
hard-sided containers (effective June 22,
2009). Removed the requirement to sign a
Memorandum of Agreement to access Canada Post
reusable plastic pallets and eliminated the 2
usage fee (effective June 22, 2009). Allowed
nesting of hard-sided containers without lids
when prepared in a direct to the Delivery
Facility (NPS Level 1) monotainer (effective June
22, 2009).
20
DM Service Changes
  • Bag Exit Addressed Admail Publications Mail
    (December 31/10)
  • Bag Exit initiative currently underway within
    Unaddressed Admail will be extended to
    Publications Mail and Addressed Admail
  • Containerization options include brick-piling,
    lettertainers and flatstubs
  • Eliminating bags as an option for mail
    containerization will
  • Address employee health and safety issues
  • Improve mail processing efficiency
  • The supply of Canada Post bags to customers for
    use with Publications Mail and Addressed Admail
    will be discontinued on December 31, 2010
  • Publications Mail and Addressed Admail will no
    longer be accepted in bags effective January 10,
    2011

21
Alternatives for Addressed Admail Publications
Mail
Options for Small to Medium size mailings
Coming soon!
Brick-pile to Level 5 - Residue (conditions
apply)
Flats Tub
Lettertainer
Customer supplied containers (boxes)
Loose bundles at Retail
Brick-piling (Oversize items only)
January, 2008 - Reduced the minimum brick-piling
height requirement from 500mm to 150mm (Local)
and 300mm (Forward). Coming Soon! - Accept loose
bundles (double-strapped or shrink-wrapped) and
no minimum fill requirement will apply when only
one hard-sided container is deposited at a rural
post office or retail counter. Coming Soon!
Extend brick-piling to Level 5 (Residue) when NDG
or LCP Publications Mail items (O/S) do not fit
in the current Flats Tubs.
22
Alternatives for Addressed Admail Publications
Mail
Container options for Larger size mailings
Canada Post reusable plastic pallets (free)
Hard-sided containers on wooden pallet
Double-stacked Monotainers/Pallets
Nested hard-sided containers
New! Introduced Canada Post reusable plastic
pallets to Addressed Admail and Publications Mail
customers in January 2008 and extended the use of
pallets as shipping unit when transporting
mailings in hard-sided containers (June 22,
2009). Removed the requirement to sign a
Memorandum of Agreement to access Canada Post
reusable plastic pallets and eliminated the 2
usage fee (June 22, 2009). Allowed nesting of
hard-sided containers without lids when prepared
in a direct to the Delivery Facility (NPS Level
1) monotainer (June 22, 2009).
23
DM and TM Service Changes
  • Machineable Mail testing enhancements Provides
    customers with 3 windows of opportunity to
    assess/test mail piece during the
    creative/production process
  • 1. Early Stage Assessment Machineability Test
  • Customers can refer to a checklist, available on
    the Canada Post website, to help ensure the
    machineability of the mail piece during mail
    piece creation
  • 2. Mid-Stage Assessment Machineability Test
  • Customer can submit an electronic sample of their
    mail piece by leveraging the CSN as a single
    point of contact
  • CSN (Mail Standards and Testing, as required)
    conduct an assessment and provide feedback to
    customer including opportunities for improvement
  • Turnaround time approximately 48 hours
  • 3. Final-Stage Assessment Readability Test
    Final Mail Piece
  • The existing assessment of 200 identical samples
    remains
  • CSN will be the single point of contact with the
    customer
  • Turnaround time reduced from 5 days to 3 days or
    less

24
DM and TM Service Changes
  • Increasing Machineable Mail (S/L) Acceptance
    Sites / Locations
  • Currently seventeen (17) published and approved
    RVUs accepting Machineable Mail (S/L)
  • Effective January 11, 2010, four new induction
    locations (from 17 to 21) will be added to the
    approved / published list
  • Toronto Bulk Mail Facility (BMF) - Gateway
  • Toronto West Letter Processing Plant - Gateway
  • Kitchener
  • Thunder Bay

25
DM and TM Service Changes
  • Address Accuracy Changes
  • The Statement of Accuracy (SOA) changes include
  • SEPR software will identify / flag any rural or
    apartment addresses with missing delivery address
    components
  • Apartment addresses with missing apartment number
    information will be identified as Questionable
    Apartment Addresses
  • Rural addresses with missing key address
    components such as an RR will be identified as
    Questionable Rural Addresses
  • Rural and apartment types have high instances of
    undeliverable mail
  • If customers choose to update their lists they
    can either correct the Questionable addresses
    or remove them from the mailing list
  • Note the Questionable Addresses will not
    impact the Address Accuracy percentage

26
DM Service Changes
  • Allow Repositionable Notes on S/L and O/S
    Machineable Mail
  • Addressed Admail (including AdCard) and
    Publications Mail
  • Option extended to Machineable mailings at no
    additional fee
  • To be acceptable, the repositionable note must
  • Meet maximum dimensions of 3 x 3 (size
    restriction applicable to Machineable Mail only)
  • Be applied by machine (not manually)
  • Not show any fluorescence or phosphorescent
    printing
  • Meet the Postal Standards

27
Heads-up to DM and TM Customers
New Business Desktop Launch Fall 2009
  • Provides a modernized platform using industry
    standard technology to enable Canada Post to grow
    and adapt the application
  • Usability enhancements include a more intuitive
    application and a simplified and streamlined
    end-user experience
  • Improved user workflow to complete Orders
  • Context sensitive help
  • Combine container labels with Admail Delivery
    Slip for both laser and thermal labels
  • Convenient mailing functionality such as
    folders, templates and wizard tools to import
    and manage mailing
  • Flexible reconciliation process, and
  • Reliable integration for multiple users

28
Reminders!
29
Reminder!
  • Plant Receiving Re-engineering - LCP Addressed
    Admail and Publications Mail - Mailing Plan File
    Import and Container Label Requirements
  • Reminder of important requirements effective July
    20, 2009
  • The Mailing Plan must be uploaded into EST for
    LCP Addressed Admail and LCP Publications Mail
    mailings.
  • The barcode or associated human-readable data
    must be included on containers labels and tie on
    bag tags for LCP Addressed Admail and LCP
    Publications Mail. The new barcode and
    human-readable data is also required on all
    monotainer and pallet labels if brick-piling is
    the method of preparation used.
  • The label size has been modified to accommodate
    the changes to the container label
    specifications. New container label
    specifications are available at
    canadapost.ca/tools/pg/labels
  • Surcharges applicable to non-compliant items have
    been deferred to January 11, 2010

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