2010 June

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VISIT US AT WWW.SAPATODAY.COM Southeastern Advertising Publishers Association (931) 490-0400 (931) 490-0488 fax 1 SAPAToday Advancing the free paper industry by providing resources for success and venues for sharing ideas. THE MONTHLY NEWSLETTER FOR THE FREE PAPER INDUSTRY JUNE 2010 Board of Directors e leadership of SAPA is in good hands. e board of directors, director, and assistant are listed with contact information. Page 3 e Power of a Freebie Match the power of a free offer in your ads to the target customers and you’ll succeed. Page 3 Conference Schedule Join SAPA and IFPA in the Music City, Nashville, Tennessee on September 23 - 25, 2010. Plan now to attend this Megevent! Page 9 Should you upgrade to Adobe CS5? Our executive director, Douglas Fry, looks at the newest offering from Adobe. Page 5 e Sales Manager’s Dilemma Landy Chase of Char- lotte, NC explores how to effectively manage and measure your sales force efforts. Page 7 In e Mailbox Donna Hanberry talks about the different programs and policies at the US Postal Service and how they will effect you. Page 10 by James Lorenzen “Jim, I was out in the field trying out all those things I just learned at that ‘Can Retail Adver- tising Pay’ conference last month; and the in- formation was great, but it didn’t seem to make much of a difference? I’m still geing the same results!” “Oh! You aended CP?” “Yeah! But, I can’t figure out why none of this stuff is really working!” “Go figure. What sessions did you aend?” “All the advertising sessions. Let’s face it, the economy is down and we need to generate some ad revenue!” “So, what did they say?” “Well, now that I think about it, it’s prey much what I hear every time I pay the tuition to aend Are You Really Selling? Or Just Arguing? one of these things.” “Like what?” “Well, one speaker talked about how we’re in a recession and that if a merchant cuts back on ad spending, the consumer will begin believ- ing that the merchant must be struggling; so it hurts the merchant’s image not to advertise.” “I see...” “Another speaker said that if the merchant isn’t talking to his customers, it’s like stopping a con- versation with them.” “at can’t be good.” “No. And, another speaker talked about how one of the biggest problems he sees is just plain lousy ads that don’t work!” “at’s never good, either. So, what did all these speakers suggest?” “Well, the last one said the ads should tell the consumer WHY they should buy.” “at seems reasonable. Anything else?” “Mostly, it was all the stuff I told you… about how we can make merchants more aware of the need to advertise and why it’s more important now than ever.” “Important to who?” “Huh?” “Was there any discussion about learning about the merchant’s business goals for the next three to five years? “No.” “Did they talk about discovering what the mer- chant had been doing in the past and uncover- ing the strategic marketing problems the mer- chant had been experiencing? “Well, they did talk a lile about the past, but the strategy part was all about coverage and that kind of stuff.” “Did they discuss tying marketing and advertis- Southeastern Advertising Publishers Association continued on page 2

description

SAPAToday our association newsletter

Transcript of 2010 June

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V I S I T U S A T W W W . S A P A T O D A Y . C O M

Southeastern Advertising Publishers Association (931) 490-0400 (931) 490-0488 fax 1

SAPATodayAdvancing the free paper industry by providing resources for success and venues for sharing ideas.

THE MONTHLY NEWSLETTER FOR THE FREE PAPER INDUSTRY JUNE 2010

Board of DirectorsThe leadership of SAPA is in good hands. The board of directors, director, and assistant are listed with contact information.Page 3

The Power of a FreebieMatch the power of a free offer in your ads to the target customers and you’ll succeed.Page 3

Conference ScheduleJoin SAPA and IFPA in the Music City, Nashville, Tennessee on September 23 - 25, 2010. Plan now to attend this Megevent!Page 9

Should you upgrade to Adobe CS5?Our executive director, Douglas Fry, looks at the newest offering from Adobe.Page 5

The Sales Manager’s DilemmaLandy Chase of Char-lotte, NC explores how to effectively manage and measure your sales force efforts.Page 7

In The MailboxDonna Hanberry talks about the different programs and policies at the US Postal Service and how they will effect you.Page 10

by James Lorenzen

“Jim, I was out in the field trying out all those things I just learned at that ‘Can Retail Adver-tising Pay’ conference last month; and the in-formation was great, but it didn’t seem to make much of a difference? I’m still getting the same results!”

“Oh! You attended CRAP?”

“Yeah! But, I can’t figure out why none of this stuff is really working!”

“Go figure. What sessions did you attend?”

“All the advertising sessions. Let’s face it, the economy is down and we need to generate some ad revenue!”

“So, what did they say?”

“Well, now that I think about it, it’s pretty much what I hear every time I pay the tuition to attend

Are You Really Selling?Or Just Arguing?

one of these things.”

“Like what?”

“Well, one speaker talked about how we’re in a recession and that if a merchant cuts back on ad spending, the consumer will begin believ-ing that the merchant must be struggling; so it hurts the merchant’s image not to advertise.”

“I see...”

“Another speaker said that if the merchant isn’t talking to his customers, it’s like stopping a con-versation with them.”

“That can’t be good.”

“No. And, another speaker talked about how one of the biggest problems he sees is just plain lousy ads that don’t work!”

“That’s never good, either. So, what did all these speakers suggest?”

“Well, the last one said the ads should tell the consumer WHY they should buy.”

“That seems reasonable. Anything else?”

“Mostly, it was all the stuff I told you… about how we can make merchants more aware of the need to advertise and why it’s more important now than ever.”

“Important to who?”

“Huh?”

“Was there any discussion about learning about the merchant’s business goals for the next three to five years?

“No.”

“Did they talk about discovering what the mer-chant had been doing in the past and uncover-ing the strategic marketing problems the mer-chant had been experiencing?

“Well, they did talk a little about the past, but the strategy part was all about coverage and that kind of stuff.”

“Did they discuss tying marketing and advertis-

Southeastern Advertising Publishers Association

continued on page 2

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Southeastern Advertising Publishers Association (931) 490-0400 (931) 490-0488 fax 2

Selling - Arguinging strategy to achieve long-term goals?”

“No.”

“Was there any talk about how to use question-ing to uncovering the merchants wants, needs, desires, and dissatisfactions? The merchant has to have a reason to buy, too, you know.”

“No. It was all about what we should TELL them to get them to advertise. You know, all the benefits of advertising.”

“Those sound like arguments, not solutions.”

“Yeah, I guess…”

“So, did they offer any suggestions on getting new advertisers?”

“Yes, they did! They talked about using web-sites, online advertising, some pay-per-click ideas.”

“Product stuff?”

“Yeah, I guess. They also recommended using special sections to introduce new advertisers into the publication, and offering them dis-counts as an incentive!”

“There’s a shock. And if the lousy ads they talk-ed about don’t work the first time?”

“Well, I guess the merchant cancels and figures the discounted ad didn’t work.”

“So, if the discounted ad didn’t work, they figure they go can sell the merchant on the full-price ad working better sometime later?”

“Yeah, I guess so.”

“So, then you’re back to square-one, except now you have a merchant who’s already tried your publication – at a discount - and had a bad ex-perience!”

“Yeah, but we TOLD the merchant that adver-

tising is a process, not an event. One-time ads may or may not work. We believe in long-term advertising.”

“But you’re not committed to it. You just want the merchant to be committed to it.”

“Well, I...”

“You honestly believe what you’re saying; but, you’ll take the money, anyway, is that it?”

“Hmmm, I never thought...”

“So we TELL the merchants all the reasons they should advertise, then sell them a one-time discounted ad in a special section to get them started.”

“Yeah, some people need to put their toe in the water first.”

“And, then?”

“Well, we hope we can get them to stay!”

“We do this by?”

“Well, we tell them again all the reasons they need to advertise and show them our next spe-cial section.”

“Are you really selling - or just making argu-ments?”

“What do you mean?”

“Here’s something you need to know: Sell-ing isn’t arguing. Selling is teaching. Selling is problem-solving. Selling is helping your client or customer do the right things the right way. If YOU aren’t committed to it, you’ll never have a client or customer who is. You’ll always be little more than another sales rep pretending to care, but not truly committed to it, and they will know it.”

“Yeah, I never thought of it that way. I guess

you’re right.”

“Of course I’m right! I’m always right. I’m right even when I’m wrong – just ask my wife! Anyway, open rate selling is a crap-shoot! You’re gambling with your merchant’s money – the very person you’re trying to develop a long-term relationship with, based on trust I might add, and this is the person you’re trying to add value for?”

“Yeah, but it’s their money!”

“You’ve been spending too much time at CRAP. If you really want to learn, go to SAPA’s conven-tion in Louisville.”

James Lorenzen has been the headline speaker more than 500 association and corporate conven-tions worldwide (see www.jameslorenzen.com). He successfully founded, built, and sold five successful publications of his own. In six years of ad sales, he never sold a one-time ad, selling campaigns only – 80% for a full year or longer - and all without a media kit! He is CEO of Gardner Hathaway, LLC, an international training and organiza-tional development consultancy based in Moor-park, CA. See www.gardnerhathaway.com or call 805.265.5418.

continued from page 1

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Southeastern Advertising Publishers Association (931) 490-0400 (931) 490-0488 fax 3

PresidentRussell

QuattlebaumSoutheast Sun

Enterprise, AL 334-393-2969

Vice PresidentTony OnellionBargains PlusSlidell, LA

985-649-9515

Past PresidentGreg Ledford

Shelby Shopper & Info

Shelby, NC 704-484-1047

TreasurerAlan Lingerfelt

The Piedmont Shopper

Danville, VA434-822-1800

Board MemberWill ThomasExchange, Inc.

Fayetteville, TN 931-433-9737

SecretaryCaroline

QuattlebaumSoutheast Sun

Enterprise, AL 334-393-2969

Executive Director

Douglas FrySAPA Headquarters

Columbia, TN931-490-0400

Board MemberJW Owens

SGS Publications, Inc.Keystone Heights,

FL 863-634-8499

Past PresidentGary Benton

Peddler ADvantageParis, TN

731-644-9595

Administrative Assistant

Vickie BeldenSAPA Headquarters

Columbia, TN931-490-0400SA

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Lead

ersh

ip The single common denominator of men and women who achieve great things is a sense of destiny.

Brian Tracy

By John Foust, Raleigh, NC

Recently, I ran across two interesting ads in the same paper. Each ad made use of one of the most effective tactics in the marketing toolbox – a free offer. The first ad was for an insurance company, and promised a free key ring – with built-in flashlight – to anyone who called for an estimate on car insurance. The second ad offered a free Mini Cooper automobile with the purchase of a high-end condo.

Obviously, there is a huge difference – in significance and cost – between a new car and a key ring. However, even though these offers are worlds apart, they have a lot going for them. Here’s what we can learn from these two examples:

1. Make it relevant. The insurance ad targeted an older audience, a fact which was clearly stated in the ad. The real estate ad was aimed at hip, young professionals – the audience that also fits the profile of Mini buyers. That was no coincidence.

The Power of a Freebie

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Southeastern Advertising Publishers Association (931) 490-0400 (931) 490-0488 fax 4

An offer has to be relevant to the target audience. The condo buyers would not pay attention to a key ring offer. And a Mini would have zero importance to senior readers.

Even though the flashlight feature may seem cumbersome and unnecessary to some readers, that feature makes the key ring particularly desirable for seniors. Many older people have difficulty finding keyholes at night.

The condo developer probably considered a variety of models, once he or she decided to give cars away. But I have a hunch that the choice was quickly narrowed by the fact that the Mini’s “coolness factor” would make a statement about the personality of the development. If you’re cool – or if you want to be cool – this is the place for you. It’s clearly an offer that appeals to their Yuppie audience.

2. Be a matchmaker. The value of the giveaway should match the action you want readers to take. A freebie that accompanies a purchase should be more expensive than a gift that rewards an inquiry. And of course, the bigger the purchase, the bigger the giveaway.

A car is an eye-popping gift – big enough to stop readers in their tracks. A key ring is small. But that’s okay, because each offer is a good match.

3. Keep it fresh. If an advertiser offers freebies all the time, the tactic will eventually lose its appeal. To produce results, a free offer should seem special – and create a sense of urgency. (“Respond now, before we run out of these handy widgets.”)

Each offer should seem new and different, not the same old thing. For years, a business magazine to which I

subscribe made the same renewal offer – a free pen. Ho hum. They finally changed their tune, and their most recent subscription notice offered additional issues at no extra cost. That offer is much better.

Although free offers have been around for years, they continue to motivate consumers to take action. The secret is to think it through – and make the right offer to the right audience.

(c) Copyright 2010 by John Foust. All rights reserved. E-mail John Foust for information about his training videos for ad departments: [email protected]

Southeastern AdvertisingPublishers Association

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Southeastern Advertising Publishers Association (931) 490-0400 (931) 490-0488 fax 5

Adobe CS5:Upgrade or Wait?by Douglas Fry

Adobe just released version 5 of their Cre-ative Suite. Most people that I talk to are using CS2 or sometimes CS3. So, is CS5 worth the wait? Should you upgrade? Read on and find out.

SAPA headquarters updated our CS4 to CS5 but it didn’t go very well. When I tried to install the software I could not enter the serial number that came with the upgrade. So, I called Adobe Technical Support. Ado-be is, apparently, headquartered in Pakistan now because I wasn’t able to speak to any-one whose primary language was English. After over an hour on the phone, multiple support analysts, and them taking over my computer with no good results, they hung up on me. So much for customer support.

I restarted my computer and CS5 installed like it was supposed to. So, I had no excuse for not trying out the new, improved Cre-ative Suite.

My first project was this newsletter. SA-PAToday isn’t that demanding, graphically speaking, so I thought I’d “cut my teeth” on it.

When you first start CS5 you’ll notice a

cool, new splash screen. Was it worth $599? Nope. So, I kept digging. After the program started the first thing I noticed is that In-Design CS5 is slower than CS4. When I clicked on the File menu it took a second or two to drop down. Now understand, this is NOT on an old, tired computer. This is on a new Quad Core iMac with 8 GB of RAM and a 2 TB hard drive. I expected better.

To be fair, the slowness only lasted for the first menu drop-down. After that it seemed as fast as CS4. Speed aside, the big question is “Should I recommend upgrading or hold-ing off?” I want to be fair to our friends at Adobe so here are the nice features added to CS5.

Handling graphics is much improved over previous versions. In the past you had to make sure you were using the right tool to manipulate a graphic. The Selection Tool and the Direct Selection Tool did different things and could be confusing. CS5 is smart-er and responds with the correct tool based on what you do. As the photo at the right shows, you now have a target that

shows up when you move your cursor over a graphic. If you want to resize, you simply click. If you want to move it around inside a frame you double-click. It’s pretty nice.

The next new feature that I tried was the Flash animation feature. You can select any-thing on your page, open the Animation palette, and apply the animation you want. You can view your work by clicking on the Preview button or by calling up the Preview palette. It works pretty nicely. You can go to the SAPAtoday.com website and see a useless animation that I created. Just click on the Events page.

Since Adobe and Apple are fighting over whether Flash animations are de-monic or angelic, I’m not sure how useful Flash animation capability is in InDesign. But it’s a nice feature just in case it turns out to be Angelic.

The last feature is the Gradient Feather tool. It’s a cool feature that allows you to, wait for it, Feather a Gradient.

If you think the features I’ve listed are worth $599 then buy the update right now. If you think you can wait, you’re probably right. Originally I thought I’d recommend up-grading if you are using any version before CS4. Now, I’m saying, “Unless you see a must-have feature in CS5, wait.”

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Southeastern Advertising Publishers Association (931) 490-0400 (931) 490-0488 fax 6

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Southeastern Advertising Publishers Association (931) 490-0400 (931) 490-0488 fax 7

The Sales Manager’s Dilemmaby Landy Chase

How does a manager properly measure the effectiveness of his/her sales people? Most would point to level of productiv-ity. Fair enough. What, exactly, does be-ing “productive” mean for a sales person? Does one measure productivity through activity or results?

Most managers measure activity. They equate productivity with demonstrated effort. The logic here, “selling is a num-bers game,” is that if enough activity is performed, acceptable results will follow. They then establish effort-based weekly or monthly standards, such as making a minimum number of calls, having a mini-mum number of appointments, etc., and they monitor the amount of production in these categories. In theory, this sounds like a good idea, but in practice it does not work very well. You see, selling is a skill, not simply a task. So, the inherent flaw in measuring activity is that you are measuring work ethic, not ability.

To illustrate, let’s as-sume you have two sales people on staff, Fred and Jane. Fred makes twenty-five cold calls every single day. Jane contacts twenty-five well-researched, qualified prospects – but does so only once per week. Based on activity tracking, it would appear that Fred is much more “produc-tive” than Jane. After all, the activity re-ports show that Fred is working five times as hard as Jane is. So the natural conclu-sion one might reach from this data is that Fred is the more productive sales person.

In reality, it is just the opposite. You see, Fred gets only three qualified appoint-ments a week from his efforts and closes one in six; Jane gets four appointments per week with her efforts – in one-fifth of the time, no less - and closes three out of four. Much of the remainder of Jane’s time is spent analyzing customer needs and developing customized proposals, while Fred “pitches” and pursues one-call-clos-

es. The bottom line: Jane’s sales results blow Fred’s out of the water.

Yes, Fred has a great work ethic, but so what? Jane is much more productive. Fred is a hard worker, but Jane is, too – and what’s more, she is highly efficient. Jane’s business model far outstrips Fred’s where it counts – bringing in business. Who do you now say is the better performer? So much for measuring “activity.”

In the present economic climate, the name of the game in sales is efficiency – getting more done in less time. It doesn’t really matter, as in Fred’s case, how many prospects your sales person sees a week, if few of those calls actually result in new sales. Being incompetent in this type of work will, unfortunately, undermine the best work ethic.

The conclusion I reach is that activ-ity tracking is not a management tool so much as an exercise in baby-sitting. Why should you have to look over a sales per-son’s shoulder to ensure that they are do-ing what they are supposed to be doing, anyway? Who has time for that? I sure don’t.

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continued on page 8

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Furthermore, if you must use ongoing monitoring to ensure that you are getting adequate effort from your sales team, or, worse - you have to force, threaten, cajole, or otherwise push your sales people to do what they need to be doing - your prob-lem is not how to manage productivity.

Your problem is that you are hiring the wrong people.

To hire the right ones:

· Stop hiring for experience. Unless you are in a very technical business, you can teach a motivated new-hire to sell.

· Hire people who are hungry. Unfortu-nately, you cannot teach a new-hire to be motivated. Motivation comes from within.

· Hire self-starters. People who have started, or attempted to start, their own business are an excel-lent source of sales talent. I could care less whether or not they succeeded.

· Have a defined sales process. You have a responsibility to the employee to teach them how to succeed in sales in your busi-ness. If you don’t, the performance prob-lem is not them – it is you.

· Coach in the field. You cannot develop people – and get results - by staying in the office. Spend 30% of your time, mini-mum, on calls with your reps. Mentor them, and teach them by example.

· Act. Put unmotivated underperformers on probation. They will leave as soon as

The Sales Manager’s Dilemma continued from page 7

they realize that you won’t tolerate their lack of effort. In other words, they will become motivated – to find another job where they can continue to underper-form.

So, what about Fred?

Sales people who try hard but lack skill will continue to struggle, irrespective of their work ethic, until such time as they learn how to do the job well. Fred, in spite of his sales numbers, may well be a keep-er, because he is making the effort. In fact, Fred lacks only skill, which is correctable. Your responsibility with the Freds on your team is to ensure that they get the tools and training needed to succeed. If you have, as with Fred, a motivated per-son who wants to learn, you have the key ingredient for selling success.Landy Chase, MBA, CSP is an expert who specializes in speaking to corporations and associations on professional selling and sales manage-ment topics. His new book, Competitive Selling , is now available for pre-order on www.amazon.com. To book Landy for your next sales meeting , visit his website at www.landychase.com or call (800) 370-8026.

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Southeastern Advertising Publishers Association (931) 490-0400 (931) 490-0488 fax 9

Super Conference Sept. 23-25, 2010: Plan now for a great conference in 2010. IFPA will join with SAPA in Nashville, Tennessee at the beautiful Hilton Downtown. We selected a hotel right in the heart of downtown, located next to the Country Music Hall of Fame. You will experience the energetic, unique nightlife as well as a trip to the Gaylord Opryland Hotel if you haven’t been there before. You’ll sample some

Conference Schedulesof the best the South has to offer as well as an educational, entertaining, and exciting schedule of events. Now, more than ever, you’ll benefit from attending this upcoming conference. Call Douglas Fry at 1-800-334-0649 for more info.

Revenue Summit: “What’s The Idea?” - July 31, 2010 IFPA presents a unique new opportunity for you to share and receive new revenue

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Southeastern Advertising Publishers Association (931) 490-0400 (931) 490-0488 fax 10

There has been a flurry of news, reports, and hearings taking place about the Postal Service. There are lots of moving pieces and everything is in play. The House and Senate have been conducting hearings on the future of the Postal Service and the postal business model. The USPS Office of Inspector General (OIG) report has finally made elected officials sit up and take notice of how postal ratepayers, and the Postal Service, have been overcharged $75 billion in over-funding Postal Service pensions. The Postmaster General is now on record that a “fix” of the $75 billion pension overpayment would free the Postal Service from the need to seek a reduction in delivery days from 6-day to 5-days (at least for the near future) and could even eliminate or reduce the need for an exigency rate case. Meanwhile, the General Accounting Office (GAO) released its report on the Postal Service under the 2006 Postal Reform Law. The GAO told Congress that the Postal Service’s business model “is not viable” and stated that the Postal Service needed more flexibility to reduce its compensation and benefit costs (still making up 80% of the total costs of the Postal Service) and to reduce its operation and network costs.

While the House and Senate Oversight Committees are busy taking testimony on the future of the Postal Service, the Postal Regulatory Commission (PRC) is also dealing with a full Docket of cases. In March, the Postal Service filed a request with the PRC for an advisory opinion on

its request to reduce the required days of delivery from 6-days to 5-days. The PRC expressed a desire to have a complete and public record. Describing itself as the “watch dog agency that determines if the Postal Service meets its Universal Service Obligation to the nation” the Commission invited members of the general public, both informally and as part of a more formal, technical hearing, to submit testimony and input. The Commission set up a schedule of field hearings in seven different US cities to invite public comment. The time table for the PRC’s review schedule will continue until October 2010. Postmaster General John E. Potter and some in Congress express “disappointment” that this time table was faster. If the PRC and general public shows the same range of emotions (from suspicion to hostility) that the Postal Service has faced with its 5-day proposal from many on the Hill, it may not matter to the Postal Service that the hearings are expected to take until October.

The House Oversight hearings contain statements by elected officials that were clearly opposed to any reduction in the Postal Service’s days of service. Many of the Congressional representatives pressed the witnesses to address whether the reduction in service would be needed if the Postal Service got the $75 billion overpayment exposed in the OIG report. Postal observers noted that these hearings showed a growing awareness, and appreciation, for the $75 billion over-funding issue and how no other

government agency, or private company, is subject to the aggressive health care pre-funding obligations of the USPS.

Although the Senate Oversight Committee was more receptive to discussing long-term changes the Postal Service might need to make in its days of delivery and operations and retail network to survive a changing communications environment and reduction in volumes, the Senate also pointedly asked the Postmaster General how long the Postal Service could remain financially stable if it had access to the overpayment funds identified in the OIG report. The Postmaster General confirmed to the Senate Oversight Committee that the release of the funds identified as overpayments in the OIG report would give the Postal Service another five to seven years of financial stability. The Senate hearings included testimony from Postmaster General John Potter; the USPS Inspector General, David Williams; Postal Regulatory Commission Chair, Ruth Goldway and Phillip Herr from the Government Accountability Office. The Subcommittee invited an association witness to present the views of ratepayers to be added to the Senate hearing record. A statement was prepared by the Association for Postal Commerce (PostCom) a trade association that represents the interests of those who use the mail for business communication and commerce. The PostCom testimony appeals to Congress to correct the $75 billion over-funding identified in the OIG report. The testimony stresses that the chief problem facing the Postal Service is not a decline in volume. The Postal Service’s losses are not due to changes in mailing habits and reduced mail volumes. They are due to the

In The Mailbox

Justin Gerena, President, Director of Salesp: 888.592.3212 x710e: [email protected]

JB Multimedia, Inc. P.O. Box 704 N. Bellmore, NY 11710 888.592.3212 phone/fax www.jbmultimedia.net

M a k i n g p u b l i c a t i o n s i n t e r a c t i v e.

continued on page 11

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obligations imposed on the Postal Service by the Postal Accountability and Enhancement Act (PAEA) requiring a staggering pre-funding payment of over $5 billion a year for retiree health costs. The Postal Service is also hampered by legacy costs that have been inequitably imposed on the Postal Service and mailers. These inequitable financial burdens have created a crisis of confidence - causing mail users to question if the Postal Service will survive. In the face of the fear of large rate increases and uncertainty, mailers are reassessing their business models and are reaching out to other communications and distribution channels. This is increasing the risk of a downward spiral for the USPS and in turn, unfunded obligations for the US Treasury.

The PostCom testimony stresses that the Postal Service does not have options available to it that a private company could seek in similar circumstances. The Postal Service does not have the legal flexibility to modify or renegotiate its wages and benefits. It cannot file for bankruptcy or reorganization. The testimony reveals how Congress has used the Postal Service, in the past, as a cash cow to shift obligations that are rightfully the debts of the federal government or the taxpayer to the Postal Service and ratepayers. PostCom urges Congress to move promptly to fix the Postal Service’s financial problems by adopting the methodology contained in the OIG report. If mailers must continue to pay inefficiently high postal rates, and face a network with declining service, burdensome and cost-shifting regulations, they will look for other, lower cost, non-postal alternatives. The Postal Service, the mailing industry, and the contribution each make to the national economy, is at risk unless swift action is taken.

Additional hearings on the future of the Postal Service and needed changes in the law are expected throughout the spring and summer. Any action that Congress does, or does not take, on the OIG report and the health care retiree costs will have an impact on postal ratepayers.

EXIGENCY

Rumors of a potential exigency rate filing continue to circulate in Washington. The latest Beltway gossip is that the Postal Service is preparing to file an exigency case in the “mid-level” single digits in July 2010. Speculation about an exigent filing is that the Postal Service would seek a general rate increase “averaging” in the six to eight percent range. It is anticipated that products that are not covering their current costs, like periodicals and certain catalogs, would see higher increases.

An exigency rate case would be like the old, traditional rate cases. It would take 90 days for hearings before the PRC. It would be very contentious. Some associations and mailers are already vowing to fight any exigency case on principal. It is argued that an exigency case is only proper if the Postal Service faces a severe emergency or extraordinary event, like Anthrax. Gradual changes in communication practices, and even a recession, are not the basis for an exigency rate filing.

PRC Chair, Ruth Goldway, in addressing a meeting of mailers, acknowledged rumors that an exigency case could be filed as early as July 2. She commented that someone could sue and let the courts decide if a rate filing in today’s conditions meets the intention of an “exigent” case under the PAEA.

No one is expecting a rate increase in 2010. But an exigency filing in July would provide the Postal Service with enough time after a decision to issue new rates and regulations and give mailers enough time to change software for an increase as early as January 2011.

SALES AND INCENTIVESDuring the April 2010 Postal Forum, the Postal Service President of Mailing and Shipping Services, Bob Bernstock, described a number of pricing and product innovations under consideration by the Postal Service. Of greatest interest for saturation mailers, was the announcement that the Postal Service would continue an ongoing volume incentive for saturation mail. Bernstock stated the incentive would be expanded to include a high density category. It is

anticipated that this incentive would not go into effect until October 2010, after the completion of the summer sale. As of the writing of this column, there were no further details or proposals available on this announced incentive. Like any change in rates, contract rates or incentive, the details of any program would need to be submitted to the PRC for prior approval.

Bernstock described other ideas the USPS is pursuing in partnerships with individual mailers and companies. The USPS announced a series of postage paid greeting cards it is developing with Hallmark. Some other comments and observations that were made by Bernstock at the Forum suggest directions the Postal Service is considering for the future. Bernstock stated that the Postal Service had learned a lot from its incentive programs and sales. He commented that the service has concluded that seasonal sales are good but year-long sales are better. Many commentators suggested this should tell the Postal Service that it would be better to permanently lower certain prices to stimulate volume rather than experimenting with limited, lower impact, sales or gimmicks.

Bernstock also promised that the Postal Service was developing some incentives for added weight. He stated that a revised pricing offering for catalogs was being developed that might allow one or two ounces of additional weight per piece without an incremental increase in postage. He also described a first class promotion that would allow a reply card to ride free with an enclosed business reply mail envelope within a first class mailing. The mailer would only pay postage based on the weight of host piece.

We will continue to keep you posted on any sales, incentives, or changes in rates and rate design announced by the USPS.

SUMMER SALE FINAL RULESOn April 21, 2010 the Postal Service published its final rule on the summer sale. Information on the summer sale is available on the USPS web site or at http://pe.usps.com/FederalRegisterNotices.asp.

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Just in case you missed it. The March of Dimes ran an 8 inch by 13.5 inch “Thank you” ad to all March for Babies sponsors, teams, and supporters. The ad ran in USA TODAY on April 22, 2010 and the PaperChain logo was displayed as a media sponsor. PaperChain is also getting recognition on the March of Dimes websites as a sponsor. “Thank you” to all the papers that ran information about the March for Babies. Together we make a huge difference.Brian,I wanted to tell you about a very successful ad buy we received this past week as a result of our participation in the SRDS program. Allegiant Air, a Las Vegas based discount airline is opening up a new market in a neighboring town 40 miles away, and because we are listed as a publication that serves that DMA, we were able to secure an ad buy. When I spoke with the agency representing the airline and asked ‘how’ they discovered our publication, she mentioned the SRDS Listing.I am sure we have had other orders from our SRDS listing but it is often difficult to pinpoint the listing as the sole factor in the media buy. I would

Report

encourage the many member publications to ask media buyers ‘how they heard about their publication’ and I am certain they would soon realize that a listing in the SRDS database is an irreplaceable source for new revenue.Sincerely,Jay LenkersdorferPublisher, The Weekly Mailer & News Journal - Burley, Idaho

While manning the PaperChain booth at the April AFCP conference in Tucson, a publisher came up to me and said that she has a binder that contains every Link and Learn form PaperChain. When she hires a new sales person, she loans them the binder and instructs the new hire to read the articles over the next several weeks. You can do the same thing. Most of you have not saved the Link and Learn articles but you can go online and download them. Just go to www.paperchainnetwork.net and click on Link and Learn at the top. A drop down box will appear and you can select from the various groups of articles. (Group 1 is the first link) Each new article is added to this website. The URL above is a website designed for the members of PaperChain. This is the place to find the information for the member papers. PaperChain and your fellow publishers are extremely interested in hearing from you if you have received advertising because of Standard Rate and Data Service. We will feature your publication in future PaperChain Updates. Please email me at [email protected] or call me at 800-248-4061.

Newspapers:MakeMoneywithMobileCoupons, Text Blasts, NewsAlerts andMoreNewspaper Partners can create significant and recurring revenue with Mobile Coupons andTexting. HometownMobile Marketing is now offering ourWhite Label platform toNewspaper properties across the country. Learn from our newspaper publishing experience onhow you can benefit from offering your customers Mobile Coupons, Text Blasting, NewsAlerts, up-to-date High School Prep Sport scores and more.We supply you with a turn-key,user-friendly platform where you manage your own customers and collect the revenue from your customers. Our program has no set up cost. This istruly a great revenue source for our industry to take advantage of it before someone else comes to your market. Sign up today and sell tomorrow!Your customers will receive:• Blasts /Alerts: Send text messages to opt-in users. Keep consumers informed of promotions, offers & events.• Mobile Coupons: Distribute coupons to potential customers who have opted-in to receive your promotions.• Data Collection and Surveys: Collect valuable information from consumers through a survey.• Custom applications: Utilize the HometownMobile Marketing Center automated platform to build any custommobile messaging campaign.We would be happy to schedule a webinar to show you how the product and program works. The papers and clients we have signed up so far areextremely pleased with the program and results. If you would like further information please let us know.And we cannot stress enough how simplethis program is to use! Douglas Fry, your Executive Director of SAPA, has given us your association’s support.We look forward to working with you!Your partners in business,Ken Ubert, President | Jon Fuchs,Account Manager262.512.5011 262.512.5029About us: HometownMobile Marketing, a division of Hometown Communications, is an affiliate of Hometown Publications-Express News, the publisher of 11 freeweekly newspapers and 6 coupon books in Southeastern Wisconsin. We are now an approved Circulation Verification Council (CVC) vendor for Mobile Marketing, andusing our platform will give the CVC audited papers the option to report to CVC audited numbers under the Mobile Marketing category. We are excited to be workingwith our own industry to provide a revenue source that requires no investment from the papers.

262.238.6397 | [email protected] |www.HometownMobileMarketing.com

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2010 IFPA/SAPA ConferenceSeptember 23 - 25, 2010

Hilton Downtown, Nashville, TennesseeCompany Name _____________________________________________________________________

Address ___________________________________________________________________________

City ______________________________________ State ______________ Zip Code ______________

Contact Name _______________________________________________________________________

Phone (______) ____________________________ Fax (_____) _____________________________

Email _____________________________________________________________________________

Southeastern AdvertisingPublishers Association

Southeastern AdvertisingPublishers Association

Please print the following information as you’d like it to appear on your name badge. Make additional copies of this

form as needed.

Name ___________________________________

Title ____________________________________

E-mail ___________________________________Confirmation materials will be sent to this e-mail address

❍ Management ❍ Sales ❍ Graphics

Name ___________________________________

Title ____________________________________

E-mail ___________________________________Confirmation materials will be sent to this e-mail address

❍ Management ❍ Sales ❍ Graphics

Name ___________________________________

Title ____________________________________

E-mail ___________________________________Confirmation materials will be sent to this e-mail address

❍ Management ❍ Sales ❍ Graphics

Name ___________________________________

Title ____________________________________

E-mail ___________________________________Confirmation materials will be sent to this e-mail address

❍ Management ❍ Sales ❍ Graphics

Name ___________________________________

Title ____________________________________

E-mail ___________________________________Confirmation materials will be sent to this e-mail address

❍ Management ❍ Sales ❍ Graphics

Name ___________________________________

Title ____________________________________

E-mail ___________________________________Confirmation materials will be sent to this e-mail address

❍ Management ❍ Sales ❍ Graphics

SAPA members qualify for

REDUCED HOTEL RATESNO CHARGE FOR MEALS

NO REGISTRATION FEES!Please act now:

1- Call the hotel (615) 620-1000 and make your reservations, tell them you are with IFPA/SAPA. Or, register online at:

www.sapatoday.com/events.htmlYou’ll be quoted a rate of $159 per night. SAPA will buy down your room to $99 per night.

2- Fax the completed registration form to 931.490.0488

SPACE IS LIMITED • REGISTER TODAY!

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Because our data, based on the most stringent verification guidelines in the industry, delivers results. Results that protect the viability of all kinds of publications and put publishers ahead of the pack.

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With the data and credibility a CVC audit brings, you’ll get a true picture of your market. You’ll gain the knowledge needed to better position yourself against competitors for advertising revenue. And, you’ll arm media buyers and advertisers with the numbers they need to buy with confidence. Count on it.

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