+ All Categories
Home > Documents > 2009 July

2009 July

Date post: 16-Mar-2016
Category:
Upload: douglas-fry
View: 213 times
Download: 1 times
Share this document with a friend
Description:
SAPAToday our association newsletter
Popular Tags:
10
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 JULY 2009 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 Communicate With Heart John Foust shows how important it is to not only know your facts but communicate them with heart. Page 3 Conference Schedule Have you made your plans for Louisville, KY on August 28 & 29, 2009? If not, read about the upcoming conferences in our industry. Page 7 e ABCs of Selling Our featured speaker in Louisville is Joe Bonura. In this article Joe goes through the ABCs of sell- ing. He only gets to D but you’ll get great ideas. Page 5 Sell To Yourself Richard Clark teaches how we need to be sold on our own products before we try to sell someone else. Page 6 USPS Update Donna Hanberry with the Saturation Mailers Coalition brings us up-to- date on what is being proposed and offered by the United States Postal Service. Page 8 Five Management Shortcomings that Un- dermine Revenue Growth The new environment for selling news- paper advertising requires skilled, ex- perience sales people – business part- ners who can analyze a customer’s business and put together multi-media reach programs that get optimal results. No newspaper can meet this customer expectation with a group of perpetu- ally changing, inexperienced ad reps. Newspapers who suffer the most from declining revenue also seem to have the most sales team turnover. Why is this such an issue for most properties, and what can be done to stop it? e Real Cost of Employee Turnover Many publishers and ad directors claim that they are losing people to job op- portunities that pay better. Certainly this is true in some cases. My experi- ence, however, is that people who are successful in their jobs will not look for employment elsewhere. More of- ten, the problem with turnover can be traced to managerial shortcomings within the organization. Below are five correctable problems that have an ad- verse effect on retention and sales per- formance: • Poor hiring practices. According to a recent research project published by the University of Florida, 55% of peo- ple in sales cannot sell; 25% are sell- ing the wrong thing; and the remaining 20% sell 80% of the business. Source: Greenberg and Greenberg Research These statistics support my observa- tions in the field with newspapers. A significant portion of the sales em- ployees that I encounter aren’t sales people at all – they are good people in the wrong job occupation. Specifically, they are “farmers,” not “hunters.” They manage a desk. They process incoming leads. They confuse order-taking with growing ad revenues through a proac- tive marketing effort. Management has a responsibility to match job candidates to positions in which they can succeed. In advertising sales, this means hiring job candidates who are ca- pable of running a small business. When a hiring mistake is made, the employee is eventually punished (terminated) for an error made by the sales manager. Southeastern Advertising Publishers Association continued on page 2
Transcript

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 JUly 2009

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

Communicate With HeartJohn Foust shows how important it is to not only know your facts but communicate them with heart. Page 3

Conference ScheduleHave you made your plans for Louisville, KY on August 28 & 29, 2009? If not, read about the upcoming conferences in our industry.Page 7

The ABCs of SellingOur featured speaker in Louisville is Joe Bonura. In this article Joe goes through the ABCs of sell-ing. He only gets to D but you’ll get great ideas.Page 5

Sell To YourselfRichard Clark teaches how we need to be sold on our own products before we try to sell someone else. Page 6

USPS UpdateDonna Hanberry with the Saturation Mailers Coalition brings us up-to-date on what is being proposed and offered by the United States Postal Service.Page 8

Five Management Shortcomings that Un-dermine Revenue Growth

The new environment for selling news-paper advertising requires skilled, ex-perience sales people – business part-ners who can analyze a customer’s business and put together multi-media reach programs that get optimal results. No newspaper can meet this customer expectation with a group of perpetu-ally changing, inexperienced ad reps. Newspapers who suffer the most from declining revenue also seem to have the most sales team turnover. Why is this such an issue for most properties, and what can be done to stop it?

The Real Cost of Employee Turnover

Many publishers and ad directors claim that they are losing people to job op-portunities that pay better. Certainly this is true in some cases. My experi-ence, however, is that people who are successful in their jobs will not look for employment elsewhere. More of-ten, the problem with turnover can be traced to managerial shortcomings within the organization. Below are five correctable problems that have an ad-verse effect on retention and sales per-formance:

• Poor hiring practices. According to a recent research project published by the University of Florida, 55% of peo-ple in sales cannot sell; 25% are sell-

ing the wrong thing; and the remaining 20% sell 80% of the business. Source: Greenberg and Greenberg Research

These statistics support my observa-tions in the field with newspapers. A significant portion of the sales em-ployees that I encounter aren’t sales people at all – they are good people in the wrong job occupation. Specifically, they are “farmers,” not “hunters.” They manage a desk. They process incoming leads. They confuse order-taking with growing ad revenues through a proac-tive marketing effort.

Management has a responsibility to match job candidates to positions in which they can succeed. In advertising sales, this means hiring job candidates who are ca-pable of running a small business. When a hiring mistake is made, the employee is eventually punished (terminated) for an error made by the sales manager.

Southeastern Advertising Publishers Association

continued on page 2

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 2

The Real Cost ofEmployee TurnoverSolution: Newspapers must do a bet-ter job of training their managers to hire properly. If your managers learn to make consistently good hiring decisions, most organizational performance problems will diminish or simply disappear.

• Lack of a structured training pro-gram. I recently received a phone call from a sales rep in Colorado. After eight months in the job, she was making fifty cold calls a day – and struggling far be-low quota. She was a motivated, hard-working employee – but she wasn’t producing results.

In the course of the conversation, I learned that she had received no prod-uct training, no skills training, and had yet to spend a single day in the field with her manager. My advice to her? Look for another job, which she promptly did.

Most sales turnover occurs, as in this case, during the first year of employ-ment. Too many sales people fail be-cause of a lack of attention during the first critical months of their tenure. When you adopt a “sink or swim” ap-proach to your new hires, you are sabo-taging your future success.

Solution: Institute a New-Hire Orientation Program for your sales team that includes product training, newspaper terminology, order processing procedures, sales training and departmental responsibilities.

• Lack of coaching. Many sales manag-ers don’t seem to recognize that spend-ing time in the field with their reps is the key to their success. Instead of making coaching their primary focus, they make it their lowest priority. They get out of the office if, and when, low-impact issues such as meetings, paper-work, and putting out fires are taken care of.

Solution: Each sales manager should schedule, in advance, 30% of their work-week (preferably 3 mornings) for field rides with their sales people. For a team of six sales people, this means that the man-ager is mentoring each employee for a full morning every two weeks.

• Lack of recognition. In my work as a sales consultant, I get to ask sales peo-ple what they value the most in their work. The answer isn’t usually money. Instead, it is “to be valued and appreci-ated for what I contribute.”

Solution: Make it a point to publicly recog-nize sales people for the small things that make a difference. For example, one of the best ways to pat someone on the back is to have them share the story of their success with their peers at your sales meeting. If one of your reps is doing especially well in selling online advertising, have them con-duct a brief workshop on what is making them so successful.

• Lack of career options. Good sales

managers recognize that their first re-sponsibility is to grow their people. I am continually amazed at how little attention most newspapers give this is-sue. Your high achievers are not going to be content to be “stuck” in the same job year after year. If you aren’t provid-ing your best sales people with career advancement opportunities, you will lose them.

Solution: Look at your sales person’s ten-ure with your team as a three-year “tour of duty” at the end of which, if they have performed well, they can expect to be given additional responsibilities. Find out what each of your sales people want in their ca-reers. Not all will want to be managers; the key is to know what they aspire to and cre-ate an environment that makes achieving their aspirations possible.

In summary, your sales organization should strive to keep turnover under 20% annually, and have 80% of your sales people at or above their sales goals. By making a few fundamental improvements in the way in which you hire, train and coach your sales people, these are realistic and achievable goals.

Speaker, trainer, and author of the Sales Manager as Team Builder and Value-Based Selling for Advertising Solutions training systems, Landy Chase, M.B.A., C.S.P., spe-cializes in providing effective resources for newspapers to attain revenue goals. For more information, call (800) 370-8026 or visit our website, www.newspapersal-estrainingsystem.com.

continued from page 1

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 3

Past PresidentMike WoodardTuscaloosa Sun &

ReporterNorthport, AL205-333-7525

PresidentRussell

QuattlebaumSoutheast SunEnterprise, AL 334-393-2969

Vice PresidentGreg Ledford

Shelby Shopper & Info

Shelby, NC 704-484-1047

TreasurerTony OnellionBargains PlusSlidell, LA

985-649-9515

Board MemberCaroline

QuattlebaumSoutheast SunEnterprise, AL 334-393-2969

SecretaryAlan Lingerfelt

The Piedmont Shopper

Danville, VA434-822-1800

Executive Director

Douglas FrySAPA Headquarters

Columbia, TN931-490-0400

Board MemberJW Owens

Savannah Pennysaver

Savannah, GA 912-238-2040

Past PresidentGary Benton

Peddler ADvantageParis, TN

731-644-9595

Administrative Assistant

Vickie BeldenSAPA Headquarters

Columbia, TN931-490-0400sA

pA

lead

ersh

ip Happiness and high performance come to you when you choose to live your life consistent with your highest values and your deepest convictions.

Brian Tracy

By John Foust, Raleigh, NC

The advertiser laughed as he told me about a media sales per-son who had recently met with him. “None of that poor guy’s examples were relevant to my business. He didn’t make an effort to see things from my point of view, and he obviously gives the same presentation to everyone.”

The advertiser’s story reminded me of a concerned mother who described a visit to a doctor who was treating her eight-year-old son for a minor heart defect. To explain the problem, the doc-tor sketched a circle on a small notepad and said, “This is your heart.” Then he divided the circle into four sections and drew a small dot to indicate the problem area.

With no warning, the little boy burst into tears. The woman put her arms around him and said, “Son, we’ve talked about this before. Why are you so upset?”

Between sobs he said, “I’m a monster.”

“A monster? What do you mean?”

He drew a Valentine shape in the air with his fingers and said, “Everybody else’s heart looks like this. But he says mine is round. I’m a monster.”

CommunicateWith Heart

continued on page 4

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 4

Realizing his mistake, the doctor said, “Of course, your heart looks like everybody else’s. I just wasn’t thinking when I drew a round heart.” Then he continued his ex-planation, making an extra effort to com-municate on his young patient’s level.

The little boy’s heart defect was not life-threatening. And from what his mother said, the only time he ever resembled a monster was when he went Trick-or-Treating on Halloween.

Three points come to mind:

1. Use relevant examples in your sales presentations. Each person – each busi-ness – is unique. If you do not tailor pre-sentations to your individual prospects, you’re wasting their time (and your ef-forts).

How do you achieve relevance? Before the presentation appointment, research the industry and the prospective advertiser’s business. Then during the call, ask ques-tions to learn about the specific market-ing problems that he or she faces.

2. Be flexible. You could say that the doc-tor had it easy, because the child’s tears signaled that something was wrong. With adults, it’s not quite that simple. As a re-sult, it is important to be on the lookout for signs that you are being misunder-stood – or indications that your prospect is losing interest.

The surest way to take an interest-pulse during a call is to continue to ask ques-tions. Strive for a two-way dialogue, not a one-way monologue. If you’re off course (and we all are at one time or another),

you’ll be in position to make adjustments.

3. Develop reserve power. Good com-municators have more than one way to describe the same thing. Do you have an arsenal of examples and analogies to il-lustrate the particulars of your paper’s readership? Do you have several easy-to-understand charts to show how your pa-per compares with the competition? Do you have testimonials and success stories?

These things will give you reserve power – a deep well from which to draw.

(c) Copyright 2009 by John Foust. All rights reserved.

E-mail John Foust for information about his training videos for ad departments: [email protected]

Tight Economy? Revenue Down?What's a newspaper to do?

New revenue sources, solutions & opportunities

Newspapers • Reading • Education Kidsville News! • Internet • Truman, the dragon

tiesppGROW WITH US!

Find out why the Kidsville News! educationalresource and children's newspaper is the fastest

growing publication in NC and the nation.*

Call today: Bill Bowman, [email protected] or 910.391.3859

www.KidsvilleNews.comKidsville News! is not a franchise,

insert or special section.

2005 Kidsville News! CirculationNational: 80,000

2007 Kidsville News! CirculationNational: 806,125

2008 Kidsville News! CirculationNational: 1,282,118

Supported by the

Foundation

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 5

ABCs of Sellingby Joe Bonura

A (ADmiT)—ADmiT YoUR SHoRTComingS

In order to move forward, you must know your present status. Ego, more than any-thing, deters many people in the selling profession. Ego prevents them from ad-mitting that they do not know where they are in relation to where they could be. They believe that they have reached the top, when in reality, they should continue to climb the ladder. Let’s face it: you will never reach the top of the ladder. When you do, the only option will be to come down the other side.

PoliSH THE APPlEAlthough I have been teaching sales skills for over 35 years, I continue to attend three educational events each year. Why do that? Because I have learned that I must always be polishing the apple, if I expect it to shine. I have over 2,000 books in my personal library, and half of those are on sales and self-development. These books have provided hours of enjoyment, but more important, they have provided the information that I required to excel and succeed.

ExPAnD YoUR HoRizonSTake time now to determine where you are in your career. Then, ask yourself where you could be, if you expanded your horizons. Admit that you need to learn more. Once you learn something new, you will never be the same person again. Knowledge lights the candle of your future. When you combine your present knowledge with the catalyst of what you learn, you continue to

develop and ma-ture in your pro-fession.

B (BURST)—A loT of HoT

AiROne of the most exciting events during “Kentucky Derby Week” in Louisville is the great balloon race. Each year, we look forward to seeing the big hot air balloons expand and rise into the air. It is eye-candy for young and old alike.

SoAR To THE HEAvEnSBurst through your self-imposed limita-tions and realize your God-given poten-tial.If you were to put the basket on top of the balloon before inflating it, the balloon would take the shape of the basket and never leave the ground. Fill the balloon above the basket, and it will soar into the heavens.

THink ABovE THE BASkETMany very capable people stuff their true potential into a small basket and grow to fit the size and shape of their minimal ex-pectations. Think ABOVE the basket, and watch your potential expand.

YoU gET WHAT YoU ExPECTHow big is your basket? Are you limiting your possibilities by stuffing yourself into a small basket? Take a look at what you expect out of life, and then multiply that by ten. Reach far beyond your capabilities. You can believe anything that you want to

believe, and what you do to achieve it is a reflection of what you believe.

C (ConTRol)—fRom THE in-SiDE oUT

You are the only person in control of your destiny. Stop looking outside of yourself for the answer to your success. It can only come from the inside out, and you are the boss when it comes to what you must do to achieve your destiny.

ConTRol THE momEnTUmI read once that many people are injured in traffic accidents because they quit driv-ing the car when a collision occurs. They give up control of the vehicle, and let the momentum of the accident take control of their destiny.

(D) Do noT lET goThe best advice is to keep driving, whether in a car or in a life situation. Do not take your hands, or your mind, off of the steer-ing wheel. Stay in control, and drive your way out of the situation.

DiAl YoUR WAY To SUCCESSIf you are expecting a client to say yes, and you get a no instead, keep your hands on the wheel, look around you for a possible out, and then get back on the road and keep driving. Pick up the phone and make ten dials immediately after the client turn-down. Every time that you are rejected, pick up the phone and make ten dials to new prospects.Positive action will always relieve the stress of rejection, and at the same time, it will reveal new opportunities for success.© 2007-2009 Joe Bonura & Associates, Inc.

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 6

p d

c

PALIGODATACONSULTING

Ryan PaligoPresident

200 Kimberly DriveColumbia, TN 38401

931.334.1757

[email protected]

lesson 9: Selling Your ideas Honestly(a) Your Ideas Are Either New Or Else Old Worn-Out Ones. There is no mid-dle ground. You must not rest at ease, satisfied with what you are doing now. Stagnant waters are unhealthy waters. Rowing down stream with the current does not strengthen your brain and fiber. Think out and apply all plans and meth-ods that will increase your daily produc-ing power.

(b) Progressiveness Depends Upon New Ideas. You can climb the hill only by stepping up, little by little, step by step. Every solicitation made should be im-proved over the previous solicitations made. Every piece of copy prepared should bear the stamp of studied com-pleteness. He is a poor student who does not learn from his everyday experiences.

(c) Work Out New Ideas To Help Your Customers. Your customers will buy your new and practical ideas as fast as you can produce them. They have been working with their old worn-out ideas so

long that they are hungry for something better.

(d) The Better The Idea, The Quicker You Can Sell It. Do not suggest the first thing that comes to your mind. Think it over well first, yourself—make compari-sons. Bring forward an array of many ideas, and select what you think is best suited for your customer. Be sure in your own mind that the idea you offer is practical and useful to your customer. Such ideas are the quick-selling kind.

(e) Your Honesty in Purpose Is Shown By Your Earnest Good Logic. When you want to keep business as well as to get it, you must always get it and keep it based on good and sufficient “reasons why.” There is no other permanent basis of success. Your honesty and your sincer-ity with your customers form a sure and safe foundation. You must work for the good of your customers or else, sooner or later, lose their trade.

(f) Business Friendships Continue Only When You Yourself Are True. The wrecks in business enterprises come from wrong business methods. The failures of most would-be salesmen come because they cannot be trusted. If he is not true to himself, a salesperson cannot sell hon-estly. No salesperson can be true to him-self, to his employer, or to his customers, unless he becomes an expert expounder of the many advantages offered in the goods he sells. He must be able to tell all the truth about his goods and tell it well. It is the truth about your goods that your customers want to know. It is your faithfulness in telling the truth that molds lasting friendships with your cus-tomers. The more they believe in you and your goods, the greater the degree of their patronage.

The original cores of these lessons were first espoused by Basil Smith in 1912. Current version © Copyright 2007 by Richard Clark -- Classified Development.

Richard Clark offers great low-cost online ad-taking solutions, as well as sales and management training that pay for them-selves, guaranteed. Find out more and see the demo at www.classifieddevelop-ment.com

IPC CHARLIE HENCYE

800-243-7659 [email protected] FAX: 941-484-0828

140 Triple Diamond Blvd * Suite C * N. Venice, FL 34275www.ipcpoly.com

PRESIDENT

International Poly&

Promotions

Plastic BagsPromotional Items

Advertising Specialties

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.

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 7

SAPA Conference 2009: In 2009 we’ll be in Louisville, Kentucky at the Hyatt Regency Hotel. The hotel is located across the street from 4th Street Live so there will be plenty to do. Speakers will give you and your people the tools you need to be more productive and successful in challenging times. Mark your calendars now for August 28 & 29, 2009 in Louisville.

Conference SchedulesPlease give us a call at 1-800-334-0649 or email: [email protected] if you would like more information.

IFPA Annual Conference 2009: After you attend the SAPA Conference in Louisville, consider attending the multi-association IFPA-sponsored conference in Chicago at the Westin O’Hare on September 24 - 26, 2009.

Contact Joe Duval at 1.888.450.IFPA or check the web at www.freepaperconference.com for more information.

Joint Conference 2010: We’re looking ahead to great times in 2010 by joining with IFPA to have a first-ever joint conference. The conference will be held in downtown Nashville, Tennessee. You can plan now for a great conference in a great city with great speakers and information. We don’t have a ton of information yet, but we’re working on it.

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 8

Potter plea for 5-day support.

In May, the Postal Service hosted its Annual Postal Forum. The Postmaster General addressed attendees making the case for change. The Postmaster General laid out as a top priority the Service’s desire to be granted the flexibility to reduce mandated days of delivery from six to five days a week. Financial results for the first half of the year show a $2.3B loss and a volume decline of 12 billion pieces. The Postal Service is seeking industry support for its efforts to realign its network, seek Congressional support for more flexibility in delivery days, and relief from its obligations to pay current, and prefunded, retiree health obligations.

Postmaster General Potter, and postal leadership, are showing mailers they are serious about their pleas for permission to adjust days of delivery down to 5 days a week. The Postal Service has invited Association leaders from the standard mail industry to attend a briefing and informal dialogue with the Postal Service in June to discuss the Postal Service’s thoughts on its desire to change from six days to five days a week delivery of mail.

UsPs cfo describes health funding problem.

The new Chief Financial Officer for the Postal Service, Joseph Corbett, told

attendees at the Postal Forum that nearly 10% of the Postal Service’s annual revenue will go to pay, and pre-pay, its retiree health care obligations. The Postal Service must pay more than 7 Billion dollars into the Retiree Health Benefit Fund Trust on September 30th. With a projected net loss of 6.5 Billion dollars for the Postal Service’s fiscal year, the Postal Service is on target to go broke if it does not receive legislative relief from the health prefunding problem obligations.

Congressman McHugh, Republican New York, has proposed legislation that would provide the Postal Service with relief from its obligation to pay current retiree health care costs, at the same time it prefunds future retiree health costs. McHugh’s bill, HR22, would let the Postal Service use the existing funds in the Retirement Health Fund to pay current retiree health costs and would provide relief for another 8 years.

Although HR22 has picked up many additional signers, and some relief is predicted to pass at the last minute before the Postal Service “goes broke,” many in Congress are reluctant to give the Postal Service any long term relief from its financial burdens and are proposing that the Postal Service present a long term strategic plan. Many elected officials have signaled that they will not support any health care funding relief for the Postal Service that lasts longer than 2-3 years.

congressional hearings.

In May, the House Postal Oversight Committee held hearings on the changes that might need to be made by the Postal Service to survive the reduction in its volumes in these tough economic times. The Government Accountability Office (GAO) told Congress that the Postal Service’s ability to provide high quality universal postal service will require actions in several areas, including right sizing its retail and mail processing networks and reducing the size of its work force. The GAO is considering action to return the USPS to its high risk list. The GAO witness stated the GAO was “closely monitoring USPS’ financial viability to determine whether to add USPS’ need for restructuring to GAO’s High Risk List.”

summer sale approved.

On June 4, 2009, the Postal Regulatory Commission announced its unanimous approval of the USPS proposal to implement a standard mail volume incentive pricing program that will run from July 1 through September 30, 2009.

For eligible mailers, the summer sale program will provide a 30% rebate on additional standard mail letters and flats mailed during the summer season when compared to prior years’ mailings, subject to various adjustment factors. Eligible mailers are those mailers who can demonstrate the mailed volume of at least one million standard mail pieces between October 1, 2007 and March 31, 2008.

On June 1, 2009, the United States Postal

Postal Updates

continued on page 9

Reach new advertisers

Go online for a free demo and you could

win a Flip Mino™ camcorder!

www.multiadspeedyad.com/flip

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 9

Service filed a Notice of Price Adjustment to reduce the rates it had initially proposed for standard mail, high density, flat pieces. The price reduction sought by the Postal Service is one-tenth of a cent at the piece rate and a reduction in the proposed pound rate to be the same rate for high density mailers as saturation mail. In accordance with the procedures of the new Postal law, the new price adjustments would take effect 45 days after the filing, on July 19, 2009.

The Postal Service explained the reasons for its decision to do a downward adjustment by stating that it has heard the concerns expressed by high density flatmailers that the

above-average price increases implemented May 11, 2009 will have a detrimental impact on their businesses. After taking these concerns into consideration, the Postal Service has determined that High Density flat prices that reflect an increase from the previous year similar to the average Standard Mail increase “are more appropriate at this time.”

The February 2009 rate adjustment filing of the Postal Service had increased postal prices on an average tied to the CPI cap of approximately 2.9%. The rate increases for High Density mail, the mail used by newspapers that operate TMC programs,

had increased from approximately 5.5-11%, depending upon the weight of the piece. For saturation mailers that compete with the combination mail and private carrier delivery programs of newspapers, the higher-than-average price increases had been greeted with approval. Saturation mailers have been telling the Postal Service for years that saturation mail rates are too high. Both the piece rate and the pound rate act as a disincentive for free papers to use the mail for distribution. For free papers that operate in markets with a newspaper TMC program, the newspapers can often beat a mailed paper on price because of its lower average costs of distribution. SMC has been urging the Postal Service to decrease its rates for saturation mail and to widen the price differential between high density and full saturation mailings.

The Newspaper Association of America, and individual newspapers, have warned the Postal Service that the higher-than-average price increases could push their members to shift more distribution to private carrier delivery. The newspaper industry has also appealed to the Postal Service, and other governmental officials pointing to the multiple burdens facing the industry in this era of changing communications and reduced newspaper revenues from subscribers and advertisers. The Postal Service filing is an example of how the USPS can use its flexibility under the Postal Reform Law to respond quickly and flexibly to what it perceives as needs in the mailing community.

At this time, the Saturation Mailers Coalition has no intention of contesting or opposing the proposed price adjustment. SMC is in the process of surveying its members to determine barriers to doing business with the Postal Service, priorities for SMC in its postal advocacy efforts, and to get information on our members’ competitive challenges and conditions.

What you get by reaching your des-tination is not nearly as important as what you will become by reaching your destination.

Zig Ziglar

3 Facilities 7 Presses 70 Units 12 Folders 3 Inserters 2 Stitchers

Over the past year we have made multiple signifi cant improvements to our three printing facilities; reinforcing ourselves as the region’s most complete resource for shoppers, newspapers, inserts, fl yers, and catalogs. Give us a call to see how our new numbers can help improve yours.

8 8 8 - N o w a t a 1www.NowataPrinting.com8 8 8 - N o w a t a 1

H a r r i s o n , A R | N o w a t a , O K | S p r i n g f i e l d , M O

 

Fake Brains Software, Inc has been providing 

affordable software to community newspapers and 

shoppers since 1991.  Our products are designed 

based on recommendations from publishers across 

the country to ensure they offer the latest in 

capabilities and functionality.  We have always 

believed that software and service are not mutually 

exclusive and to back this up, we have created a 

comprehensive training and service program that is 

provided at no extra charge to each new client.  Our 

goal is to increase your organizations profitability and 

efficiencies through the effective use of our software. 

Addressing the needs of publishers, while planting the seeds for a profitable future.

303.791.3301 [email protected] www.fakebrains.com 

Advertising & Billing: • Formatted Classified Ads, for print and web • Retail Manifests • Revenue Forecasts • Billing • Reminders • Scheduling

Circulation Management: • Carriers • Bundle Top Sheets • Truck Drops

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 10

Southeastern AdvertisingPublishers Association

Join Us In Louisville!

sapa’s Homerun derby will give your team wHat tHey need to compete!

sapa conferenceHyatt regency — august 28 - 29, 2009


Recommended