Carpe Salesem
Transcription
Carpe Salesem
Visit Us At w w w. s a p a t o d ay . c o m SAPAToday Advancing the free paper industry by providing resources for success and venues for sharing ideas. The Monthly Newsletter for the Free Paper Industry Board of Directors The leadership of SAPA is in good hands. The board of directors, director, and assistant are listed with contact information. Page 3 The Importance of Paying Attention When our customers speak are we really listening or are we working on our response? 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 April 2010 How To Sell An Icebox To An Eskimo In this article James Lorenzen shows us that we should sell like Herb Tarlick of WKRP. Page 5 The Most Poorly Handled Request Landy Chase of Charlotte, NC questions what our advertisers really want when they ask us to “send them some info.” Page 7 USPS Plan and Plea Donna Hanberry lets us know what the postal service has released with its Future Postal Service. Page 10 Southeastern Publishers Carpe Salesem By: Noah Rickun You’ve probably heard the mantra “Carpe Diem” a thousand times. It’s on t-shirts, bumper stickers, motivational posters, and screensavers. Some people even have it tattooed on their bodies. The phrase is originally from a Latin poem written by Horace over two thousand years ago, where it appeared as “Carpe diem quam minimum credula postero” or “Seize the day, trusting as little as possible in the future.” But what does this have to do with sales? I recently created and adopted a new sales mantra: “Carpe Salesem.” I want to share it with you. Carpe Diem (seize the day!) is a philosophy for life. Carpe Salesem (seize the sale!) is a philosophy for sales success. In light of my discovery, I’ve made a conscious decision to approach customers with value, with ideas to improve their business, and with a focus on long-term relationships rather than wham-bamtransaction-slam! You might be able to manipulate prospects into making a onetime purchase, but that “slam!” above is the sound of your one-time customer slamming the door on future sales. It may take me a little longer to get the first order with the Carpe Salesem philosophy, but I keep my customers for life. Southeastern Advertising Publishers Association (931) 490-0400 Advertising Association And so can you. Carpe Salesem is NOT “selling by telling.” It’s not about pressuring your prospect or customer to buy now. Carpe Salesem is about balancing buyer urgency (or lack thereof) and seller patience. Let me be clear: I’m not suggesting you take a passive role in your success. You MUST take actions every day that create a buying atmosphere, and that identify buyer needs and wants, rather than your product’s features and benefits. The Carpe Salesem philosophy incorporates best practices from my personal sales experiences, and lessons from successful salespeople I have worked with over the years. By no means do I consider myself a literary god (take, for example, the fact that I invented a Latin word— Salesem — without proper authority), but I do know that my mantra works for me. And, it can work for you IF you apply the elements to yourself and your business. (931) 490-0488 fax continued on page 2 1 Visit Us At w w w. s a p a t o d ay . c o m Carpe Salesem continued from page 1 Here are the essential elements of my Carpe Salesem philosophy: 1. Seize every opportunity. Not just the sales opportunity, but opportunities to serve others in memorable ways that lead to relationships. 2. Enjoy the sales process. Don’t just seize the sale; enjoy it. Make use of your passion and your customers will love you for it. 3. Help your customers. Offer valuable insight and solutions. Become known as a resource—someone who is helpful, rather than someone who is just looking for a commission. 4. Be prepared. Plan your day the night before and come in to the office (or better yet, to a customer appointment) with your sales guns blazing. Understand the importance of Monday morning and Friday afternoon. You can put in eight productive hours (four on Monday, four on Friday) while your competition is either hung-over or leaving early for happy hour. 5. Be responsive. I have a rule that I ALWAYS follow—ALWAYS, ALWAYS, ALWAYS respond to EVERY customer contact (whether it be a voicemail, email, instant message, text message, or smoke signal) before you go to sleep. Even if it’s 3 a.m. and the only thing you have the energy to write is, “Hey Mr. Customer, thanks for the email. I wanted to let you know that I received it and that I am working on a great solution for you. I’ll be in touch 6. Be friendly. A smile costs nothing, but it’s worth millions. Being friendly sets the tone for a great relationship. And a great relationship sets the stage for big sales. I landed the best account of my life by befriending the biggest jerk in my industry. Turns out, he wasn’t that bad of a guy. He just didn’t know how to smile. 7. Be memorable. Differentiate yourself from your competition with creative ways to serve your customer. 8. Be studious. I’m not an expert at sales. I’m a student of sales. I’ve been that way since I started selling 20 years ago, and I’ll stay that way until I die. Staying a student means I learn something new every day. This list is by no means exhaustive, and each element is a lesson in its own right. In the coming weeks, I’ll share those lessons and how to apply them to your business in more depth. NOW IT’S YOUR TURN: What’s your sales philosophy? Or better yet, what’s on your Carpe Salesem list? Email the most powerful element from your list of sales tenets to noah@gitomer.com . I’ll post the best ideas on my blog at www.rickun.com Noah Rickun will be one of our featured speakers at our conference in Nashville. He is a Gitomer-Certified Speaker who helps companies everywhere increase sales, build customer loyalty, and develop their YES! attitudes. You may contact his friendly office at 704-333-1112. 9. Be inquisitive. Instead of telling your customer everything about YOU, ASK your customer about their needs—and don’t stop until you know everything there is to know about them. Your competition will be reciting features and benefits, marketing drivel, and lines from Cheap Sales Tricks 101 while you’re finding out how to actually get your customer to buy. It’s up to you: Don’t ask…don’t sell. 10. Be persistent. Nothing says Carpe Salesem more than persistence. And the key to mastering the elements above is being persistent in everything you do. PALIGODATACONSULTING d p tomorrow with an idea and answer to every question you’ve asked.” My rule does not result in perfect service, but it works. It puts the customer at ease and it shows them you care. Don’t quit until you know in your heart it’s over. If you have to ask yourself if it’s over, it ain’t over. It’s only over when you sincerely believe that you can no longer be of service to your customer. c Ryan Paligo President 200 Kimberly Drive Columbia, TN 38401 931.334.1757 paligo@mac.com Southeastern Advertising Publishers Association (931) 490-0400 (931) 490-0488 fax 2 Visit SAPA Leadership President Russell Quattlebaum Southeast Sun Enterprise, AL 334-393-2969 Us Vice President Tony Onellion Bargains Plus Slidell, LA 985-649-9515 Positive thinking won’t let you do anything but it will let you do everything better than negative thinking will. Zig Ziglar At w w w. s a p a t o d ay . c o m Treasurer Alan Lingerfelt The Piedmont Shopper Danville, VA 434-822-1800 Secretary Caroline Quattlebaum Southeast Sun Enterprise, AL 334-393-2969 Board Member JW Owens SGS Publications, Inc. Keystone Hghts, FL 863-634-8499 Board Member Will Thomas Exchange, Inc. Fayetteville, TN 931-433-9737 Past President Greg Ledford Shelby Shopper & Info Shelby, NC 704-484-1047 Past President Gary Benton Peddler ADvantage Paris, TN 731-644-9595 Executive Director Douglas Fry SAPA Headquarters Columbia, TN 931-490-0400 Administrative Assistant Vickie Belden SAPA Headquarters Columbia, TN 931-490-0400 The Importance of Paying Attention By John Foust, Raleigh, NC Rosa controls the advertising for a regional business. When I asked if she had any advice for media sales people, she laughed and said, “Tell them to pay attention. That’s the best way to make a good impression.” She told me that when she started in her position as marketing director, one of her first tasks was to update her media files. She called local paper’s sales Southeastern Advertising Publishers Association (931) 490-0400 executive who was assigned to her account and told him that she needed their latest media kit. She made it clear that she was just gathering information for future consideration and, therefore, was not in a position to sign any advertising contracts for at least a year. He insisted that an in-person meeting would be better than putting the media kit in the mail, and she agreed to an appointment. “When he arrived at my office, the first thing I noticed was that he didn’t have a briefcase or notebook,” she said. “If he had a media kit with continued on page 4 (931) 490-0488 fax 3 Visit Us him, it had to be small enough to fit in his jacket pocket. I asked him point blank if he had brought the kit. He said, ‘First I’d to get to know your business,’ and asked about our marketing plans.” She provided him with basic information about the company, their marketing history, and general goals for the future. The conversation was pleasant enough, but she found it strange that he didn’t take notes. At one point, he pulled an index card out of his pocket, jotted something down, and quickly put it back in his pocket. She remembered thinking that he couldn’t have written more than a couple of words. As the conversation ended, she reminded him that the purpose of the appointment was to provide her with a media kit. He promised to send one to her. “The meeting was a complete At w w w. s a p a t o d ay . c o m waste of time,” she said. “I had made “The most surprising thing,” she a simple request, and he ignored it.” explained, “was that he told me he To compound her disappointment, he had over 20 years of media sales e-mailed an attachment of the media experience in radio, television, kit, instead of sending an original, web and print. Considering that printed copy. “The attachment was background – and considering the fact inadequate, because their original that he had worked with hundreds of media kit was produced on oversized advertisers – I wonder why he never paper,” she said. “By the time the learned to pay attention.” attachment was reduced so it could (c) Copyright 2009 by John Foust. All be printed on our office printer, the rights reserved. E-mail John Foust for type was barely readable, and the information about his training videos for ad departments: jfoust@mindspring.com color was blurred.” The worst was yet to come. “A couple of weeks later,” Rosa said, “he called to say that he had worked up an advertising proposal based what we had discussed. He seemed surprised when I repeated what I had been telling him all along - that the purpose of my original call was to get a copy of his paper’s media kit for my file. Southeastern Advertising Publishers Association (931) 490-0400 Man was designed for accomplishment, engineered for success, and endowed with the seeds of greatness. Zig Ziglar (931) 490-0488 fax 4 Visit Us At w w w. s a p a t o d ay . c o m How To Sell An Icebox To An Eskimo “I just wanted to ask you a few quick questions. Would that be okay?” The pro is getting permission and the Eskimo appreciates the thought. “Sure, I guess so.” made of ice!!! Why would I need an ice box?” by James Lorenzen Ever hear someone say that somebody they knew was a natural-born salesperson Herb’s stumped. He goes back to the ofwho was SOOOO good, s/he could sell fice and puts his feet on the desk. He feels dejected. When his sales manager asks an ice box to an Eskimo? him what’s wrong, Herb says, “I need help Ever wonder if that’s really possible? closing. I just can’t seem to close a sale!” Everyone knows what the stereotype salesperson would do. You can almost see the scene in your mind: Remember the TV show, WKRP in Cincinnati? The ad salesperson was Herb Tarlick. Imagine him trying to sell an ice box to an Eskimo! Poor Herb. He doesn’t know “closing” isn’t his problem. He’ll never be a pro. So, how does a real professional do it? It’ll be different! “Obviously you live in a very cold place. Tell me, Mr/s. (name), what’s the biggest problem you have when it comes to food storage?” “Hmmm,” the Eskimo thinks for a moment. “I guess it would be keeping fruits and vegetables.” “How do you mean?” “Well, take our cherry tomatoes, for example. It get so cold up here they freeze solid!” “So you need to do something to protect them FROM the cold!” Now, the pro knows the problem. The pro drives up, but he leaves the ice “Yeah. That would help.” He’d drive up in his truck with the ice box box on the truck! There are no fancy bro- “How much is this costing you?” loaded on the back; he’d get out, unload chures, either. The pro is carrying noththe ice box and start talking. He wouldn’t ing but a pad of paper and a pen. The Eskimo does a little quick figuring listen much; he’d just talk. He’d probably and tells our pro just how much he’s lostell a few jokes, slap the Eskimo on the The Eskimo sees him and says, “What are ing on fruits and vegetables each month. back, maybe even offer him some kind of you selling?” Now the pro knows cost of the problem “freebie,” but always constantly talking. The pro begins, “Hi, Mr/s. (name)! Actu- and can calculate the value of the solution. You can just see Herb opening the refrig- ally, I don’t know if I can sell you anything erator door, slamming it, and opening it today or not. Besides, if I can’t make it “And, you’re just throwing that money again, all the while filling the prospect’s profitable for you, you’re not going to buy away?” ears with all the features, advantages, and anything from me anyway, are you?” “Yeah, I guess so. There’s nothing else we benefits he knew. After all, that’s what he “No, you’ve got that right.” can do!” Hmmm, no alternatives! was taught to do in Sales 101! “Well, honestly, I wouldn’t want you to. After Herb goes through everything he’s I’d rather you DIDN’T buy and tell peo- “Mr/s. (name), I think I might have a solulearned, he tries to close: “So, what do ple I was honest than make a sale both of tion for you, and I’ll bet it would cost less than you’re throwing away each month!” you say? Shall I write you up?” us would regret. Does that make sense?” The Eskimo then says, “Look here, Mr. “Yes. So, why are you here?” Now, the “Really?” Tarlick. I live in an igloo - it’s a house Eskimo is curious. continued on page 6 Integrated Management Software designed by publishers for publishers Display & Classified Ad Sales & Billing Circulation z Direct Mail z Payroll z Accounting M ERRIMAC S OFTWARE A SSOCIATES INC . TAMWORTH, NH 603 323 8811 WWW. MERRSOFT . COM Southeastern Advertising Publishers Association (931) 490-0400 (931) 490-0488 fax 5 Visit Us At How To Sell An Icebox To An Eskimo “Yes! Take a look!” Our pro shows him the ice box. “It has two benefits I think you’ll really like. First, it will protect your fruits and vegetables FROM the cold, which I know you’ll like. But secondly, if you plug it in, it’s climate-controlled!” Still, no brochures, no data… just what the prospect needs to solve the problem. “Yeah, that makes sense!” “And, we can make it so it costs less than you’re losing! Would you like to have it?” “Sure!” End of story. We now know how the pro does it. w w w. s a p a t o d ay . c o m kits. That’s why they’ve become commoditized; they don’t know how to sell anything else. Growth comes from selling solutions, not product. continued from page 5 Look at your own sales approach. Are you “pushing product” like Herb Tarlick? Or, are you solving problems like a real professional? Here’s how to tell: Are you “leading” with your media kit or brochures?...or are you leaving them in the car? Are you selling your audience and coverage?... or are you finding out what the prospect really wants to achieve? Are you pre-occupied with making a sale or are you more concerned with your prospects’ success? Develop competence! You’ll then have confidence. YOU – your approach - will be the differentiator that makes them want to talk, listen, and open a relationship with you from that day forward. James Lorenzen has been a headline speaker more than 500 conventions worldwide (see www.jameslorenzen. com) and successfully founded, built, and sold five papers of his own. In six years of ad sales, he never sold an open-rate ad! Every sale was a campaign of 13 consecutive weeks or longer and over 80% of all sales were for a full year or longer, getting deposit money with each sale! He once sold 22 campaigns in 22 days and 52 campaigns in 29 weeks. Five times, he received all the money for the entire year in advance! Jim has appeared in scores of publications as well as on Nightingale-Conant’s “Sound Selling” audio series and American Airlines’ “Sky Radio.” He can be reached through Gardner Hathaway, LLC at 805.265.5418. Your competition is leading with media in·san·i·ty [in-san’-i-te] “Doing the same thing over and over again and Albert Einstein expecting different results.” So why do you keep spending too much for your ad building? Complete Graphic Design Services with fast turnaround, superb creativity, low cost • ROP Ads • Coupon Books • Special Sections • New Product Prototypes • Spec Ads • Marketing Material NO MINIMUMS • NO CONTRACTS • NO DEPOSITS ALL WORK DONE IN THE U.S. 888-491-2221 • www.ckpsolutions.com Southeastern Advertising Publishers Association (931) 490-0400 (931) 490-0488 fax 6 Visit Us At w w w. s a p a t o d ay . c o m The Most Poorly Handled Request by Landy Chase Everyone knows that in professional selling, time is money. If you are developing your market properly, you spend a lot of your valuable time in follow-up with potential buyers. Follow-up spent with a contact who ultimately does not buy from you is, at least for now, a waste of time. When people are non-qualified prospects - in other words, for whatever reason, they are simply not interested - they will communicate this in a variety of ways. Each requires a different approach for effective handling. There is one way this is communicated, however, that can literally be a poison pill to your time management. Do you know what it is? Answer: “Send me some information.” Why? Well, let’s “translate” the statement “send me some information” as it is meant by most buyers: machine and spend a couple of dollars of company money to get it to me in a timely manner. Do all of this, so that upon receiving the information I requested, I can dump it -immediately and without reviewing it into the trash can.” “I’m not remotely interested in what you are calling me about. However, since Obviously, in such cases the best soluI don’t have the backbone to simply say so tion is to avoid going through this pro- and since I don’t respect your time - here cess. However, the problem with “send is what I would like for you to do: me some information” is that you have to Go to your literature closet and carefully deal with two sticky issues, both of which select and collate a complete set of those impact what to do next: expensive four-color brochures that your (1) The person might, in fact, have a sericompany maintains just for people like ous interest in doing business with you, in me. which case it would be worth your time to Spend a half-hour or so in front of your follow through, and computer, typing a nice cover letter for (2) It would not be appropriate to say, me. “Before I send this, I need to know if you Or, better yet, pull your secretary off of are serious or not.” Yes, you are entitled to some important task so that she can do know, but this situation must be handled this for you. delicately and properly. Type up and print a nice label with my What’s a good time manager to do? name and address, and place this label on The next time that someone suggests that the cover of a nice, big envelope. you “send them some information,” folPut your marketing literature in the enve- low the following approach - verbatim. lope. Run the package through your postage continued on page 8 David C. Zeh Print Sales Consultant 402 Mayfield Drive • P.O. Box 966 Monroe, GA 30655 toll free: 800.354.0235 local: 770.267.2596 fax: 770.267.9463 Partners in Printing Since 1900 mobile: 770.722.0076 email: dzeh@waltonpress.com www.waltonpress.com Southeastern Advertising Publishers Association (931) 490-0400 (931) 490-0488 fax 7 Visit Us At w w w. s a p a t o d ay . c o m The Most Poorly Handled Request “We have a company website that includes information on everything that we do, and going online will save you the time of having to wait for the materials in the mail. Do you have a pen? Here is the web address.” One final point: Sadly, there are a lot of sales people who make a habit of actually asking prospects, “Would you like me to send you some information?” without this even being requested. These are truly the lost souls of our profession, because it is so much easier for prospects to say “yes” than “no” to this useless question. Think about it: every “sure, send it on” that they get buys them another twenty minutes of wasted time. Because of this simple tactical error, they are participants in the ultimate selling irony: the more calls they make, the more unproductive they are. The classic case of working hard and not working smart. Their response – virtually always - will be to quickly accept this offer, because they have not the slightest interest in your information in the first place. Congratulations! Get off of the phone and be thankful for the half-hour of saved selling time that you just put back in your pocket. Based in Charlotte, North Carolina, Landy Chase, MBA, CSP is an expert who specializes in speaking to corporations and associations on advanced professional selling and sales management skills. For more information, visit his website at www.landychase. com or call (800) 370-8026. continued from page 7 First, empathize: “I would be happy to Now, what to do about that spineless send information to you.” Next, qualify: wimp who wants to waste your time? If “What is it specifically that you interested your contact says, “Just send me whatever in?” you have,” use this approach: Watch the response! You are going to find out, immediately, if this person is wasting your time or not. Qualified Buyer: “I would like information on __________.” Time-Waster: “Just send me whatever you have.” If they make a specific request, suggest a meeting so that you can review the request personally and answer any questions that they have. If they don’t want a meeting yet, send the requested information and follow up in two business days. Attention Pre Press –Design,Layout,Typesetting –Computer-to-Plate(CTP) Web Press –40Units –3Folders –21.5”Cutoff –In-LineGlue&Trim Cut Sheet Services –8ColorUVPress –8.5”x11”or11”x17” SingleSheets –CoatedorOffsetPapers Looking For: Quality Printing Unmatched Service 24/7 Dependability –Newspapers –Shoppers –NewsprintMagazine Publishers –Weeklies&Monthlies –NichePublications –CommunityPapers –Broadsheet,Tabs&Books Post Press –FullServiceMailing –Packaging&Inserting –InkjetAddressing Call Us Today for Money Saving Solutions 704-246-0900 spec-5033-0810 Southeastern Advertising Publishers Association (931) 490-0400 1609 Airport Road Monroe, NC 28110 (931) 490-0488 fax 8 Visit Us At w w w. s a p a t o d ay . c o m Conference Schedules Super Conference Sept. 23-25, been there before. You’ll sample some of 2010: Plan now for a great conference the best the South has to offer as well 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 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. Treasure In Tucson - April 22 - 24, 2010: The 2010 conference will be held at the Westin La Paloma Resort and Spa in Tucson, Arizona April 2224, 2010. AFCP is proud to bring you to The Westin La Paloma in beautiful Tucson, Arizona. With all the amenities that surround you, this will be one of their best conferences yet. They will end the conference with an open mic session for publishers and managers to discuss things they learned at the conference and share ideas that are working in their markets. Go to www.afcp.org for more information. Announcing the all new Recas.com Want to see these brands advertising in your paper? Visit recas.com/new to find out how easy it is to effectively boost your ad revenue with local ad dollars for these brands. 800.348.6485, ext. 5324 Exceeding Expectations working with you every step of the way We truly believe in a partnership and this begins before your job ever enters our plant. We offer consultation on file preparation and design needs such as color balance, photo retouching, etc. This service is free of charge and offered at any time. partnership • Coldset Web Printing • Expert Consulting • Electronic Prepress • In-house Finishing Southeastern Advertising Publishers Association (931) 490-0400 1 800 354 0235 | www.waltonpress.com (931) 490-0488 fax 9 Visit Us At w w w. s a p a t o d ay . c o m USPS Presents A Plan and a Plea by Donna Hanbery In March 2010, the Postal Service rolled out press releases and did a presentation entitled Envisioning America’s Future Postal Service. Postmaster General Jack Potter personally addressed leaders of the mailing community and a broader audience of government officials and the general public to present the problems facing the USPS and the Postal Service’s plan for change. The Postal Service laid out actions in seven different areas and stressed that doing “business as usual” was not possible for the Postal Service to survive. Most of the Postal Service’s proposals require change in the current law governing the Postal Service. Potter stated the USPS needed action on each element of the plan and that piecemeal fixes would not result in a viable Postal Service. He said: “The future depends on a suite of solutions that takes a balanced and reasonable approach, one that cuts across every aspect of our industry but one that, in the end, does the greatest possible good for our stakeholders and the American public.” THE PROBLEMS The Postal Service released reports from three independent consulting firms and piles of statistics to present the problems and issues it is facing. Based upon the consultants’ reports, the Postal Service stated that, without change, it would face cumulative losses of $238 billion over the next 10 years. Many of the facts presented by the Postal Service reflect changes in communication practices and changes in the mail mix. Significant statistics include: 17% mail volume loss from the 2006 peak to today 213 billion pieces – 2006 177 billion pieces – 2009 A changing mail mix with more volume coming from less profitable, standard mail Ever growing delivery points Required retiree health benefit funding under 2006 law of over $5 billion a year until 2016 32,000 post offices in 2010 with only 6,000 having revenues that exceed expenses Real revenue per delivery point declining almost 50% from 2000 Work force cost-per-hour rising faster than inflation yet prices capped by CPI THE PLAN The problems facing the Postal Service have not been unknown. The GAO has put the Postal Service back on its “high risk” list. Congressional leaders have repeatedly asked the Postal Service to present its own plan for the future. The General Accounting Office is in the process of completing a study on the USPS and future business models with a report expected early in 2010. The Postal Service’s plan called for action, and legislative change, in seven areas: Retiree Health Benefits Prefunding This problem, referred to by postal payers as the “stamp tax” requires the Postal Service to pay over $5 billion dollars a year for future retiree health benefits. According to independent studies, and a recent OIG report, the Postal Service has already paid more than $75 billion beyond its fair share to the US Treasury. Although the Postal Service has been reluctant to demand that the Treasury “give the money back,” it did identify the prefunding requirement as the number one problem and suggested areas for change: Restructure the payment obligations to a “pay as you go” process. This is what is used in the rest of the federal government and most of the private sector. Mitigate the payment obligations Recalculate and correct the over-payments the Inspector General has found were made to the Postal Service Civil Service Retirement System pension fund (this is the $75 billion). continued on page 11 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. Justin Gerena, President, Director of Sales p: 888.592.3212 x710 e: justin@jbmultimedia.net Southeastern Advertising Publishers Association (931) 490-0400 (931) 490-0488 fax 10 Visit Us At w w w. s a p a t o d ay . c o m Delivery Frequency or 5-Day different products under on overall CPI cap based on demand and product costs. The Postal Service has estimated it could This would allow the Postal Service to save over $3 billion a year if it could charge higher rates for products that it eliminate Saturday mail delivery and deemed costly or inefficient and lower, more competitive rates for products that processing operations. face greater competition. This could result Expand Access in some products seeing higher than CPI The Postal Service makes the case for rate increases while other products saw closing more of its traditional, bricks little or no increases or even decreases. and mortar, unprofitable post offices The service asked Congress to remove and moving into locations convenient the legal mandate that it offer preferential to customers, such as high traffic areas or reduced cost pricing to nonprofits and like grocery stores, pharmacies and office periodicals. supply stores. The Postal Service asks Potter did state the Postal Service would Congress to eliminate the statutory ban pursue a moderate, less than double-digit, on closing post offices for economic “exigent” price increase effective in 2011. reasons. In a 10-year period, the Postal For ratepayers, this means that the Postal Service estimated it could save $25 Service will file an emergency case for a billion a year by having greater flexibility price increase in late 2010 to go into effect to close traditional postal services and as early as January 2011. Industry buzz move into an environment where it is that the overall increased revenue the provides increased access for customers Postal Service intends to seek will average in its products and services through 5%. With some products, like periodicals, partnerships with private business, its web under water (not paying their allocated site, and self service kiosks. share of attributable costs), the actual Work Force With 300,000 career employees eligible to retire in the coming decade, the Postal Service seeks flexibility to hire persons who would work shorter days, weeks and/ or fewer than full time hours. The Postal Service seeks to have enough personnel at peak times without a requirement to provide them with work hours on a fixed daily or weekly schedule. The Postal Service asked that its wage increases and employee benefits be aligned more with those of other federal agencies and that the arbitrator considering postal labor matters consider the financial health of the Postal Service for making awards. Pricing The Postal Service asked for changes in the current statute limiting price increases to a CPI cap applied on a classification basis. The Postal Service asked that it be given the freedom to set prices among increases individual mailers could see may be double digit. The Postal Service has said that its next case will need to catch up and correct current prices where some products are not covering their share of attributable costs. From a political standpoint, an exigent price increase is far from a “done deal.” Many regulators and congressional officials take “exigent” to mean unforeseen. The right to seek an exigent price increase was designed to respond to shocking circumstances - like war or anthrax. With 2010 suggesting the CPI will not increase enough to give the Postal Service the revenue it needs, it is likely that the debate over what “exigency” means will lead to a live case before the PRC. Expand Products and Services Although the Postal Service stated it would avoid new business ventures like Southeastern Advertising Publishers Association (931) 490-0400 banking, insurance, or other activities that would require a capital commitment (and undoubtedly subject the USPS to public outcry and criticism), it seeks greater flexibility to evaluate and introduce new products consistent with its mission, to allow it to meet customer needs and compete better in the marketplace. Oversight The Postal Service is seeking changes to current legislative and regulatory requirements that make it difficult for the USPS to be flexible and responsive to marketplace conditions. Potter’s speech repeatedly used the words flexibility and speed to stress the need for the Postal Service to react and respond to a modern communications marketplace. REACTION Although many postal stakeholders praised the Postal Service for establishing an open, and highly public, dialogue to present its plan, there is little consensus on next steps. Maine Senator Collins, the ranking member of the Senate Committee with oversight over the Postal Service, has been critical of the Postal Service’s proposal to cut Saturday delivery. The unions have also opposed actions that would reduce Saturday service or close Postal facilities. The National Association of Letter Carriers has been outspoken in urging Congress to recalculate the overpayment of Civil Service retirement costs, to return or refund overpayments to the Postal Service’s debt and retiree health fund, and to reform the law to show these obligations as paid. With 2010 being an election year, major legislative change in all of these contentious areas may not be likely. But the problems facing the Postal Service, and the American public, have been served up for future dialogue and debate. Southeastern Publishers (931) 490-0488 fax Advertising Association 11 Visit Us April At w w w. s a p a t o d ay . c o m publication. They will not know who to contact or be able to find other important information about your paper. Do you think SRDS will not be able to help your paper? In the past many publishers have felt that way. In a recent article by Joe Green of Green Banner Publications in Pekin, Indiana, he states that his paper just received 12 full-page ads because of his listing in SRDS. Joe goes on to say that if he had not updated his contact information, he would not have received the phone calls placing the ads. Joe writes, “The budgets for next year are almost set so you might not think updating your SRDS listing is that important to do right now. If you are typical, you have a lot to do and this can be done later. The key is to check it now before you forget it.” Joe goes on to say, “The two sales this past week were both special PaperChain will be attending the AFCP conference this month in events that probably are being done off budget. The first was a bank Tucson, AZ. If you are attending, please stop by the PaperChain buying another bank and wanting some special promotion when they booth to check your Standard Rate and Data Service (SRDS) listing. change the signs. The other was the “Antique Road Show,” which is There will be several laptop computers set up to help you complete coming to town. These types of opportunities occur all year long.” the task. PaperChain and your fellow publishers are extremely interested This is extremely important for your publication. When media in hearing from you if you have received advertising because of buyers are searching for new papers to place advertising, the primary Standard Rate and Data Service. We will feature your publication source is Standard Rate and Data. As the paid newspapers decline in in future PaperChain Updates. Please email Brian Gay at briangay@ circulation, advertisers are demanding more reach for the dollars they mchsi.com or call him at 800-248-4061. are spending. Free papers are becoming an excellent alternative. If Be sure to stop at the PaperChain booth and check your listing while your data is not correct, the advertisers will not be able to find your attending the AFCP conference. After all, it is your money. Report Southeastern Advertising Publishers Association (931) 490-0400 (931) 490-0488 fax 12
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