2009 October

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 octoBER 2009

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

10 ways to mess Up A Perfectly Good AdJohn Foust discusses how most ads don’t succeed. Th e positive view is what to avoid in ad design.Page 3

conference ScheduleTo follow up the SAPA Slugger Conference in Louisville SAPA will join with IFPA for a Super Conference in Nashville.Page 8

Th e SuperBowl of LifeOur featured speaker in Louisville was Joe Bonura. In this article Joe talks about how winners keep coming back.Page 5

knowledge Is Accumulative Richard Clark teaches how putting a smile on your face will help you make the world a better place.Page 7

Persuading Th e Postal ServiceDonna Hanberry with the Saturation Mailers Coalition continues her crusade to lower postage costs and represent the free community paper industry.Page 9

By Brian Gay

(This article was printed in the May 2006 issues of INK. It is amazing how much of what was discussed in the ar-ticle has come to pass.)

I wish that I were a futurist. Then there would be a clear picture in my mind as to where our industry is headed. Many aspects of our industry are in a constant mode of change. There are observations that can be made based on the discus-sions at the recent conferences, articles about our industry, and telephone con-versations. It seems that at this particu-lar time, people are talking about sev-

A Futurist’sView

eral major issues that will affect the future of the industry. Thus, I will look towards the future and try to foresee what will hap-pen.

The constant decline of the paid pa-per circulation will mean success for the free papers. Overall, daily circu-lation dropped 2.5% to 45,414,979 copies while Sunday circulation fell even more, at 3.1% to 48,504,484, ac-cording the Newspaper Association of America, for the six-month period end-ing March 2006. This decline is a con-cern as it has to do with reading habits

and age demographics. There will be at least one more big scandal over paid paper circulation audits in the near fu-ture. The paid papers’ declining circu-lation is a positive for our industry as we see just the opposite with member papers adding circulation. As more and more paid papers drop below that mag-ic number of 50% for market penetra-tion, the more the free papers will come into play. In many C & D markets the only way to penetrate the market now is with direct mail or free papers.

In the months and years ahead there will be a decrease in certain sections of the paid papers. This will be caused because the internet is becoming a bet-ter way to get the information. One of the fi rst sections, or pages, to go will be the stock quotation pages. At the same time the content shrinks so will the size of the newspaper. The standard is now

Southeastern Advertising Publishers Association

continued on page 2



A Futurist’sViewthe 50 inch web but starting in 2007 we will see many papers switch to a 48 inch web. People will be reading a paper that has a page that is 12 inches wide with an 11 inch image area. With this change will come a new SAU.

More and more papers will be joining together to conglomerate their classi-fied ads. This will be the only way to combat Craig’s List, Google, Microsoft, and others. These gigantic classified websites will allow readers to place free classified ads and give that person the option of buying the ad in print and upgrade features. These sites will be linked to the local papers and maintain a local feel about them. However they will be real powerhouses when it comes to the number of ads and content.

Many of the local free papers will shift to carrying news. As the larger paid papers shrink in size and tighten their belts to appease their stockholders, they will cut back even more on local news. The free papers will fill that void. All the content will be local. Most of the stories will be provided by the readers and it will become their way of main-taining a community. The local news will also be part of the content on the paper’s website. The paper will receive all the editorial content electronically. The paper and the paper’s website will work in harmony to do what is best for the readers and advertisers. While

the paper will still be distrib-uted weekly, the internet paper will be constantly changing on a 24/7 time frame. There will be total recall of articles, announcements, calendar of events, advertising, and anything else a reader might want.

The CVC audits and the listing with SRDS will prove to be of far greater im-portance than anyone ever hoped. The telephones in the free paper offices will ring, ads will be placed, and advertis-ers will get results. This will start slowly and then swell like a wave across the print advertising scene. The movement of PaperChain will get member papers discussed in the classrooms of colleges and universities across the country. Pa-perChain will be instrumental in edu-cating media buyers and offering a way to make media buys. New free paper publications will be waiting to have audits started and to sign the partici-pation agreement with PaperChain. A PaperChain branded publication will be recognized as a valuable product to bring into the home. Advertisers will search out papers that belong to Paper-Chain.

Postal rates will continue to increase to a point that many papers will start their own distribution networks. Outlying areas will see more demand or rack

distribution. As this shift happens the audits become even more important. Demand distribution will be consid-ered the best way to reach many mar-kets. The audit and readership num-bers for these papers will easily surpass those of the paid papers in the market. The readership studies will allow the advertiser to know in advance the de-mographics that the papers will reach in a given circulation area. Demand dis-tribution will be the preferred method of delivering niche publications. Many free paper publishers will set up and maintain racks for their niche products. Most of the free paper associations will welcome these papers and encourage them to join.

The future for our industry will be one of change. Old ways will be replaced by new ways. As an industry, our mission and goals will change. However, as long as we stay united in our efforts to pro- mote the industry and never lose sight that PaperChain and all the free paper associations have one goal in mind – to help the individual member - we will succeed.

continued from page 1

The only thing that stands between a person and what they want in life is often the will to try it and the faith to believe it’s possible.

Rich Devos

The man on top of the mountain didn’t fall there.

Anonymous



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 With integrity you have noth-ing to fear, since you have noth-ing to hide. With integrity you will do the right thing, so you will have no guilt. With fear and guilt removed you are free to be and do your best.

Zig Ziglar

By John Foust, Raleigh, NC

Let’s take an intermittently sarcastic look at ten ways to mess up a perfectly good ad. Any one of these techniques will put an ad on the brink of ineffectiveness. All ten at once will guarantee a place in the Advertising Hall of Shame.

1. Keep the focus on product features, not benefi ts. Advertisers are in love with the bells and whistles in the products they sell, and they’d like nothing more

than to put all that stuff in their ads. But consumers don’t care. All of their buying decisions are driven by the an-swer to the age old question, “What’s In It For Me?”

2. Don’t put valuable information in the headline. Expect readers to wade through your copy to learn what you sell, in spite of the studies that show that 80 percent of the people who see a headline will not read any further.

3. Use plenty of exaggerations and su-perlatives. Talk about how great the advertiser’s product is, without sup-

10 ways To mess Up APerfectly Good Ad

continued on page 4



porting any of the claims. Kill your advertiser’s credibility with words like “best,” “number one,” and “great.” And be sure to use a lot of exclamation marks.

4. Make the logo the biggest thing in the layout. That shiny new logo is re-ally important to the advertiser. And even though the headline is much more important, you don’t want to up-set your client.

5. Reverse the entire ad to read white on black. The term “read” is used loosely here. White type (especially body copy) on a black background is nearly impossible to read. An excep-tion to this rule is when a bold, white headline is printed alone inside a black box.

6. Use all upper case type in body

copy. WHY MAKE IT EASY FOR YOUR READERS TO FIGURE OUT WHAT YOU’RE SAYING? MAKE ALL THE LETTERS THE SAME HEIGHT, SO YOUR WORDS WON’T HAVE DEFINING SHAPES.

7. Don’t make an offer, or give readers a reason to act now. That would look too much like selling. Why not just put your advertiser’s name out there, and hope that people will flock to his or her place of business like homing pigeons?

8. Run the ad only once. Forget the fact that a message has to be repeated many times before it makes an impact. You didn’t choose your brand of car or breakfast cereal the first time you saw those products advertised. But your advertiser’s prospective customers are

sure to take a different approach, aren’t they? Probably not.

9. Use stupid pictures. By stupid, I mean laughably inappropriate. Exam-ples include smiling cartoon figures in a funeral home ad. Or a posed photo of a bunch of executives leaning over a conference table to stare and smile at a document. Or an illustration that simply has nothing to do with the ad’s headline.

10. Use small print. After all, the smaller the point size, the more copy you can squeeze into the allotted space. Readers won’t mind reaching for a magnifying glass. Don’t we all keep that handy device with us when we read the paper? (c) Copyright 2009 by John Foust. All rights reserved. E-mail John Foust for information about his training videos for ad departments: [email protected]

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by Joe Bonura

From ToP To BoTTomI watched Peyton Manning and the India-napolis Colts lose in overtime play in the 2009 National Football League wild card playoff game. Th e loss came a few days aft er Peyton was declared NFL off ensive player of the year. Th e same fate befell Matt Ryan, of the Atlanta Falcons, who lost to the Arizona Cardinals a few days aft er Ryan was named rookie quarterback of the year.

wInnerS LoSe TooTh is proves that winners lose too. I am sure that both Peyton Manning and Matt Ryan will be back next year to play again. Real winners learn from their defeats, and they move forward, while losers quit and give up. Manning and Ryan are real win-ners for sure.

IT IS noT ALwAyS eASyAft er a shaky start to the 2008 season, Peyton’s team lost the wild card playoff game aft er a nine-game winning streak. Th e same principles that govern winners in sports could also govern winners in sales. No matt er how successful we may be on a given day, the opposite could hap-pen on another day. Th e secret is to not give up, but to keep going, when the go-ing is not easy. Th e easiest thing to do is to give up, but abandoning your goal leads to an unfulfi lled life and career.

wHen LIGHTnInG STrIkeS

Anyone can sail in calm seas, but not everyone can sail when the wind starts to blow, the sun is blott ed out by dark clouds, and the lightning strikes. Such was the scenario when the San Di-ego Chargers struck the Indianapolis Colts to win the playoff game.

THere IS ALwAyS TomorrowDo winners feel the disappointment? Sure they do. Th e diff erence between a winner and a loser is that winners learn from their failures and move forward to the next season, or the next sales call, as sales superstars do.

neXT TIme IS nowWhat do you suppose Peyton will be doing during the off -season? He will be watching the ill-fated game fi lm to de-termine bett er play strategies, so that next time, he will be bett er prepared. You should do the same thing every time you lose a sale. Look at the game fi lm in your mind’s eye, and consider ways that you can be bett er prepared next time. You can call that lost prospect and ask for advice on improvements to your sales approach, and they will be more than happy to help.

A yeAr To rememBerYou should also remember that some-times, no matt er how good a job you do, you may still lose. Th at happened to me back in 1978, a year I will always remem-ber, when I owned and operated one of

the most successful advertising agencies in Kentucky. We dedicated ourselves to the success of one of our clients, a client that represented 70% of our business. Al-though we were good at what we did and we helped our client succeed and com-pete in a very tough industry, the client decided that they needed a change.

LIFe IS FAIrWe were invited to compete with fi ve other advertising agencies to keep the ac-count. We gave a powerful presentatio,; and yet the client decided to go with an-other agency. My fi rst reaction was that life is not fair. I spent a few days mourning the loss.

STIck yoUr neck oUTI fi nally decided that I was not gett ing anywhere by frett ing over the loss, and that I would stick my neck out of my self-imposed shell and move forward. I began making more sales calls than I had ever made in my life, and within a few months, we obtained some new business and moved forward again. Are you mourning the slow economy, or are you taking ac-tion to change the slow economy?

reTooL And reFocUSW. Clement Stone said, “In every ad-versity, there is the seed of a greater or equivalent benefi t.” Because of the loss of our largest account, we retooled and refo-cused, and within fi ve years, we were the second largest advertising agency in Ken-tucky.

wIn THe SUPer BowLWe lost the playoff s and won the Super Bowl for one reason: We did not give up.

Th e Superbowlof Life

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The Superbowlof Life

continued from page 5

You lose only when you quit. As long as you keep trying, you will get results. In a slow, stalled, or bad economy, there are always people who have money to spend and people who need what you have to offer.

TAke A LeSSon From mAcy’SI was shopping at Macy’s, and the store was full of shoppers in spite of this slow economy because they were responding to Macy’s advertising and marketing. If Macy’s had not aggressively pursued cus-tomer business, the store would not have been full of shoppers.

STeP BAck To moVe ForwArdStop licking your wounds. Step back and

observe where you are in your business and question what you can do today to take positive action toward your goals. If you do not have goals, it is time that you think about what you are going to resolve next year. Make some New Year commitments for 2010. Peyton and Matt are getting ready for a comeback in next year’s NFL season. You should do the same for building your business.© 2009 Joe Bonura & Associates, Inc.Joe Bonura & Associates, Inc. Website: www.bon-ura.com, 407 Landis Lakes Court, Louisville, KY 40245, (800) 444-3340 toll free. E-mail: [email protected]

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The great breakthrough in your life comes when you realize that you can learn anything you need to learn to accomplish any goal that you set for yourself. This means there are no limits on what you can be, have or do.

Brian Tracy

The chief cause of failure and unhap-piness is trading what you want most for what you want now.

Zig Ziglar

Goals. There’s no telling what you can do when you get inspired by them. There’s no telling what you can do when you believe in them. There’s no telling what will happen when you act upon them.

Jim Rohn



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Lesson 10: Put A Smile on your Face(a) Your Voice Quality Is A Factor In Business. To win business with your manner of speech is an accomplishment. Talking well is even better than dressing well, but both are important. Speaking correctly gives a quick and favorable im-pression. Often, you are rated by your use of good language. Since speech is the main way we communicate, make it as useful as possible.

(b) What You Say Makes People Desire What You Offer. When your customers give up their time to listen to what you have to say, you need to know how to compensate them by telling them what they will be glad to know. Learn to use sound logic in every sentence. Try to draw comparisons and give illustrations so perfectly and completely that you prove your points in the briefest way. Then you will possess the first, and best, element of good salesmanship. This way

you are able to clearly state the nature of your business, and the reasons why the prospect should accept your proposal. The proof you give creates the desire for what you sell.

(c) The Way You Say It Makes People Decide To Act. Decision and action are brought about by the true ring in your voice, your earnestness, the kindliness of your manner, and your humble yet posi-tive presentations. You are just an actor. You are sincere and open, and your ex-pression demonstrates your sincerity and candor. Your customer will watch your eye and listen to your words to detect whether or not he can trust what you say. He gives you his business only when a fa-vorable conviction has been reached. You have sold yourself and your goods to him.

(d) Beautify Your Voice With A Smile, And Your Face With Honesty Of Pur-pose. Your customer reads your charac-

ter through how and what you say. As he looks into your face and studies your demeanor, he sees down into your very soul. Be your true self, but first be sure you are true. Sincerity is the good mark of the salesman, as well as that of the true friend, or anyone with class. Sincerity will shower smiles on your voice when selling your product.

(e) Smiles Will Always Come Back To You. When you treat others fairly in busi-ness, you will find they treat you fairly in return. You can generally trust humanity to give you a fair deal, but not unless you have opened the negotiations on the right basis. Your sincerity smiles at the world, and sincerity smiles back at you.

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

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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

conference Schedulesbeen there before. You’ll sample some of 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.

Publishers Summit February 27, 2010: IFPA and SAPA Publishers

will join at the memorable Doral Golf Resort and Spa in Miami, FL. We will be discussing topics of importance to you chosen by you and your fellow publishers in a roundtable format. What a great opportunity to discuss matters of business opportunities or concerns with other like-minded publishers. SAPA and IFPA have a tradition of sharing ideas. This will further that legacy.

For More Information call Gary Rudy 609-408-8000.

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In May and June 2009, the Saturation Mailers Coalition (SMC) sent a 22 question survey to its members. The survey was designed to collect data that describes SMC’s members’ volumes, distribution choices, and marketplace conditions. The survey was also designed to identify the priorities and preferences of saturation mailers, including free paper publishers, shared mail programs, and magazine and letter shaped coupon programs. The survey data was tabulated by SMC’s economic advisor, Toni Crowder of Eagle Analytics. It is being used by SMC’s Steering Committee to shape the association’s advocacy platform and priorities for purposes of meetings with Postal Service management and planning for years to come.

The survey responses reflect the breadth and diversity of SMC’s membership. The respondents that provided volume figures were responsible for more than five billion saturation mail pieces on an annual basis. This is a substantial portion of the USPS commercial flat mail, nearly 44%.

The majority of survey answers came from free papers and shoppers. Approximately 30% of the respondents sent open-sided mail packages and 20% came from coupon publications using a magazine or envelope format. Surveys covered all regions of the

country, with most respondents covering a relatively local market. Two-thirds of the responses came from mailers with a weekly program.

Although most of the respondents had weekday in-home dates, one-third had an in-home date that included Saturday.

The majority of survey respondents offered address suppression to customers that did not want to receive their piece. The number of do-not-mail requests was very small; in most cases substantially less than one percent of all circulation.

The survey asked responders to comment on competitive conditions in their market, to identify major competitors and competitive challenges. The vast majority of survey respondents identified newspapers as primary competitors. The competition included other mailers, magazines, TV, and the Internet. The biggest competitive challenge to competing with newspapers was the inability of program mailers to competitively price their inserting and delivery costs for pre-print FSIs because of the high pound rate. Some interesting comments on competitive conditions, the challenges posed by postal rates, and how mailers struggle to keep advertisers’ business included the following:

It is very difficult with our delivery costs being such a big part of our costs structure . . . non-mailed newspapers or TMCs can deliver a two ounce pre-print for the same price as a single sheet. We generally have much lower margins which can make us somewhat competitive, but that only goes so far.

Competitive pricing is rampant with remnant and fire sale prices almost the norm. We continue to stress value and service and try not to compete solely on price but in today’s market, money talks.

Our rate structure allows inserting of FSIs and single sheets down to the carrier route level. No one in this market does this . . . we are extremely flexible with the FSI delivery deadlines. In some cases special arrangements are made to receive the inserts hours before it is scheduled to be inserted.

Nearly all of the survey respondents commented on private delivery with more than one-third of the respondents using private delivery for a portion of their circulation or actively testing it. Responders provided cost data on their private delivery distribution costs. Private delivery costs ranged from 8 to 11 cents per piece. Many responders commented that private delivery was desirable because it had no weight related charges. In addition to setting up or testing a private carrier force, several respondents were using mailer or newspaper alliances and TMCs to reduce distribution costs. Other respondents were testing or using in-store counters or news racks for demand distribution.

data Shows Postal rates Too High

continued on page 10

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Nearly all mailers commented on poor economic conditions in their market, decreased sales and revenues, and how that impacted their plans to reduce, maintain, or increase circulation. Most respondents stated their advertisers were light weighting or cutting back on their promotions. Many mailers commented that they had reduced prices or were holding on price increases to retain business.

Many respondents were uncertain about their future volumes and circulation plans. Approximately half of the respondents indicated they expected their volume to stay “about the same.” More mailers were planning to decrease volumes than mailers announcing an intention to expand. Planned increases were generally associated with application for the Saturation Volume Incentive Program or increased demand in specific markets. Most program reductions or decreases were blamed on high postal rates, postal operation requirements, and the poor economy. When responses to volume plans were evaluated based on the circulation volumes represented in each response, the SMC survey suggests that saturation mail volumes will likely remain stagnate, or perhaps decline somewhat, over the next 12 months.

Many mailers commented on the Saturation Volume Incentive Program. Some thought it would help them expand circulation or frequency. Approximately two-thirds of all respondents commented that they applied or intended to apply for the program. But only a few of these were certain they would be able to use the program in their market. Many applied “just in case” or to show support for this USPS marketing effort.

The survey sought SMC members’ opinions and comments on postal rate, operations, and policy issues. To help quantify these preferences, respondents were asked to rate the importance of 9 separate issues in order of importance.

This rating showed one common theme for all respondents. All respondents indicated

that a reduction in Postal Service rates, at either the piece rates or the pound rate, were the top 1 and 2 issues of importance to all SMC members. In tabulating the responses, and looking at individual comments, economic analyst, Toni Crowder, had this to say “The general impression from these responses, in combination with responses to some of the other survey questions, is that the overall saturation rate level is too high and both the piece and pound rates are therefore too high. Any movement to stimulating the permanent saturation volume increase will likely require an overall rate level reduction.”

Mailers gave varying reasons for their preference of a piece rate reduction over a pound rate reduction. Mailers favoring the piece rate reduction noted: It would benefit all pieces mailed regardless of weight. It would lower costs to compete with newspapers. All mail has to pay the piece rate. Any savings at the piece rate will help the mailers’ overall program.

Mailers preferring a pound rate reduction often explained the competitive difficulties they face going after pre-print/inserts that can be in other media like newspapers or private delivered programs.

Several free paper publishers pointed out that the pound rate was a high deterrent to continued use of the mail or success with a mailed program. For lightweight pieces, a mailed piece may be roughly competitive with newspapers or private delivery options. As pieces get heavier (more successful) the additional cost of pound rate postage makes private delivery or newspaper distribution more attractive.

A number of publishers commented on their practice of using multiple distribution methods. Lightweight papers or shared mail packages in new markets may be sent by mail. As the product matures, and increases the package weight the mailer or publisher is less willing to give the USPS a big cut of the revenues and is more likely to switch to private carrier distribution.

Several mailers commented on how high postal rates, and related distribution costs and requirements, are forcing them to cut back on markets, reduce business deliveries or marginal circulation, or double up with other mailers to combine mail programs to save distribution costs.

The next top issues on SMC members’ wish lists were the adoption of simplified addressing as an option on city routes or an increase in the high density/saturation mail rate differential. Mailers with smaller volume, were most likely to rank simplified addressing as a top priority. For larger mailers, and mailers in competitive markets with many advertising choices, an increase in the high density/saturation mail rate differential was the number three ranked choice.

Comments on the subject of simplified, were similar to the business case SMC has been making to the Postal Service on its “simplified but certified” proposal for years. Comments include:

“I don’t see any reason why we [must] send our newspaper to every home in a zip code with a label on each newspaper or a DAL for the city routes. It would be savings that goes right to the bottom line that would make us more profitable and able to expand into new markets” to allow simplified.

There are certainly internal cost advantages to moving toward simplified. We would reduce inkjet costs by $15,000 annually and would see a five percent productivity improvement. The product would be in better shape when it went out the door.

From a mailer that is in the process of setting up its own private delivery network “simplified addressing would keep our current levels of mailing consistent. At this point we are converting from mail to our own carriers to get away from the surcharge of the DAL, the costs of printing them, the man hours to address them, etc.”

continued on page 11



For mailers wishing for an increase in the differential between high density and saturation rates, the ability of newspapers to beat mailer’s pricing when going after desirable retail pre-prints, such as big box stores, major retailers, grocers, or drugs, was a constant theme. Mailers noted that the ability of newspapers to blend their private carrier rate, ROP rate, and postage costs into TMC rates, made it easy for papers to undercut the ad prices offered by a 100% mailed delivered product. “We can’t compete for heavier pieces.” Other advantages of newspapers included the shorter lead times, and a daily delivery platform that includes Sundays. Although declining newspaper readership and circulation is making advertisers rethink their media buy, the current pricing of the USPS makes it difficult for 100% shared mailed programs to attract much of this business.

SMC members were also asked to comment on, and rank the importance, of preserving the DAL, retaining service and in-home dates, retaining 6-day delivery, maintaining good public relations and fighting do-not-mail initiatives, and continuing the Saturation Volume Incentive Program. In their rankings, and comments of mailers on these topics, the importance of mailers maintaining reliable in-home dates was stressed. Although many mailers are currently doing programs with a Saturday in-home date, the loss of Saturday delivery was significantly less important to members than achieving reductions in postal rates and maintaining reliable service and in-home dates.

Several responders saw the elimination of Saturday delivery as a scheduling and production dilemma for free papers that use outside printers and vendors, and as a competitive boost, for newspapers. Interesting comments included the following:

“This will cause tremendous problems for our printers who already have full schedules and do not have the empty press space to

just move us to a different day for printing!”

“Saturday is our mailing day. This would definitely affect our whole workflow. Our deadlines for the advertisers would have to be moved earlier. Our production flow would have to change and we would definitely move faster to convert to our own delivery system to continue weekend delivery to our readers.”

We would need to adjust our entire production schedule to ensure delivery in time to guarantee Thursday/Friday delivery. We could not allow for any Monday delivery.

Paid newspapers may pick-up FSIs if direct mail is not delivered on Saturday. It gives the competition and newspapers an effective weekend monopoly.

Although preserving the DAL was not rated as a top priority for a large number of mailers, the use of the DAL remains essential for some program mailers. A few responders noted that DAL revenue helped them survive in tough times. Some commented that they could offer their advertisers a more targeted, versioned DAL product than their saturation program product that might cover a larger circulation.

The value of the Saturation Mail Volume Incentive was also very important to the business of some mailers. A few responders commented “If it were not for the incentive we would be unable to expand at this time.” Another mailer noted that the incentive was minimizing its need to eliminate marginal areas and cut back on frequency. “We are participating in the program and it is allowing us the time needed to stabilize new markets and increase frequency in existing markets . . . it is early in the game but we hope for may be five to 10 million increase monthly by the end of the program.” Many mailers commented that they were still evaluating the Saturation Volume Incentive Program and appreciated the opportunity to apply for it on a market by market basis.

At the end of the day, the survey information

will be used by SMC’s Steering Committee to develop a consensus platform for coalition leaders to take to USPS executives. The Postal Service desperately needs to retain and build its mail volumes. The survey gave our members an opportunity to identify impediments to doing business with the Postal Service and to identify steps the USPS could take to encourage the growth of program mail. By far the strongest consensus message the survey produced for SMC’s leadership was the resounding response that USPS rates for saturation program mailers are too high. The Postal Service is taking too big a bite for mail distribution from the business of our members. If the USPS wants to permanently grow its volumes, business and market share with saturation program mailers “lower postal rates” suggestions like the following were seen repeatedly in survey comments:

Reduce rates for saturation program mailers by 10 to 30%.

To consider any major expansion we need a permanent 10 to 15% discount for all saturation mail. Postage has become too high a percentage of our cost base to justify further expansion with our current model.

Allow saturation letter mailers to send heavier letters without charging us as flats until the 5 ounce weight limit is met. This meets the tolerances of most automation equipment.

Realize that we need to be profitable to expand into new markets. If the Postal Service would permanently lower our rates, we could launch an additional one to two papers per year and expand frequency.

SMC leadership has scheduled a meeting with Deputy PMG Patrick Donahoe, Robert Bernstock, President Mailing Services, Stephen Kearney, Senior Vice President of Customer Relations and Maura Robinson, Vice President Pricing, for the end of September. SMC’s leadership will do everything it can to aggressively represent the views of our industry at that time.









SAPA Board Members pose with the fun SAPA Home Run Derby posters designed and created by students at Honeysuckle Mid-dle School in Dothan, Alabama. Their art teacher, Hannah Braswell, may have given them a bit of direction. SAPA is indebted to these talented students and their teacher for the great visual aids that helped make our conference a Home Run.

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Plan now for another 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. You’ll sample some of 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. See you there!

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2009 October