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VISIT US AT WWW.SAPATODAY.COM Southeastern Advertising Publishers Association (931) 223-5708 (888)450-8329 fax 1 SAPAToday Advancing the ee paper industry by providing resources for success and venues for sharing ideas. 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 Sell Beyond e Overlap John Foust shows us how to sell when the competition has similar products and they “overlap.” Page 3 Conference Schedule SAPA and AFCP Joint Conference & Trade Show, April 9-11, 2015. Savannah, Georgia Page 8 Graphics Series Ellen Hanrahan gives us some more excellent ways to make a photo graph stop just laying on the page. We want it to Pop Off the Page. Page 5 Work Positively Dr. Joey Faucee teaches us ways we can positively deal with interruptions. ey happen all the time and keep us om being efficient. Page 6 5 Ways To Creatively Promote Your Paper Bob Berting, Mr. Community Paper, shows us 5 ways to creatively promote our publications Page 4 by Douglas Fry Savannah in the Spring will be beau- tiful. We have chosen a Marriott Ho- tel right on the riverfront to surround the conference with picturesque views and great fun. But there is much more than an awesome city and an attractive hotel. SAPA and AFCP are excited to an- nounce that Steve Baker will be the opening Keynote of the Savannah Conference. Steve is the Vice Presi- dent of The Great Game of Business, Inc. Known for his high-energy and engaging message, Steve has become a top-rated and sought after speaker, author and coach on topics of Open- Book Management, Strategy & Execu- tion, Leadership and Employee En- gagement. Steve co-wrote the update of the #1 Bestseller, The Great Game of Business 20th Anniversary Edition. Steve’s message in Savannah is enti- tled, “Rapid Financial Results & Last- ing Cultural Change” will offer attend- ees an engaging look at the origins and fundamentals of open-book man- agement and The Great Game of Busi- THE MONTHLY NEWSLETTER FOR THE FREE PAPER INDUSTRY NOVEMBER 2014 Join Us In Savannah April 9 - 11, 2015 ness. Based on Jack Stack’s bestselling book, The Great Game of Business is a unique and well- proven methodology and approach to running a company, based on a simple, yet powerful be- lief; “When employees think, act and feel like owners... everybody wins.” This proven operating system teaches people business, holds them account- able and provides them a stake in the outcome. We look forward to seeing you in Sa- vannah, Georgia on April 9 - 11,2015 Watch for more details coming soon.

2014 November

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Page 1: 2014 November

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) 223-5708 (888)450-8329 fax 1

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

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

Page 3

Sell Beyond The OverlapJohn Foust shows us how to sell when the competition has similar products and they “overlap.”

Page 3

Conference ScheduleSAPA and AFCP Joint Conference & Trade Show, April 9-11, 2015. Savannah, Georgia

Page 8

Graphics Series Ellen Hanrahan gives us some more excellent ways to make a photo graph stop just laying on the page. We want it to Pop Off the Page.

Page 5

Work PositivelyDr. Joey Faucette teaches us ways we can positively deal with interruptions. They happen all the time and keep us from being efficient.

Page 6

5 Ways To Creatively Promote Your PaperBob Berting , Mr. Community Paper, shows us 5 ways to creatively promote our publications

Page 4

by Douglas Fry

Savannah in the Spring will be beau-tiful. We have chosen a Marriott Ho-tel right on the riverfront to surround the conference with picturesque views and great fun. But there is much more than an awesome city and an attractive hotel.

SAPA and AFCP are excited to an-nounce that Steve Baker will be the opening Keynote of the Savannah Conference. Steve is the Vice Presi-dent of The Great Game of Business, Inc. Known for his high-energy and

engaging message, Steve has become a top-rated and sought after speaker, author and coach on topics of Open-Book Management, Strategy & Execu-tion, Leadership and Employee En-gagement. Steve co-wrote the update of the #1 Bestseller, The Great Game of Business 20th Anniversary Edition.

Steve’s message in Savannah is enti-tled, “Rapid Financial Results & Last-ing Cultural Change” will offer attend-ees an engaging look at the origins and fundamentals of open-book man-agement and The Great Game of Busi-

THE MONTHLY NEWSLETTER FOR THE FREE PAPER INDUSTRY NOVEMBER 2014

Join Us In SavannahApril 9 - 11, 2015

ness. Based on Jack Stack’s bestselling book, The Great Game of Business is a unique and well- proven methodology and approach to running a company, based on a simple, yet powerful be-lief; “When employees think, act and feel like owners... everybody wins.” This proven operating system teaches people business, holds them account-able and provides them a stake in the outcome.

We look forward to seeing you in Sa-vannah, Georgia on April 9 - 11,2015 Watch for more details coming soon.

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Southeastern Advertising Publishers Association (931) 223-5708 (888)450-8329 fax 2

Board MemberKathy CrumptonPiedmont Shopper

Danville VA434-822-1800

Past PresidentTony OnellionBargains PlusSlidell, LA

985-649-9515

PresidentCaroline

QuattlebaumSoutheast Sun

Enterprise, AL 334-393-2969

Past PresidentRussell

QuattlebaumSoutheast Sun

Enterprise, AL 334-393-2969

Board MemberGreg Ledford

Shelby Shopper & Info

Shelby, NC 704-484-1047

Vice PresidentWill ThomasExchange, Inc.

Fayetteville, TN 931-433-9737

SecretaryMike Marlow Rutherford WeeklyForest City, NC828-248-1408

TreasurerTodd Godbey

Livin’ Out Loud Magazine

Wilmington, NC 910-338-1205

Executive Director

Douglas FrySAPA Headquarters

Columbia, TN931-223-5708

Administrative Assistant

Vickie BeldenSAPA Headquarters

Columbia, TN931-223-5708

SAPA Leadership

by John Foust

Meredith has been selling advertising for many years. “Watch out for over-lap,” she told me. “It’s a big challenge in the sales profession. Just like all com-panies who compete with each other, my paper and my competitors offer a

in Choice A, when Choice B offers the same thing?”

Here are some common areas of over-lap:

1. AUDIENCE:“To sell beyond the overlap, this is a

Sell BeyondThe Overlap

continued on page 4

lot of the same things. I’ve heard that – depending on the industry – feature overlap can be more than 50 percent.”

According to Meredith, when a sales person focuses on things that the competition can do just as well, there’s little chance for differentiation. The prospect thinks, “Why buy advertising

If you are interested in serving on the SAPA board please give our president, Caroline Quattlebaum, a call at 334-393-2969. Ser-vice in our industry is fulfilling, enjoyable and gives you sense of accomplishment. Besides that you give back to the industry that enjoy. SAPA works hard to keep you informed and up-to-date on the latest advances and trends in publishing.

We’d love to talk with you about how you can give back.

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good place to start,” Meredith said. “The number one media question that advertisers have is: ‘How many pro-spective buyers will my ads reach?’ All sales people talk about audience, but not many of them acknowledge the fact that other media choices reach some of the same people.”

Selling beyond the overlap forces you to analyze how many of your advertis-er’s prospects you – and your competi-tors – can reach. With facts on your side, your selling approach becomes: “Of course, we cover x-audience, like so-and-so does. But let me show you where we reach more people (better

quality buyers, etc.)”

“Even when you’re selling against TMC (Total Market Coverage) prod-ucts, there can be gaps in coverage,” Meredith said. “You’ve just got to look for them.”

That leads us to another possible source of overlap.

2. MARKET RESEARCH:More and more media companies are offering research services to their ad-vertisers. This can be a good point of differentiation.

“It’s important to promote your re-

search department as an objective source of information,” Meredith said. “If advertisers start to think it’s just to stack the deck in your favor, they’ll turn away.”

3. AD PRODUCTION:“Although most media companies are capable of producing ads, this is where you can put some distance between you and your competition,” Meredith explained. “Unless your prospect uses an ad agency, your creative team will have a big influence on the content and style of the advertising. In fact, you might close the deal, if you have some good examples of ads your paper has created – both print and online.”

4. FLEXIBILITY:“Advertisers are concerned about adaptability,” Meredith explained. “How quickly can they adjust to shift-ing market conditions? Obviously, dai-lies can outmaneuver weeklies, and weeklies can outmaneuver monthlies. On the other hand, it looks like online marketing levels the playing field. But there are bound to be gaps.”

5. CUSTOMER SERVICE:“Actions speak – and sell – louder than words,” Meredith said. “Everybody talks about their great customer ser-vice, but how many actually walk the talk? If your competitors are slack in this area, you can position yourself as extraordinary.

“It’s better to talk less – and do more – about customer service. Demonstrate your customer-centered philosophy by returning phone calls and emails right away, by keeping your accounts informed about their ads, and by send-ing hand-written thank you notes.”

(c) Copyright 2014 by John Foust. All rights reserved.John Foust has conducted training programs for thousands of newspaper advertising professionals. Many ad depart-ments are using his training videos to save time and get quick results from in-house training. E-mail for informa-tion: [email protected]

By Bob Berting, Berting Communications

A brand is what a customer perceives of a publication. In its most simplistic form, branding is “emotional connec-tions between a newspaper and the market it serves.” Let’s examine 5 ways to promote your publication brand in the marketplace:

1- SERVICE CLUBSJoin a Kiwanis, Rotary, Optimist, or Lions Club. The relationships you can build in these organizations is very important. This exposure is a true top of mind awareness experience and can be invaluable to you and your publication. Also go speak to service

clubs about your publi-cation. They are looking for speakers and you can’t ask for a better captive au-dience of business people.

2- UNITED WAY AND OTHER CHARITY ORGANIZATIONS

Your publication needs to be perceived as a helpful publication that is willing to run United Way articles and ads at no charge. Charity connections are important and even participating in public TV auctions and fundraising is a high profile activity in your market-

continued on page 7

5 Ways to CreativelyPromote Your Paper

Display & Classified Ad Sales & BillingCirculation Direct Mail Payroll Accounting

Integrated Management Software designed by publishers for publishers

MERRIMAC SOFTWARE ASSOCIATES INC.TAMWORTH, NH 603 323 8811 WWW.MERRSOFT.COM

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I welcome your input and suggestions. A former art teacher, I entered the free paper publishing business in the early 80s. I write for IFPA, Community Papers of Michigan, and am still learning. E-mail: [email protected] Ellen Hanrahan ©2014

Photograph Fun 2LAST MONTH WE EXPLORED SOME OF THE WAYS TO ADD DIMENSION AND IN-TEREST TO OUR PHOTOS. THERE ARE STILL MORE EFFECTS THAT WE CAN APPLY TO OUR PHOTOS SO THAT THEY DON’T APPEAR TO JUST LAY ON THE PAGE…

And we continue with some photo effects that can be used to add a little more dimension/visual interest to a photo in your papers. I would probably use most of these effects in editorial or special sections, but nothing says they won’t work in an ad as well. As a matter of fact, I received my October Milwaukee Magazine a day or two after I sent the article (see below). I literally gasped! Now, maybe they printed individual photos and laid them on top of one another and “shot” the results or added a border and created the file as we saw last month. It doesn’t matter because the impact of that effect is pretty awesome! And yes, there are little “drop shadows” around the white borders of the photos. So let’s get on with some more ideas that can be done with photos.

CREATE YOUR OWN FASTENERS 2 How about using the “old-fash-ioned” corner tabs that were prevalent in early photo albums? Just draw a triangle, fill with a neutral color and add a thin drop shadow, then place on

the appropriate corner. I used a square and deleted a point to get a nice triangle. Then all you need to do is rotate that triangle to place on the corner. May I also suggest that once you have cre-ated the four different corner “tabs” that you put them in a library. That way you can use them over and over and they will all be the same size—be consistent!

ADD A LITTLE CURVEPhotos rarely lay flat, so you could add a little bit of a curve or curl to the shadow. The best way is to draw the shape

to the right, fill and blur the edges of the shape and then place the photo. Once again, save these into a library for future use. If you were good at drawing this shape freehand with the pen or pencil tool—great! I can’t. So I drew a rectangle, filled it with black so I could see what I was doing, then used the Ellipse Tool,

DON’T FORGETTHE POLAROIDYou don’t forget one of the first “instant” (as in at least three min-utes!) cameras to ever come on the market. No developing—just wait for the image to appear. Hopefully, you did everything cor-rectly so the inks wouldn’t run! Anyway, this effect allows you to pen personal

notes and reminders onto the surface. The wide bottom margin is distinctive, so as long as you stay kind of square with the photo and keep top and side margins equal, this effect is easy. Plus you can also stack, group, clip and tape as we’ve seen in the other samples.

A BRIEF RECAPAll of these effects can be used through-out your pages. Add a little more interest to Ribbon-Cuttings, Social Functions, Sporting and Community-wide Events. The photos can create a little more dimension, and add more visual interest to your pages. These are just a few ideas to get you started. And again I stress, save sam-ples or format to a Library, so they will always be available to you!

filled it with white and created a long narrow ellipse to fit on the two sides of the rectangle. I then went to the Pathfinder Tool and used the “Subtract” function (subtracts front object from back object) and repeated the same for the top and bottom. It’s not perfect, but it doesn’t have to be, plus it didn’t take a lot of time! I “feathered” the edge with the Basic Feather Tool and gave it a width of 0p4 to soften it and final-

ly placed the photo on top. I also enlarged the shape slightly as well to better enhance the photo. This is usually a judgement call, based on the page, the infor-mation and the final effect. Once I was sure where I wanted the edges to fall, I lightened the shape about 50% in this case, but again, experiment and see what works best for you. I’ve also includ-ed some different positions with the curved shape to see what can be done by adjusting angles and posi-tions. By the way, my best advice on this page— use the Ellipse and Pathfinder Tools to save time!

Get more “curl” when the shadow is moved horizontally (right). The top seems to lift when you shorten the shadow (far right). So try different placements.

Milo & Otis

Until next time!

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Work Positive3 STRATEGIES TO DEAL

POSITIVELY WITH INTERRUPTIONS

Dr. Joey Faucette

Interruptions intrude everywhere into your daily flow: marriage conversa-tions (and other intimate activities if you have children at home), phone conversations, and your work flow.

Research indicates that it takes you anywhere from 10-20 minutes to re-engage fully with the task you aban-doned when interrupted. So if you en-counter 3 interruptions daily at work, that’s about one hour lost.

So when was the last time you had just 3 interruptions?

More like 33, right?

How well do you deal with these inter-ruptions?

Implement into your work flow these three strategies for positively dealing with interruptions and watch as your sales increase with greater productivity and you get out of the office earlier to do what you love with those you love:

LISTENThere is a line in the movie Pulp Fic-tion that goes something like this: “Are you really listening or just waiting to talk?”

As we really listen to each other, our eyes contact, our intellect and emo-tions connect, and we give full atten-

tion to the communication experience. An interruption-resistant bubble forms around us…if we’re really listening.

The common courtesy of listening isn’t so common these days with mobile technology’s immediacy ever in hand. A beep or ding intrudes with alarming regularity.

The path to extreme productivity lies in really listening to people and proj-ects. When you listen, you focus in-tently and deflect interruptions.

LOCATEInterruptions happen regardless of how well you listen. A client calls. A customer walks in. A team member has a question.

Locate your interruptions strategically. Establish appointments with yourself to return voice mail calls and emails. Create team meeting experiences and push others to jot down questions and bring them to that time.

When you must put out a fire, locate your place in the project or the con-versation. Think of it as a bookmark, or dog-earing a page. Jot a post-it note. This simple act reduces your search time in getting back into the flow.

LEVERAGESometimes an interruption is fortu-itous. It intrudes with new informa-tion that is directly applicable to a person or project. Leverage it in that

moment with gratitude.

Or, the interruption brings knowledge relevant to another task on your to-do list. Locate it for easy reference later. Make a quick note for later leverage and return to the person or project at hand. By doing so, you keep your cur-rent listening engaged, locate it read-ily when you’re ready, and leverage the interruption, transforming it from pain to profit.

Sure, interruptions intrude multiple times daily. When you listen, locate, and leverage them, you implement your profitable actions with greater productivity while increasing sales so you get out of the office earlier to do what you love with those you love.

Dr. Joey Faucette is the #1 Amazon best-selling author of Work Positive in a Nega-tive World (Entrepreneur Press), coach, and speaker who helps business profes-sionals increase sales with greater produc-tivity so they can leave the office earlier to do what they love with those they love. Discover more at www.ListentoLife.org.

GIVE YOUR BUSINESS A FACELIFT!Update your business and improve your image by advertising in

over 4 million homes for only $349. Call us today.

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place.

3- OPEN HOUSE EVENTA weekly newspaper decided to have an open house event for their inac-tives, regulars, and prospects. They decided on a provocative theme “Once a week does it.” Plastic buttons with the theme copy were made and worn by all members of the publica-tion weeks before the open house. The open house happening had the follow-ing arrangements:

All personnel wore their button---the setting was a popular hotel with a pool, where the festivities took place—there was live music by a popular trio, champagne punch fountain, hot hors d’oeuvres, and a wine bar.

Invitations went to 200 people and 125 attended. The paper had a color-ful display booth and their key per-sonnel were present to give informa-tion and answer questions. Most of the expense was traded off. It was wildly successful.

4- PROMOTIONAL POINTERSA progressive newspaper needs a memorable memory hook, a slogan that stirs the imagination and can be put on all mastheads, sales materials, sides of delivery trucks, etc. Advertis-ing specialties are great reminders and the greatest items are ones that can be used in the kitchen of your custom-er’s homes. They include yardsticks,

jar openers, sponges, and magnetic signs that go on refrigerators. Your logo should be on refrigerators in your market area.

5- INTERNET MARKETINGThe big issue is promoting your pub-lication website. You must be patient with expectations. The flow of com-munication goes from making a pros-pect a friend, then a customer, and fi-nally a loyal customer who will come back again and again to your website. This process is enhanced by a system of indoctrination, teaching the viewer about your publication, in effect tell-ing the story of your publication.

Final Thought. Create an integrated promotion plan that ties together all

Core Valuecontinued from page 4

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.

the various strategies, marketing ve-hicles, and objectives into a long range program. Branding pre-sells the prod-uct and as such, is a more efficient way to sell things. And finally, remem-ber that branding can mean emotional connections to the marketplace.

Bob Berting, newspaper marketing con-sultant, has published his new e-book for sales professionals in the newspaper in-dustry entitled “Advanced Selling Skills For The Advertising Sales Pro”. This is a publication for beginning salespeople who can learn advanced selling techniques and experienced salespeople who can sharpen their selling skills. Salespeople can learn more about this publication by using the link www.adsalespro.com and see the table of contents as well as reading the complimentary first chapter. Payment of 24.95 to download the 34 page e-book.

Bob Berting is a professional speaker, newspaper sales trainer, and pub-lisher marketing consultant who has conducted over 1500 live seminars and tele-seminars for newspaper sales staffs, their customers, and print me-dia associations in the U.S. and Can-ada. His 40 year background includes 15 years in newspaper management, 5 years as university marketing instruc-tor, and owner of a full service adver-tising agency for 20 years.

Bob can be contacted at [email protected] or 800-536-5408. He is located at 6330 Woburn Drive, Indianapolis, In 46250.

Southeastern AdvertisingPublishers Association

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SAPA AND AFCP JOINT CONFERENCE & TRADE SHOW,

APRIL 9-11, 2015The perfect setting for this annual networking extravaganza - Savan-nah’s Marriott Riverfront Hotel in the heart of historic Savannah, Georgia! Stay tuned for details on a program that is sure to be packed with ample networking, educational, motivational

Conference Schedulesand entertainment opportunities for everyone.

This annual industry celebration pro-vides something for everyone - from publishers and marketing profession-als to editors and support staff, the in-formation gained from this conference provides for the growth and profes-sional development publications can build on all year long.

N E W S P A P E R P R I N T I N G C O M P A N Y

N E W S P A P E R P R I N T I N G C O M P A N Y

N E W S P A P E R P R I N T I N G C O M P A N Y

N E W S P A P E R P R I N T I N G C O M P A N Y

A c c o u n t E xe c u t i ve

5 2 1 0 S O U T H LO I S AV E N U E / TA M PA , F LO R I DA 3 3 6 1 1( 8 1 3 ) 9 0 2 - 1 1 9 6 / C E L L ( 5 6 1 ) 2 3 9 - 2 4 9 5P ro d u c t i o n : ( 8 1 3 ) 8 3 9 - 0 0 3 5 / FA X : ( 8 1 3 ) 8 3 9 - 7 2 9 5E M A I L : d o u g s @ N P C p r i n t i n g . c o mw w w. N P C p r i n t i n g . c o m

Doug Schwenk

“A clear vision, backed by definite plans, gives you a tremendous feeling of confidence and personal power.”

Brian Tracy

“It is one of the most beautiful compensations in life... we can

never help another without helping ourselves.”

Ralph Waldo Emerson

“Promise only what you can deliver. Then deliver more than you promise.”

Unknown

Contact Alan Spiegel at (301) 949-9766 or [email protected] for further information.

Boomer & Senior publications continue to growin readership and revenue.

Start your own Beacon - with our help, you can be publishing in your own exclusive area within 90 days.

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USPS UpdateRATE NEWS, PROMISES AND

PREDICTIONSPostal Board of Governors Announces

No 2014 Price Change Filing

On October 1, 2014, the Governors of the US Postal Service announced that they have decided not to seek a price change for mail and shipping products and services in January 2015 due to the uncertainty regarding the exigency price increase and the pending exigen-cy appeal.

Typically the Postal Board of Gover-nors, and the Postal Service, would be filing a proposed postal rate adjust-ment with the Postal Regulatory Com-mission (PRC) in late September early October for a cost of living price in-crease, with the new rates to go into effect in January of the following year.

On the day of the Governors’ an-nouncement, the Postmaster General, Patrick Donahoe, was addressing a group of mailers at a Board Meeting for PostCom, the Association of Postal Commerce. Donna Hanbery, Execu-tive Director of the Saturation Mail-ers Coalition (SMC) asked the Post-master General if he could give any hints about the timing of a 2015 price change and whether or not the Post-al Service would commit to limiting postal rate adjustment in 2015 to only one change. Although the Postmaster General could not make any promises or firm statements, he acknowledged the challenges for mailers in planning for rate adjustments. SMC, and other mailer associations, have continu-ally stressed to the Postal Service the importance of rate predictability, sta-bility, and adequate time to plan and communicate with customers about

postal rate changes.

The official USPS Industry Alert com-municating the decision to postpone a PRC rate filing contained this state-ment “The current pricing of postal products of services will remain in ef-fect through the holiday season and early part of 2015. The Board will continue to evaluate pricing strategies and will communicate about any po-tential price change filings in 2015.”

COURT OF APPEALS HEARS EXIGENCY ORAL ARGUMENTS

On September 9, 2014, a three judge panel of the US Appeals Court heard oral arguments from the Postal Service, the PRC, and an association of mailers about the propriety of the PRC deci-sion to limit the Postal Service 4.3% exigency increase to a period of time that would allow the USPS to recoup approximately 3.2 billion in revenue that the PRC found that was “due to” the Great Recession. The panel was hearing competing appeals from the Postal Service, seeking to make the 4.3 exigency rate increase permanent, and mailers asserting that the USPS should have been denied any exigency in-crease on the grounds that the Service did not meet the legal proof of causa-tion requirement to establish what rev-enues losses were due to the recession as opposed to electric and digital di-version and other changing consumer communication patters.

The three judge panel was animated and well versed on the issues.

The oral arguments began with the Postal Service attorney, an appellate lawyer from an outside firm named Paul Clement, arguing that the PRC decision was arbitrary and capri-

cious. Clement stated that the PRC had “shorted” the Postal Service on the money it lost from the recession by applying two rules, developed by the PRC in the exigency case, to un-fairly limit the amount of the Postal Service’s losses. The “count once” rule limited the Postal Service to recover-ing revenue it lost due to the recession in one year to that year alone. Postal Service counsel argued that the losses shown should be compounded year over year of the recession and beyond. The second rule critiqued by the Post-al Service was the “new normal” rule. The new normal was the period of time when the PRC reasoned that the Postal Service should have adjusted to its reduced revenues and should not be able to look to mailers to make up its revenue losses. Counsel for the Service argued that the time the PRC found the “new normal” began was at the bottom of the recession and that additional time should have been giv-en to the USPS to recoup losses.

No sooner had Clement summarized his two points, he was peppered with questions from the panel. The initial questions and panel comments strong-ly suggested that the judges were criti-cal of the Postal Service’s efforts to seek an exigency increase that went on “for-ever.” The panel, and the mailers’ at-torney, David Levy, also questioned the Postal Service on what it had done to account for electronic diversion. The judges noted that the recession may have tipped some consumers to switch to digital and electronic sooner, but that the explosion of new electronic applications, and the growth of broad-band and digital penetration, made it

continued on page 9

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likely that some consumers and mail-ers were leaving the Postal Service and hardcopy and were not returning - with or without the recession.

The PRC was represented by the De-partment of Justice (DOJ) in its task of defending the PRC decision. The DOJ attorney did a commendable job of describing the difficulties the PRC was facing in determining issues of causa-tion. The panel appeared sympathetic to the tough tasks facing the PRC and repeatedly acknowledged that some es-timating would have to be justified in facing such a myriad of economic, and communication channel changes.

The panel repeatedly stated that it needed to be highly deferential to the expertise and role of the PRC in its role as a regulator, carrying out its Congres-sionally mandated mission of determin-ing whether or not the recession would qualify as a “extraordinary event” and what Postal Service losses were “due to” the recession.

In spite of its deference to the PRC, the panel expressed some concern that the “count once” rule combined with the “new normal rule” might serve to un-reasonably limit the amount of, or time periods for calculating losses that the Postal Service was entitled to recoup from the Great Recession in the form of an exigency rate increase.

Although it is always possible that the judges could say one thing, and do an-other, the comments of the panel led the mailer associations bringing the ap-peal to speculate as follows:

• It seems unlikely that the Court of Appeals will determine that exigency rates should last forever. It does not appear likely that the Postal Service will win on that ground.

• There is some concern that the panel will believe that the PRC was not ex-plicit enough in justifying why its count

once and new normal rule were fair in limiting the amount of recession relat-ed losses. The Court of Appeals could remand the case to the PRC for further proceedings that could range from ev-erything from writing a more detailed opinion in support of its order and to explain its computations and support for the application of the count once and new normal rules (an approach that would not require reopening the case or taking further comments) to a remand that leads the PRC to con-duct further proceedings and take further comments that could result in an amended order or decision that in-creases the amount of revenue the Post-al Service is entitled to recoup with the exigency increase. If the PRC does the latter, the case could be reopened and continued for several months into 2015 with the exigency increase remaining in effect for a longer period of time.

• The judges could defer to the PRC as the expert regulator and uphold the PRC decision.

At this point in time, it seems unlikely that the industry appeal challenging the approval of the exigency increase would be approved, but the industry appeal created an opportunity for mail-ers to more broadly weigh in and sup-port the PRC, and its DOJ counsel, on the reasons for limiting the exigency increase.

The Court of Appeals took the compet-ing appeals on an expedited schedule. The final decision from the Court is ex-pected before the end of the year, and perhaps earlier.

2014 MAIL DRIVES MOBILE COMMERCE PROMOTION

BEGINSOnce again, the Postal Service is offering a two month promotion running from November 1, 2014 until December 31, 2014 where Standard Mail letters and flats, including nonprofit mailings, can earn a 2% upfront discount if the mail

continued from page 8 piece includes print/mobile technology that can be read or scanned by a mobile device and leads the recipient to a mo-bile optimized shopping website.

Unlike earlier holiday mobile promo-tions, this promotion requires prior registration. There are also require-ments about the ability of the barcode, and corresponding website, to facilitate a purchase and requirements about the placement of the barcode. (For exam-ple, the barcode could not be placed on a detached address label (DAL) that ac-companies a saturation mail flat as the DAL is considered as part of the label and not the corresponding “piece.”)

The registration period began on September 15, 2014 and continues until the end of the year. For pro-gram requirements, registration, and additional information, mail-ers can check on the Postal Service RIBBS website under mailing promo-tions at: https://ribbs.usps.gov/index.cfm?page=mailingpromotions.

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