2010 User Conference April 23 rd – 25 th, Philadelphia, PA Leveraging USPS® Technology To Save Shippers Money Wing Ng Business Development DYMO Endicia.

2010 User ConferenceApril 23rd – 25th, Philadelphia, PA

Leveraging USPS® Technology To Save Shippers Money

Wing NgBusiness Development

DYMO Endiciawww.endicia.com


The USPS Advantage• Ship to US territories with domestic rates

• Ability to ship to APO’S, FPO’s and Post Office™ Boxes

• Eliminates residential and rural surcharges

• Eliminates address correction charges

• No minimums, no certifications or audits

• Invisible postage amounts for USPS shipments

• Data entry scans on USPS parcels and improved package tracking

• Integrated customs forms as part of the label for USPS shipments

• Free Carrier Pickup™

• Reduced rate insurance


Why Ship With The Postal Service™?• Save with USPS® Rates

• Priority Mail®, 1-5 lb residential, packaging• Flat rate box

• First-Class™ parcels• Parcel Select®• Media Mail® (Books, CDs)• Priority Mail International®, Express Mail International®• No hidden charges like

• Residential, Rural, Address Correction, Fuel surcharges• Reduce Losses, Increase Service• Saves Time & Money

• Eliminates trips to Post Office™• Saves $0.40-$0.70 with electronic DC & SC• Saves up to 67% with discount insurance


High Volume Incentives• Commercial Plus™ Pricing

– Saves avg. 9.6% over retail for Priority Mail® and avg. 16.5% over retail for Express Mail®

• Negotiated Service Agreements

• ½ pound price for CPP Priority Mail®

• Save $0.55/package on average over 1lb. Rate

• Commercial Plus Cubic pricing

• For small dense, space-efficient packages


USPS® Maintains Advantages1lb Package

Carrier Ground

Priority Mail®

Base Rate (zone averaged) $5.28 $5.14

Residential Surcharge $2.20 $0.00

Extended Delivery Area Surcharge

$2.75 $0.00

Fuel Surcharge (5.0%) $0.51 $0.00

Subtotal $10.74 $5.14

Address Correction $5.00 $0.00

Total $15.74 $5.14


USPS® Maintains Advantages


Endicia Roots

MicrosoftDirect Mail

Manager

ParentCompanyFounded

1976

HardwareIBIP

Win 100Award

EnvelopeManager

Dial-A-Zip

DAZzle SoftwareIBIP

endicia

1989

1991

1992

1994

1997

1998

2000


A Technology for Growth

$1.3 billion and 25% growth in 2009 even with bad economy

Endicia

All Other Providers

Billions in Postage Printed


Questions and Answers

More information:

800-576-3279 x 140

[email protected]


Captain Dave’s Secrets for Saving Some Samoleans

By David Reeder

Captain Dave, Inc.


Make Money When you Buy a Product

• If you buy for $50 and sell for $100– $50 profit, 100%

• If you buy at $40 and sell at $100– $60 profit, 150%

• If you buy at $40 and sell at $90– $50 profit, 125% profit

• If you buy at $40 and sell at $80– $40 profit, 100%


Save on Cost of Goods• Ask your largest suppliers for:

– Volume discounts– Special terms– Free shipping– Dating orders– First pick on close outs and liquidations– Buy out of season goods


Step 1: Build Relationships with Your Key Suppliers

• Pay your bills on time

• Increase your business with them year over year

• Get to know key people

• Be friendly, be helpful, give referrals

• Don’t whine and complain


Step 2: Ask for Discounts• Nothing ventured, nothing gained

• You won’t get it if you don’t ask


Step 3: Avoid False Bargains• Don’t buy something you cannot sell, no

matter how low the price is

• Be patient, the price might be lower next month


Play Suppliers Against Each Other

• Negotiate rates with one

• Take those rates to the other

• Go back to the first


Warehouse Space• Landlords are hurting

• Commercial vacancies are high

• This is an opportunity for you


Employees• Money is not the only motivator

– Flex time/unusual hours– Ability to work form home– Vacation time/unpaid time off– Business travel


Services• Shipping

• Credit card processing fees

• Banking

• Insurance

• Legal advice, accounting services

• Janitorial services

• Telephone



Reducing the cost of Accepting Payments

Largest Costs-Labor-Rent-Advertising-Bank Fees (Credit Card Processing)


• Confusing• Complicated• Unreadable

Statements• Rate Changes• Bank Reserves• Held Deposits


Cost You Can’t Control

• Hard Costs from Visa – MasterCard (Interchange)

• Type of Card being Presented


You Can Influence:

– Billing Plan– Internal Procedures– Negotiable Rates– Your Provider or Processing Bank


BILLING PLANS1) Bill Back2) ”Bucket or Tiered” Billing

-Qualified Rate-Mid Qualified Rate-Non Qualified Rate

3) Interchange Plus Billing or Pass Thru Pricing


“WHAT IS INTERCHANGE”“Fees paid to the Issuing Bank by the Acquiring Bank collected

from the Seller (You) and set by the Credit Card Associations for the purpose of facilitating payment transactions.”

“WHAT ARE DUES & ASSESSMENTS”“Fees paid to the Card Brand by the Acquiring Bank, collected

from the Seller for the purpose of administration and promotion of the Brand.”



TRUE COST… Really, Really

TYPE INTERCHANGE

DUES & ASSESSME

NTS

EFFECTIVE RATE

Visa Debit 1.60% .11% 1.71%

Visa Standard

1.80% .11% 1.91%

MC Standard 1.89% .0950% 1.98%

MC World 1 2.50% .0950% 2.59%

Visa Rewards

1.95% .11% 2.06%Over 200 Card Types!


Visa Consumer Credit

Master Card Debit

Visa RewardsMaster Card World

Visa CorporateMaster Card Foreign

“BUCKET” BILLING


INTERCHANGE PLUS BILLING

You pay a fixed “mark up” over interchange

Guaranteed Lowest Rate per Card Type

Rate Changes are miminized

LOWEST COST FOR CREDIT CARD PROCESSING!


You Can Influence:

– Billing Plan– Internal Procedures– Negotiable Rates– Your Provider or Processing Bank


Internal Procedures

POTENTIAL DOWNGRADES-AVS Missing-Transaction ID Missing-3 Day Settlement-Authorization & Settlement Amounts do

not match-10 Day Non Settlement


You Can Influence:

– Billing Plan– Internal Procedures – Negotiable Rates – Your Provider or Processing Bank


Gotcha’ Fees-Set Up Fees, Application Fees-Teaser Rates on Qualified Discount Rate-Premiums Above Actual Association Fees:

Master Card Cross Boarder Fee .55%Visa International Fee .45%Discover International Fee .75%Visa Access Fee $.0195Master Card Access Fee $.0185Discover Data Usage Fee $.0075

-Double Billed Transaction Fees-Transaction Fee Premiums on Non Qualified Transactions-Batch fees as a premium over Transaction Fee-Returns calculated with greater Discount Rate than original Trans


Legitimate Fees-Discount Rate (Easy to Calculate on the

Statement)-Transaction Fee -AVS (Address Verification Fee)-Monthly Service Charge, Statement Fee ($5 - $15)-Chargeback Fee ($15 - $25)-Minimum Processing ($15 - $25)-Change Fees ($10 - $25)-Annual Fees ($49 - $99)


You Can Influence:

– Billing Plan– Internal Procedures – Negotiable Rates – Your Provider or Processing Bank


Shameless Plug

’

We’re Big, We’re Bad


Merchant Services Provider

GATEWAYS

BANKS


Established 2002Registered ISO

Specialize Online MerchantsIntegrate with almost all Shopping Carts

Rates EQUAL to or better than “Big Banks Direct”Many Happy Stone Edge Customers

CEO Bill Dumont

2010 User Conference April 23 rd – 25 th, Philadelphia, PA Leveraging USPS® Technology To Save Shippers Money Wing Ng Business Development DYMO Endicia.

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