Revenue Expenses Revenue Expenses NEACE Fall Conference November 5, 2009 Northampton, MA Kelvin Parker Portsmouth Herald Portsmouth Herald

Thoughts for Increasing Revenue and Decreasing Expenses  Set aside time to strategize  Think outside the box  Don’t take no for an answer  Research what your peers are doing  How can you capitalize on what other departments are doing?  Don’t be afraid to change

Tough times call for tough decisions Price increases for home delivery and/or Single copy Price increases for home delivery and/or Single copy Premium pricing for day of week or special delivery. Premium pricing for day of week or special delivery. Strategic pricing by household Strategic pricing by household Strategic marketing to maximize Advertising potential Strategic marketing to maximize Advertising potential

Tough times call for tough decisions Cut dealer profit per copy sold. Cut dealer profit per copy sold. Cut contractor profits per piece or combine routes at lesser compensation. Cut contractor profits per piece or combine routes at lesser compensation. Charge distribution fees to dealer accounts. Charge distribution fees to dealer accounts. Contract for distribution of additional products (home delivery, single copy and free publications). Contract for distribution of additional products (home delivery, single copy and free publications).

 Consolidate staff – wear multiple hats – fewer managers.  Lay off nonessential personnel.  Don’t fill open positions.  Outsource duties - customer service, distribution, accounting, printing and marketing.  Centralize these same duties for multiple sites. Tough times call for tough decisions

 Combine distribution and collection responsibilities.  Combine distribution types – home delivery AND Single copy.  Reduce redelivery footprint.  Reduce Vending locations.  Reduce free, NIE and employee copies, thereby reducing newsprint costs.

Tough times call for tough decisions  Evaluate revenue per copy versus expense per copy. Eliminate costly distribution – low selling dealer outlets, costly home delivery.  Eliminate depots. Force contractors to pick up papers centrally.  Combine departments and find efficiencies.

Tough times call for tough decisions  Eliminate the TV guide or charge for delivery.  Reduce the size of your newspaper to 22 inches.  Eliminate the printing & distribution of unprofitable tabs and sections.  Reduce the number of publishing days.  Eliminate printing on holidays.

Tough times call for tough decisions  Reduce the number of pages in each day’s publication.  Revise the quantity of Sunday magazines as volumes drop.  Offer advice as to how other departments can cut costs.  Review Periodical and Standard Mail rates.

Parting advice Review your costs and procedures every 3 months. Opportunities and circumstances change fast today. You need to react fast to keep costs down and profits up for your department and your organization.

Good Luck! Steve Milone Steve Milone Mike Theriault Mike Theriault Kelvin Parker Kelvin Parker