1. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA Leveraging USPS® Technology To Save Shippers Money Wing Ng Business Development DYMO Endicia www.endicia.com

2. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA 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

3. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA 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

4. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA 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

5. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA USPS® Maintains Advantages 1lb 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

6. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA USPS® Maintains Advantages

7. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA Endicia Roots Microsoft Direct Mail Manager Parent Company Founded 1976 Hardware IBIP Win 100 Award Envelope Manager Dial-A-Zip DAZzleSoftware IBIP endicia 1989 1991 1992 1994 1997 1998 2000

8. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA A Technology for Growth $1.3 billion and 25% growth in 2009 even with bad economy Endicia All Other Providers Billions in Postage Printed

9. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA Questions and Answers More information: 800-576-3279 x 140 sales@endicia.com www.endicia.com

10. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA Captain Dave’s Secrets for Saving Some Samoleans By David Reeder Captain Dave, Inc.

11. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA 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%

12. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA 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

13. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA 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

14. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA Step 2: Ask for Discounts Nothing ventured, nothing gained You won’t get it if you don’t ask

15. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA 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

16. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA Play Suppliers Against Each Other Negotiate rates with one Take those rates to the other Go back to the first

17. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA Warehouse Space Landlords are hurting Commercial vacancies are high This is an opportunity for you

18. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA Employees Money is not the only motivator –Flex time/unusual hours –Ability to work form home –Vacation time/unpaid time off –Business travel

19. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA Services Shipping Credit card processing fees Banking Insurance Legal advice, accounting services Janitorial services Telephone

20. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA

21. Reducing the cost of Accepting Payments Largest Costs -Labor -Rent -Advertising -Bank Fees (Credit Card Processing)

22. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA Confusing Complicated Unreadable Statements Rate Changes Bank Reserves Held Deposits

23. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA Cost You Can’t Control Hard Costs from Visa – MasterCard (Interchange) Type of Card being Presented

24. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA You Can Influence: –Billing Plan –Internal Procedures –Negotiable Rates –Your Provider or Processing Bank

25. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA BILLING PLANS 1) Bill Back 2) ”Bucket or Tiered” Billing -Qualified Rate -Mid Qualified Rate -Non Qualified Rate 3) Interchange Plus Billing or Pass Thru Pricing

26. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA “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.”

27. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA Interchange Rate Criteria 1)Transaction Type - Retail (Swiped) -Internet (Card Not Present) 2)Merchant Category Code -Charitable Organizations -Supermarkets -All other Retail 3)Type of Card Presented -Standard -Debit or Check Card -Rewards -Corporate

28. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA TRUE COST… Really, Really TYPEINTERCHAN GE DUES & ASSESSME NTS EFFECTIVE RATE Visa Debit1.60%.11%1.71% Visa Standard 1.80%.11%1.91% MC Standard1.89%.0950%1.98% MC World 12.50%.0950%2.59% Visa Rewards1.95%.11%2.06% Over 200 Card Types!

29. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA Visa Consumer Credit Master Card Debit Visa Rewards Master Card World Visa Corporate Master Card Foreign “BUCKET” BILLING

30. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA 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!

31. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA You Can Influence: –Billing Plan –Internal Procedures –Negotiable Rates –Your Provider or Processing Bank

32. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA Internal Procedures POTENTIAL DOWNGRADES -AVS Missing -Transaction ID Missing -3 Day Settlement -Authorization & Settlement Amounts do not match -10 Day Non Settlement

33. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA You Can Influence: –Billing Plan –Internal Procedures –Negotiable Rates –Your Provider or Processing Bank

34. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA 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$.0195 Master Card Access Fee$.0185 Discover 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

35. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA 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)

36. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA You Can Influence: –Billing Plan –Internal Procedures –Negotiable Rates –Your Provider or Processing Bank

37. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA Shameless Plug We’re Awesome We’re Big, We’re Bad

38. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA Merchant Services Provider GATEWAYSBANKS

39. 2010 User Conference April 23 rd – 25 th, Philadelphia, PA Established 2002 Registered ISO Specialize Online Merchants Integrate with almost all Shopping Carts Rates EQUAL to or better than “Big Banks Direct” Many Happy Stone Edge Customers CEO Bill Dumont