...Classified Nuts & Bolts Solutions...

• Home
• About Us
• Contact Us
• References

Proposal For:



Community Newspaper or Call Center
Under 100,000 Circulation


Classified Department Analysis
Management Plan
And Sales Training









By:

Richard Clark
Classified Development

2007


Contents



Section Proposal Topic

Executive Summary

Current Situation

Performance Objectives

The Approach - Achieving the Major Purpose and Specific Performance Objectives

Deliverables Overview

Results Enhancers

Pricing

I. EXECUTIVE SUMMARY
This proposal is designed to meet the requirements of single community newspapers, and classified call centers serving several community newspapers, to develop a specific nuts-and-bolts plan for Classified Department revenue improvement and franchise growth for both the print and online editions. This plan will be structured to provide a major boost to the classified ad-visors' sales efforts, both in terms of the pricing and selection of the products they offer, and, more importantly, to improve their sales skills so they can confidently guide each advertiser into buying the type of ad that has the best chance of getting good results.
The overall objectives of the program are:
Measurably improve the Ad-visors' knowledge and skills in up-selling voluntary advertisers into the best practical ad solution, as well as enhance their ability to grow the classified franchise through effective outbound calling and account relationship management.
Implement low-time/low-paperwork methods for management to encourage, measure and reward the ad-visors toward the goal of 20% to 30% revenue improvement, while simultaneously strengthening the overall classified franchise.
Ensure that the classified products, packages and enhancements offered are properly designed and priced to enhance, rather than hinder the above efforts.
Provide this plan and training in a cost-effective manner.
These are the major overall objectives. A specific list of Performance Objectives will be met as outlined in the following paragraphs.
II. CURRENT SITUATION
There are four critically important factors affecting the outcome of the proposed Classified Development program. First, this project is probably being for outsourcing because one or more trusted fellow-publishers reported the gains their publications have enjoyed as a result of following the training and plan Classified Development created for their companies. The confidence you may have in the ability of this analysis and training program to justify the investment is certainly enhanced by such recommendations.
Second, the list of published Performance Objectives is extensive. Therefore, a significant development program is required to make sure that each of the fourteen performance objectives is met.
Third, the amount of effort necessary to create the desired deliverables is not trivial. Fortunately, Richard Clark has established a significant volume of proven methods, best practices, and application techniques for putting together these programs during his 20 years of direct newspaper classified experience and ten years of consulting experience with well over 200 newspapers. These proven techniques will be tweaked and customized for your newspaper or call center based on data from a series of specific analytical studies that are done onsite. This ensures that your newspapers get the right program for your markets, rather than a one-size-fits-all approach.
Finally, time is relatively short to position your newspapers to effectively compete in the new hyper-competitive classified marketplace. Those newspapers that make plans to protect their existing print franchises and to grow their online classified operations will be the ones that continue to enjoy strong profits over the next few decades. Many of those that haven't learned to strengthen and reshape their classifieds offerings to meet changing demand are already starting to see migration of ads and readers away from their products. In my opinion, specific knowledge of your newspapers' classified products and market is a critically important ingredient in designing the right plan for success for your classified operations. This is why the analysis is done onsite, right out among the classified ad-visors. This first-hand concentrated effort will enable me to get a feel for your people and the "flow" of the department, and then put your plan together quickly. We're talking about a week (Tuesday through Monday), not six months.
III. PERFORMANCE OBJECTIVES
The list of performance objectives for the Classified Development program can be grouped into functional areas to enhance the organization and consistency of the training. Four major areas are identified for Classified Development program focus:
Analysis and design of both existing and new products.
Management training.
Up-selling voluntary advertisers into more effective ads.
Outbound efforts to grow the franchise.
A first cut at grouping the Performance Objectives into these major topic areas is as follows:
Analysis and design of existing and new classified products
1. Ensure that classified line ads are priced correctly based on local publishing costs and order distribution pattern analysis. This pricing includes proper tiers for different types of advertisers. The new rates are double-scaled to provide appropriate discounts to encourage the purchase of more lines as well as more days.
2. Identify and plug "revenue leaks" in place in the current operations.
3. Suggest, and evaluate the profitability of, potential enhancement offers for line ads, and to predict the revenue to be realized by using data from the ad order distribution study.
4. Suggest and evaluate the profitability of entirely new classified pages and to predict the revenue to be realized by using data from the detailed ad order distribution study.
5. Examine the physical layout and design of the print classified section, and suggest improvements for both readability and profitability.
6. Suggest and train staff on sales of newly available online classified products, both as upsells and as stand-alone products. (Example: Easy-to-sell-and-execute ideas for Google Map "mash-ups".)
7. Design profitable "package deals" for advertisers, and then train your ad-visors to sell them effectively.
Management Training
8. Provide a sales management system that both rewards good selling behavior and provides identification of poor performance, without much time or paperwork. This system includes an ongoing re-training program done in only a few minutes a week by your classified supervisor. This ongoing measurement, and targeted retraining, works wonders at sustaining growth over many years.
9. Provide a simple system that ensures that all renewal callbacks are done every day, and done correctly, without a lot of time or paperwork invested.
Up-selling voluntary advertisers into more effective ads
10. Provide proven scripted sales presentation methods for both new and existing products, and train Ad-visors on how to use and modify them in real-life situations.
11. Maximize the cross-selling opportunities with other newspaper and online properties whenever practical, not only with sister papers, but into any classified ad networks in which your papers participate.
Outbound efforts to grow the franchise
12. Identify, and provide plans/training to exploit, sources of new classified advertisers from print, online and "live" sources.
13. Build up existing classified directories and establish clever new directories.
14. Provide account relationship management method that changes prospecting from "85% prep time, with only 15% live contact" into "15% prep time, with 85% live contact time."
IV. THE APPROACH ACHIEVING THE MAJOR PURPOSES AND SPECIFIC PERFORMANCE OBJECTIVES:
A. Careful study ensures that the suggestions are right for your market
The trick is to know just what to look for, how to find it, and then what to suggest based on those findings. This is roughly 70% science and 30% art. The data for the cost and rate analysis is gathered during each property's on-site visit and typically takes up most of the first three days. Some of the areas examined include:
Determination of the classified department's fair share of overall newspaper expenses;
The current profitability of each segment of the classified operation;
The positive and negative aspects of current operating procedures;
Identification of existing "revenue leaks" and how to plug or eliminate them;
Identification of existing "franchise leaks" and how to plug and eliminate those as well;
The ad-order distribution pattern produced by your current policies and rates;
The percentage and cost of unpaid space contained within your paid classified lineage;
Opportunities for gains in market share from competitive classified products;
Opportunities for gains from website and other new media operations;
A review of current "specials" (with keep change or drop suggestions);
A review of current billing and collections procedures;
Plus other new objectives that are suggested by the results of the above studies.
B. Structuring the program's flow for maximum impact
The flow of the program has a high impact on how well the management and ad-visor participants learn and their perception and evaluation of the program. It has been Classified Development's experience that the classified training program also provides a great opportunity for the newspaper to re-sell its positive aspects to its employees. This is especially important for sales departments and that's why the program's flow will be structured to regenerate excitement in the participants about your publications.
Elements to be incorporated into the program's flow are:
Top management participation top managers are encouraged to attend the Saturday training session to demonstrate that classifieds are important, and to demonstrate support for the new sales methodology.
The training will be structured so that each subject builds upon the previous topic covered. The overall flow suggested is: The power of the newspaper and the value of its trust-relationship with its readers; > The importance of classifieds to both the overall readership and revenue stream of the newspaper; > What readers and advertisers expect from the classifieds; > How to get advertisers to include the elements in their ad that will pay off with the desired results; and > How to get more advertisers to use the classifieds.
The all-day (8:00 am to 4:00 pm with the newspaper providing lunch onsite) ad-visor training session is held on a Saturday so everyone can attend. This is a lively session that goes by faster than most could imagine. In one day we will turn your ad-takers into ad-visors, and your ad-visors into ad-experts. Your readers will benefit from information that is broader and clearer. Your advertisers will benefit from getting first shot at more qualified buyers. Your newspaper will benefit from the enhanced revenue stream. Your Ad-visors will benefit from better compensation and the feeling of a job well done.
During the analysis segment of the service, Classified Development will frequently show samples of other papers that are utilizing the elements of the new program that are being discussed for your papers.
Unlimited e-mail and telephone support are included for a full year. Classified Development can almost always answer any classified-related question within 24 hours.
IV. DELIVERABLES OVERVIEW
In addition to the highly motivational onsite sales training just described, Classified Development provides a detailed written report that is usually 70 to 90 pages long. The full basis for every recommendation will be included in this report that is presented on Monday morning at the end of the initial visit. This report is provided in both print and electronic formats, enabling you to copy and paste selections from it for any individual you feel would benefit from the written explanation.
The management report will include a list of priorities and timelines for implementation. You will always know what needs to be done next, and why. This keeps good ideas from languishing in a dusty report on an office shelf someplace. The report is just the written document; the primary deliverable is a whole new sales-oriented attitude in your classified department that will provide many thousands of dollars year after year.
Each participant will get a copy of the Sales Training Manual to use during the Saturday training session and as a handy reference thereafter.
The elements of your program will all be designed to work together and enhance each other. You will be able to show gains just by cherry-picking items here and there, but the greatest successes are from the papers that implement the entire program fully and quickly.
VI. RESULTS ENHANCERS
Your managers will be provided with an electronic "goodie bag" of tools and examples for managing the Classified Development program at your paper. These are saved in combinations of Word, Excel, Acrobat, and photo formats, so they should be readily accessible for most computers. The files include examples and tools for: managing ad-visors, up-selling inbound callers, renewal callbacks, outbound prospecting, house ads, budgeting tools, improvements for legals, promotion planning guidelines, advertising customers' branding strategies, ongoing training tools, and more. This will become your managers' "go to" toolbox for new ideas as the program progresses.
The service also includes a two-day onsite follow-up/re-training/advanced training visit. The purpose of this visit is to provide the best new ides gleaned from Classified Development's work during the past year, provide additional training, and to measure your progress with the program. Any tweaks in the program that are suggested by this measurement will be suggested at that time. There is no additional fee for this follow-up, only the basic frugal travel expense.
VII. PRICE PROPOSAL
Classified Development proposes its services on a project fee basis. This provides your newspaper with a firm, fixed price for the deliverables proposed. The price for all community newspapers (under 100,000 circulation) for all of the items proposed in the proceeding pages is $15,500 plus basic frugal travel expenses.
Based on the results of other Classified Development clients, this will be one of the fastest-return investments you can make for your newspaper.
The payment schedule proposed is:
Up-front Commitment Fee: $2,500 to be paid upon setting the date for the initial onsite visit. This fee is non-refundable.
Balance of Fee: $13,000 will be billed at the end of the initial onsite visit and is due within 30 days.
Basic Frugal Travel Expense for Onsite Visits: Will be billed after the end of each visit and will be due immediately upon receipt of invoice.
Late Fees: A late fee of $50 per 30-day period or applicable partial period will apply if full payment of any balance due is not made within 30 days.
Other Payment Options: If agreed at the time of the upfront commitment fee, newspapers may break the $13,000 final fee into a series of three consecutive monthly payments with no interest or late fees. There will be only one invoice for the full amount of the service. Basic frugal travel expenses are due immediately upon receipt of invoice.

Accepted for ______________________________________________ Newspaper Name

By: _________________________ Title ________________________ Date: _____________


Accepted for Classified Development, and receipt of Up-front Commitment Fee acknowledged

By: _________________________ Title ____President_____________ Date: _____________
You are encouraged to call any or all of the Publishers, Advertising Managers or General Managers on the list that follows. All are either present or recent clients who are familiar with Classified Development's approach, and the type of results obtained.

Mr. Ray Stafford Publisher 915-546-6100
EL PASO TIMES (Corp. VP, Texas New Mexico Newspapers, Media News)
300 North Campbell, El Paso, TX 79901

Mr. Dave Lord President 206-284-4424
PIONEER NEWSPAPERS (Chain of small dailies and weeklies)
221 First Avenue W., Suite 405, Seattle, WA 98119

Mr. Jon Segal, President Newspaper Division 714-553-9292
FREEDOM COMMUNICATIONS, INC. (24 Metro and Community Dailies)
17666 Fitch, Irvine, CA 92623

Mr. Jim Thompson, President 208-664-8176
HAGADONE NEWSPAPERS (Chain of small dailies and weeklies)
201 North Second Street, Coeur d'Alene, ID 83816

Mr. Doug Hiemstra, Chief Operating Officer 402-537-4864
MIDLANDS NEWSPAPERS (Omana World Herald subsidiary chain of small dailies)
138 N. Washington Street, Papillion, NE 68046

Mr. Ron Ensley Publisher 507-451-2840
OWATONNA PEOPLE'S PRESS / FARIBAULT DAILY NEWS (2 Dailies 7,000 Each)
135 West Pearl Street, Owatonna, MN 55060

Mr. Vernon Debolt, Senior Publisher 252-638-8101
FREEDOM EASTERN NORTH CAROLINA GROUP (3 Dailies 15,000 to 22,000 Each)
PO Box 1149, New Bern, NC 28563

Mr. Rick Thomason, Publisher 850-837-2828
THE DESTIN LOG (7,000 Twice-weekly)
1225 Airport Road, Destin, FL 32540

Ms Christine Holaday Schriock, Swift Corporate Classified Director 970-384-5319
Colorado Mountain News Media (Call Center 4 Free Dailies and several Weeklies)
2014 Grand Avenue, Glenwood Springs, CO 81602

Mr. Rufus Woods, Publisher 509-633-5161
THE WENATCHEE WORLD (25,000 Daily)
PO Box 1511, Wenatchee, WA 98807

Mr. Jim Shine, General Manager 419-223-1010
THE LIMA NEWS (43,000 Daily)
3515 Elida Road, Lima, OH 45802

Mr. Doug Caldwell, Publisher 231-347-2544
PETOSKEY NEWS-REVIEW (11,000 Daily)
PO Box 528, Petoskey, MI 49770

Mr. Doug Phares, Publisher 419-625-5500
SANDUSKY REGISTER (23,000 Daily)
PO Box CN 5071, Sandusky, OH 44870

Many more references available on request.

Consulting Service

Classified Development's clients routinely enjoy 20% to 30% revenue improvement, though a few find revenues more than double. Proposal

Cost and Rate Analysis

Are your rates are too high, or too low? Do they encourage more lines and more days, or the minimum? Learn more about Classified Development's Rate Structuring Service.

more...

Sales Training

Turn your ad-takers into ad-visors. Turn your ad-visors into ad-experts. Watch your sales take off with Classified Development's Sales Training Service.

more...

Seminars and Events

Richard Clark's fast-paced and targeted sessions are always a hit at association conferences and company meetings. Attendees often comment that they get far more than enough from Clark's class to pay for their whole trip.

more...