The importance of gaining control of your mailing fleet and strategies on how to optimize savings and efficiency in your organization

1. Why Mailing Fleet Asset Management is So
Important (Your Roadmap to 30-70% Savings)

2. Adam Lewenberg - Background and Experience
• President of Postal Advocate Inc.
– The only mail audit and recovery firm in the US and Canada
– Manage a portfolio of 58,000 pieces of mailing equipment for the largest
US companies.
– Speak and teach nationally on mail savings and industry trends.
• Industry Co Chair- Boston Postal Customer Council and Mail Systems
Management Association. CMDSS and MDC Certifications.
• Featured Writer for Mailing Systems Technology Magazine.
• Worked for one of the largest mailing vendors for over 17 years
– Director of national sales for presort, tabletop inserters, addressing
hardware/software and green offerings.
– Was one of the top 5 account managers nationally working with some of
the nations top accounts.
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3. Equipment Savings Process
February 10, 2016 3
Current Challenges
Optimized Mailing Fleet Asset Management
1. Gain visibility to your equipment and spends.
2. Validate questionable charges.
3. Negotiate enterprise pricing and terms.
4. Work with locations on equipment changes.
5. Eliminate fees and overcharges
6. Maintain postage balances and claim lost funds.
7. Continual review to ensure savings.
This process leads to 30-70% savings!

4. February 10, 2016 4
Challenges of Managing Fleet Mailing Assets
MAILINGSPEND–LOW
PRIORITY
LACKOF
UNDERSTSANDING
OFMAILCATEGORY
NOCENTRALIZED
OVERSIGHT
NOCONTROLOF
ROGUESPEND
DIFFICULTTO
ASSESSNEEDSOR
REQUIREMENTS
NOPUBLISHED
PRICINGFOR
COMPARISON
INCONSISTENT
PRICESFORSIMILAR
EQUIPMENT
POORVISIBILITY
CONFUSING
INVOICES
MULTIPLEPOSTAGE
ACCOUNTSTOFUND
ANDMAINTAIN
VENDORHASTHE
ADVANTAGEIN
NEGOTIATIONS
All this provides for HUGE SAVINGS OPPORTUNITIES!

5. Challenges With Mailing Equipment Purchasing
1. Huge price variances for similar models at different locations across
your fleet
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Example:
Model Pricing Variance
Model Quantity Low High Average
High/Low
Ratio Total Expense
Total if all
at Low Rate
Model A 9 $348 $701 $459 2.0 $4,133 $3,132
Model B 36 $345 $1,573 $801 4.6 $28,839 $12,420
Model C 26 $427 $2,063 $1,296 4.8 $33,703 $11,102
Model D 13 $1,427 $2,760 $2,019 1.9 $26,250 $18,551
Model E 26 $1,524 $4,467 $2,666 2.9 $69,325 $39,624
Model F 5 $3,251 $6,276 $5,352 1.9 $26,764 $16,255
Model G 5 $7,848 $9,931 $8,931 1.3 $44,655 $39,240
Total 120 $233,669 $140,324
Potential Savings $93,345

6. February 10, 2016 6
2. Expired or non existent Master Service Agreement
3. Lack of visibility to postage spends and usage levels.
Companies buying the wrong levels of equipment. In many cases
spending more on equipment than postage/usage.
Spend Ratios
Postage Range # of Sites
Equipment
Spend
Postage
Spend Spend Ratio
>$12,000 per year 2 $26,600 $63,500 0.42
$1200-12,000 per year 64 $189,054 $155,441 1.22
<$1,200 per year 76 $120,291 $41,890 2.87
Challenges With Mailing Equipment Purchasing
Main Cause – Reliance on mailing vendor to work with the locations to define
requirements combined with declining mail volumes.

7. February 10, 2016 7
Challenges With Mailing Equipment Purchasing
4. Vendor inventory reporting is infrequent, unavailable and
confusing
5. Lease portfolios with varying end dates often going into
evergreen statuses.
Lease Renewal Dates
Lease Expiration Year # of Sites Value
2013 or Before 19 $28,404
2014 9 $12,198
2015 34 $62,193
2016 26 $54,455
2017 19 $30,795
2018-20 22 $35,691
Total 129 $223,736
68% of your leases
are coming up
over the next
year.

8. Visibility and Oversight
Most important step
• Get reports from your vendors that list:
– Account Numbers (Install, Lease, Prepaid and Advance Postage)
– Lease Information – Rate, Term, End of Lease, Items covered.
– Meter rentals and maintenance agreements.
– Model, serial number and description of every item.
• Go to accounts payable and pull spend reports from the
main mail vendors and USPS.
• Enter your account numbers on the vendor websites.
• Monitor your inventory, invoices and postage balances
online (Recommended to do this monthly).
• Find all active locations with equipment.
• Set up a schedule for continual review.
February 10, 2016 8

9. How Postal Advocate can help
• We can work with all vendors data and can build this
visibility.
• We maintain this data in our enterpriseAdvocate System
and provide you access.
• We update this data monthly.
• We use this data to drive savings through your portfolio.
February 10, 2016 9

10. enterprise Advocate – Fleet Asset Management System -
Dashboard
February 10, 2016 10
Highlights
• Easy access to all mail spends.
• Visibility to fees and savings.
• All account numbers are stored in one place.
• Simple to drill down to an individual location or invoice.
Spend Ratio
Site equipment
cost compared to
the postage usage
*The data above is for demonstrative purposes only. Data does not represent true spends and costs.

11. enterprise Advocate– Multi Location System
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Highlights
• Complete visibility to all
mailing spends by
location.
• Can see detail for
multiple vendors.
• All account numbers are
stored in one simple to
access place.
The data above is for demonstrative purposes only. Data does not represent true spends and costs.

12. Validate Equipment Spends with Locations
We typically find 5-15% of a mailing fleet is not needed and can be returned.
• Bills often sent to accounts payable with limited review.
• Locations not surveyed about the equipment at the site.
• Little understanding of the equipment listed on bills and reports.
• Vendors have little incentive to validate suspect equipment because of lost
revenue.
• Equipment may be sitting in storage with charges accruing.
February 10, 2016 12
Criteria for Search:
• Meters not filled for over 6 months.
• Expired leases.
• Maintenance and meter rentals.
• Equipment over 5 years old.
• Folders, inserters, openers, shipping
and tracking systems.

13. Postal Advocate
Validation Process
February 10, 2016 13
1. Find suspect equipment and
charges.
2. Contact the location to validate
needs. (See below).
3. Implement changes and
cancellations.

14. Develop an Equipment Purchasing Strategy
How Postal Advocate Can Help
• Use national spend to negotiate better rates.
– We can pull this spend together for the US and Canada.
• Consider running a bid between the main mailing
vendors. (Pitney Bowes, Neopost, FP, Stamps.com)
– We have bid templates ready that we have used to negotiated for the largest mailing fleets.
• Negotiate Master Service Agreement and Terms.
– We can add and review terms to protect you for the future.
• Define the order process inside your organization.
– Purchase vs. lease vs. rental?
• We can guide you through your options.
– How are the equipment needs defined?
• Postal Advocate will work with your sites to show options and help implement changes.
– Where are approvals done?
– How can the policies be enforced?
• Postal Advocate will manage this process to ensure rules are being followed.
February 10, 2016 14

15. Choose the right system for each location
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Low Mid High
Typical Monthly Postage Use <$500 $500-5,000 >$5,000
Equipment Speed 15-45 Letters/Min 50-180 Letters/Min 70-310 Letters/Min
Feeding Hand Feed Hand or Auto Feed Auto Feed
Sealing Some Models Included Included
Meter Tapes For Oversized
Items
Strip Tape Sheets
(Fed like an envelope)
Strip Tape
Dispenser
Strip Tape or Roll
Tape Dispenser
Weighing (External Scale) 2-10LB 2-149LB 2-149LB
Weighing (Internal Scale) N/A Higher end models Optional
Postal Accounting Summary Info only
Summary or
Transaction Level
Summary or
Transaction Level
Additional Printing Capability
Simple Meter Ads
and Endorsements
Simple Meter Ads
and Endorsements
Optional -
Customized return
address and
Graphics Printing
Space Requirements - LxWxH < 29"x18"x13"
30"x15"x12"-
80"x25"x24"
58"x23"x17"-
104"x23"x33"
Typical Supply Costs - Ink and
Tape (Per Impression)
Ink - $.01-.06,
Tape $.05-.13
Ink - $.003-.03,
Tape $.04-.08
Ink - $.003-.005,
Tape $.01-.04
Typical Monthly Lease Price $25-125 $125-500 >$500
Mailing System Type
Additional Equipment Guides
can be found on our blog:
www.postaladvocate.com/blog
• Inserters
• Addressing Systems
• Envelope Printers
• Mail Automation Software
• Incoming Tracking Systems
• Shipping Systems
• PC Postage
• Letter Openers and Extractors
• Mail Accounting Systems

16. Renewal Process
• Who works with the locations to define the needs and provide options?
(Vendor, staff)
• What review process is set up to make sure it is the right solution?
• How do you protect against:
– Evergreen clauses
– Remaining balances
– Unauthorized lease extensions
– Unneeded equipment or wrongly sized models
– Locations not getting national account discounts
• Who follows up with each location to make sure new equipment is set
up and the old equipment was removed?
February 10, 2016 16

17. Postal Advocate
Equipment Renewal Process
February 10, 2016 17
Step 1: Customized Renewal Email
Implement renewals, terminations and new equipment needs.
Analyze current pricing and terms.
Set Standardized equipment rates and updated MSA’s.
Document all new equipment, savings and notes.
Work with locations to define needs and show options.
1
2
3
4
5
Postal Advocate Equipment Savings Stats

18. Renewal Email
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Detailed Location Information
Company Defined Purchasing
Process.
Compare Current Equipment
and Costs to new options.
Detailed description on all
equipment.
Web, PDF and Video links for
more information.

19. Step 2: Equipment Change Request Form
February 10, 2016 19

20. Step 3: Equipment Ordered Validation with Instructions
February 10, 2016 20

21. Step 4: Client Validates Completed Request
February 10, 2016 21

22. Eliminating Vendor Fees/Overcharges
• Pay bills on time.
• Look at each invoice and validate all
chargeable items.
• Cancel vendor equipment insurance.
• Terminate chargeable loyalty programs.
• Make sure postage refill and advance
charges are included or monitored.
February 10, 2016 22
Postage
Refill Fees - Rentals $0-20 each
Postage Advance Fees Included or up to 1% of the Advance
Postage Advance Late Fees 0-15% of the Advance
Postage Advance Finance Charges 15% or higher APR
Overlimit Credit Charge Varies by Vendor
Annual Fee Rewards Program Varies by Vendor
Lease
Late Fees Varies by Vendor and Lease Value
Insurance - Leases Only
Varies by Vendor and Lease Value -
Automatic enrollment unless proof
insurance is provided.
Mailing System Fees
We find companies paying
tens of thousands in fees
and overcharges that can
be recovered or eliminated
for the future.
Postal Advocate Avoidable Fees and
Overcharges Savings Stats
1536 Transactions - $1,023,911

23. Postage Funding – Prepay or Advance
• Prepay Advantages – No fees
• Advance Advantages – Convenience
• Don’t be fooled by earning interest on prepaid balances.
• Choose one postage payment method and stick with it - don’t flip
flop.
• Check balances in the meter and in the postage account.
• Think twice about ACH.
• Consolidate into master accounts whenever possible.
• Postal Advocate can help manage your postage accounts to ensure
optimal funding.
February 10, 2016 23

24. Lost Postage Recovery
• We have found over $2,200,000 in lost postage sitting in dormant postage
accounts. Plus over 21,000 transactions turned over to the states. This
happens because:
– Offices close, merge or just turn in their meters.
– The money is expensed once sent in for postage.
– The advance account is used when funds sit idle in the prepaid.
• Steps to find money.
– Find account numbers of your current and past meters.
– Enter these account numbers online on the vendors website to see if
any data is available.
– Contact your meter vendor to validate funds available.
– Check the unclaimed funds databases to see if funds were turned in.
Postal Advocate can research these funds and help you get
them returned quickly.
February 10, 2016 24

25. Cash in Loyalty Points
• Pitney Bowes has a rewards program that gives you points for
purchasing postage, supplies or other services that can be linked to
the Purchase Power account.
• These points oftentimes sit idle or are not understood.
• Points can be turned in for:
– Purchase power credits that can be used for postage and supplies.
– Personal gifts
Postal Advocate can help cash in these points for you before they
expire!
February 10, 2016 25

26. Supplies Strategies
• Buy in bulk – Most vendors will give you published discounts if you buy multiple
ink cartridges and meter tapes.
• Check third party non OEM (Low Volume) – There are many
companies out there offering non mailing vendor based supplies that may be a
consideration. The major office supply stores are also carry this ink for low end
meters. Find out from your manufacturer if there is any binding agreement where you
are required to use their supplies.
• Ask for discounts – If you have multiple sites or are buying large amounts of
supplies, ask if you are eligible for any additional discounts. It never hurts to ask.
February 10, 2016 26
Low Mid High
Typical Supply Costs - Ink and
Tape (Per Impression)
Ink - $.01-.06,
Tape $.05-.13
Ink - $.003-.03,
Tape $.04-.08
Ink - $.003-.005,
Tape $.01-.04
Mailing System Type

27. Helping multi-location
organizations streamline
their mailing costs
58,000 pieces of
equipment, managed
by Postal Advocate
Recovered over
$2,200,000
in lost postage, vendor
overcharges and fees
ENTERPRISE-WIDEMAILAUDITANDRECOVERY
OVER $20,000,000 IN CLIENT SAVINGS
$559K
57%
Average Client
Savings
Average Equipment
Savings
HOW WE DO IT
• 200 + years of industry experience
• Comprehensive web-based tool
providing visibility of all mail
and equipment spend
• Time Savings - Assistance
in fleet management
visit www.postaladvocate.com or call (888)977-MAIL(6245)

28. Sign Limited Agency
Agreement/Kick-Off Call.
Provide copies of vendor
invoices, AP export,
location list,
equipment inventory list.
Present savings opportunities
and get client approval.
Postal Advocate provides
ongoing support,
manages renewals, billing
and vendor compliance.
Provide enterprise visibility of
all spend, costs and
documented savings
through enterpriseAdvocate.
Provide client log-in.
1 2
3
4 5 6
HOW IT
WORKS
Work with current vendor to build population
report, contract terms/start/end dates,
postage volumes, costs.
Analyze spend, check for contract
compliance, billing errors, vendor
fees/overcharges, lost postage.
Identify savings opportunities.
Submit vendor credit requests,
lost postage forms and
eliminate avoidable fees.
Negotiate pricing. Create catalog.
Work with sites -
asset validation, rightsize, termination…
Full implementation of savings.
visit www.postaladvocate.com or call (888)977-MAIL(6245)
Conduct Analysis
NO COST – AUDIT PHASE CONTRACTED CLIENT

29. Free No Obligation Mailing Fleet Analysis
• Completed in 2-3 weeks
• Outlines, spend and specific savings opportunities
• Minimal customer involvement
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Savings Summary Locations Meter Rentals
Maintenance
Agreements
On Call
Maintenance Lease Total Postage Spend Ratio
0.00
Item Current 2015 2016 2017 Savings
Combined
Savings
Equipment Costs
Avoidable Fees
(Late Fees, Finance Charges, Equip Insurance, Loyalty Plans)
Contract Violations
(Supply, maintenance, meter discounts, overcharges)
Lost Postage Funds (Meter Accounts)
Lost USPS Permit Funds
Total $0 $0 $0 $0 $0 $0

30. Equipment Savings Process
February 10, 2016 30
Summary
Optimized Mailing Fleet Asset Management
1. Gain visibility to your equipment and spends.
2. Validate questionable charges.
3. Negotiate enterprise pricing and terms.
4. Work with locations on equipment changes.
5. Eliminate fees and overcharges
6. Maintain postage balances and claim lost funds.
7. Continual review to ensure savings.
This process leads to 30-70% savings!

31. Contact info: (20pt)
February 10, 2016 31
Questions?
Contact: Adam Lewenberg - President
888-977-MAIL X 501
adam.lewenberg@postaladvocate.com