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How To Know If You Can Sell
Your Product By Direct Mail
by Tom Egelhoff
I talk a lot about direct mail on this web site because it is one of the most successful and inexpensive ways to market your product...if it's done correctly. Those last four words are the key.
Most industry experts say that a one to two percent response is an indication of a successful campaign. So, when you decide that you want to sell your product by direct mail how do you know how much to mail? And, can you make any money?
You'll want to start with a small test mailing. I usually recommend 5,000. It is small enough that it won't bankrupt you and large enough to give you a sizable number if you get a one to two percent response. (1% = 50, 2% = 100 responses). This will also give you a guide as to costs of the mailing for the response that is returned.
For example, let's say you mail 50,000 offers. You get a 1% or 2% response. (1% = 500, 2% = 1000 orders) Your product sell for $14.95 (You gross $7,475.00 or $14,940.00) What happens when you deduct the expenses. Printing, postage, cost of list etc. If each mailer cost just .50¢ your expenses are: $25,000.00. You just lost $11,000.00.
To make this successful one of three things must happen. 1.) You must sell the product for around $30.00, 2.) You must cut the cost of the mailer, or 3.) You must increase the response from 1% to 2% to at least 2% to 4%.
Numbers one and two are the most likely but number three can be the most effective. The better your mailing list the higher your response rate will be. Provided of course, that you have a good product and a good offer.
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© Eagle Marketing PO Box 271, Bozeman, MT 59771-0271
http://www.smalltownmarketing.com - (406) 585-0219 - Toll Free (888) 550-6100
Email: tommail@smalltownmarketing.com.
Based in Bozeman, MT, Tom Egelhoff is the author of How To Market, Advertise & Promote Your Business Or Service In A Small Town, and The Small Town Advertising Handbook: How To Say More And Spend Less. He is also a seminar and workshop presenter and trainer. He may be reached at 888-550-6100 or PO Box 271, Bozeman, MT 59771-0271
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