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's 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% = 1,000 orders)
Your product sells 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.
Also See: Direct Mail: Why It Works And How To Use It
Also See: Direct Mail Formulas for Success
Return to the "How to Market" Directory
All Articles and Tips are on the SITE MAP PAGE - Click HERE
Top : Home
Listen in on Tom's weekly radio show "Open For Business" on AM 1450 KMMS Radio, Bozeman.
Have a business question for Tom? Click here to get Tom's advice for free.
Stay up to date on business issues. Join Tom's Blog.
This article may be reproduced for your non-profit group or organization provided it is not altered in any way and the following is attached:
Used With Permission
© Eagle Marketing PO Box 271, Bozeman, MT 59771-0271
http://www.smalltownmarketing.com - (406) 585-0219
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 406-585-0219 or PO Box 271, Bozeman, MT 59771-0271
Would you like Tom Egelhoff to speak at your business function or convention?
Click here for information, topics and pricing.
Top : Home