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Old 4th September 2008, 08:38 AM   #1
BeInnovative
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Join Date: Jul 2008
Location: Ottawa, Ontario, Canada
Posts: 32
Default How Are People Making Money Through Direct Mail?

Maybe a simple question, but I don't see how it adds up when you consider the costs versus the likely sales you get. Either that, or my costs are way off, or this is an inappropriate approach for my business. Hopefully someone can help me find out where the problem is.

We did a direct mailer in April for our educational board game. We rented the list from the American Auidance Councillor assoc. We sent out 2000 postcards. Had them printed and then had Canada Post (equiv of USPS) mail them.

name/address rental: 2000 for $300.
postage cost (may have included adding the stamps): $1000
printing: $400 (not positive but in this range)
Approx total cost: $1700
Our response rate was only about 1%, in that this generated: generated about 20 single game sales
Revenue from these sales: $600
Profits from these saesl: $260

So as you can see, just looking at numbers, we lost almost $1500 on this. We're in an awareness building phase, so I still am glad we did it, but when considering future marketing/advertising opportunities geared at generating sales, based on these numbers, I would pass on this.

But something tells me I'm just doing something wrong. Any thoughts would be appreciated.

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Elsbeth Vaino, CSCS, NASM-CPT, FMS Certified
www.entrepreneurshiphabit.com
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