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Old 5th September 2008, 08:22 AM   #3
Slippery Slope
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Join Date: Sep 2008
Posts: 22
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Quote:
Originally Posted by BeInnovative View Post
Maybe a simple question, but I don't see how it adds up when you consider the costs versus the likely sales you get. Hopefully someone can help me find out where the problem is.

But something tells me I'm just doing something wrong. Any thoughts would be appreciated.
You could have avoided the loss if you would have crunched some realistic numbers before attempting the project.

I checked your website and see that the game sells for $35.00.

In my head I always use 1% as a decent response rate. So, for every 1,000 postcards you send out you should end up with 10 orders.

10 orders X $35.00 = $350.00

I ballpark the printing, the mailing list, lettershop addressing and first class postage at $500.00 per 1000.

So, right away you see you're in the hole.

BUT, direct mail isn't about the front end, it's all about the back end. What other (higher priced) product are you going to sell them next? The (big) profit is (always) on the back end.

NO back end? (Shame on you.) Then your product should be sold at a price where you can make a substantial profit on the front end. With a board game that would be pretty tough to do.

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