| Beginners lose money in direct mail and mail | | | | from the same customer. Many operators have |
| order because they are given the impression | | | | catalogs that they send to their customers to |
| that they need little knowledge and money to | | | | gain repeat orders. That is what mail order |
| succeed. The truth is that each mail order | | | | is all about. You want to get customers, make |
| and direct mail is just that, a business. It | | | | them loyal to you, and sell, sell, sell.Don't |
| requires knowledge and skills to operate and | | | | forget that most products have a life cycle. |
| succeed.Our purpose is to describe the above | | | | It may not be too long before you can't give |
| businesses, but more importantly to give you | | | | a product away. You must find or develop new |
| sources to help you find the information you | | | | products. See the references to see how to do |
| need to succeed.MAIL ORDERMAIL ORDER is the | | | | this. Let me tell you a secret: It is a great |
| process of selecting a product, advertising | | | | advantage to operate mail order out of an |
| it in print magazines or newspapers, (and | | | | existing business that has walk-in customers. |
| also consider radio and television) and | | | | That way, you are always in contact with your |
| fulfilling the orders that come in to your | | | | customers one-on-one and you can assess their |
| mail box.Many have made millions in mail | | | | needs and wants. Your products tested locally |
| order. Others have and continue to earn a | | | | will also sell by mail order.The Seller is |
| good living. Over the years, they have | | | | Shutdown for False AdvertisingDon't think |
| learned the business by testing their ads in | | | | that federal, state, and local officials are |
| local or regional publications before going | | | | not watching your business practices. They |
| national or purchasing display ads.This is | | | | get complaint every day. You must deliver |
| what happens to many: THEY PICK A PRODUCT | | | | according to the rules (see the references). |
| THAT NOBODY WANTS TO PURCHASE BY MAILPerhaps | | | | The product must be as advertised. Deceptive |
| its easier for the customer to buy the same | | | | advertising is not allowed. Years a go, a |
| product locally. It's an original product | | | | mail order operator advertised a |
| never sold by mail order but nobody wants to | | | | professionally engraved portrate of George |
| purchase it by mail. The problem here is that | | | | Washington. He send a postage stamp with |
| the seller never studied the market enough to | | | | George Washington engraved portrate as the |
| see if such a product would sell by mail | | | | product! Don't try that in this day of age. |
| order. There may be too much competition | | | | You could go to jail!REFERENCES FOR MAIL |
| locally, in the media being used, or on the | | | | ORDERWhen ever I want to purchase a book, I |
| Internet.They Price the Product | | | | try to buy it at a discount. To do this, I go |
| IncorrectlyExperienced mail order operators | | | | to one of the online book sellers and try to |
| test classified ads by changing the price of | | | | find a used one in good condition. Just put |
| the product. For example, a booklet with a | | | | Mail Order in the search box and read the |
| cost of $1.00 to print might be offered at | | | | discriptions carefully. Also, search the |
| $2.95, $3.94, and $5.95. when the orders come | | | | Internet using the same technique. Contact |
| in, the seller counts the number received at | | | | the United States Printing Office for more |
| each price offered, records the cost of the | | | | information. Also, contact your local and |
| ad, records the amount of money that came in, | | | | state governments and your chamber of |
| subtracts the printing cost and the ad cost | | | | commerce.I don't like to push my sites in the |
| and determines the profit. The seller then | | | | content of a newsletter but I do have |
| knows the best price to sell the | | | | materials at (IWS Sources) and (ClickBank |
| product.Let's say that the classified ad cost | | | | sources). Here are two pretty good books:THE |
| $150.00.He sells 300 books at $2.98. | | | | COMPLETE DIRECT MARKETING SOURCEBOOK By John |
| | | | Kremer ISBN 0471553875. If you don't buy any |
| At the 2.95 price, the seller sells 300 | | | | other book,especially if you are in the |
| booklets. The cost of the booklets is | | | | mail-order business, buy this one! However, |
| $300.00. Adding the ad cost, he has $450.00 | | | | it does not replace the following books. Get |
| cost. Let's say it cost him $0.60 to ship | | | | at least one of these.HOW TO START AND |
| each book because the booklet weighs 2 oz. So | | | | OPERATE A MAIL-ORDER BUSINESS By Julian L. |
| 300 booklets would take $180.00 to mail. Now | | | | Simon ISBN 0070575312BUILDING A MAIL-ORDER |
| our cost is at $630.00. The total received | | | | BUSINESS By William A. Cohen, Ph.D. ISBN |
| from the buyers is $885.00, leaving a profit | | | | 0471109460DIRECT MAILDIRECT MAIL is when you |
| of $255.00.He sells 280.00 at $3.95. | | | | send an offer directly to the customer in the |
| | | | mail. The offering includes a letter, a sales |
| That brings in $1106.00. The cost of books | | | | brochure, an order form, and a self-addressed |
| and the ad is $430.00. It cost him $168.00 to | | | | envelope. When the customer orders, you send |
| ship the books. The profit is $562.00He sells | | | | the product (or deliver the service) along |
| 60 books at $4.95. | | | | with promotion materials on other products or |
| | | | services you offer.As with Mail-Order, the |
| This brings in $297.00. It cost him $36.00 | | | | object is to find a customer and then to keep |
| to mail them and he has the book cost plus | | | | the customer for as long as possible so that |
| the ad cost of $210. His profit is $51.00.So | | | | he or she will purchase other items that you |
| what price does he sell his books at? | | | | want to sell. A catalog is often used, as in |
| | | | mail order.WHAT HAPPENS TO MANY IN DIRECT |
| The profit at the $2.95 price was $255.00The | | | | MAILThe Offer is IllegalJust because some |
| profit at the $3.95 price was $562.00The | | | | block told you that an offer was legal it may |
| profit at the $4.95 price was $51.00The | | | | not be legal. All of a sudden you are in |
| seller places his national ads at a price of | | | | trouble with federal, state, or local |
| $3.95.They Sell at the Wrong Time of the | | | | regulators. You look out the bars of your |
| YearSelling during the month of December and | | | | jail cell and say to your self, "Gee, I told |
| the summer months can yield low sells. | | | | them the bloke told me it was legal." That |
| Experienced operators can estimate what their | | | | means nothing to judges and prosecutors and |
| sales will be during July, for example, and | | | | is not a defense. I get lots of mail and |
| decide if they want to advertise. The | | | | receive illegal offers all of the time. They |
| information is available.Competition Lowers | | | | do not pay off when you pursue them and they |
| or Eliminates ProfitsAs soon as your | | | | can get you into big trouble.Costs Exceed |
| competition sees your ad, they will try to | | | | IncomeOf course, this is the main reason for |
| copy your product and sell it in the same | | | | failure. As an example, Joe Sellmor has a |
| publications your ads are in. They call this | | | | fine product. The sales material is not |
| EMULATION which means they not only copy your | | | | professional in appearance, it is not |
| idea but they improve upon it, making their | | | | describe properly, the potential buyer is not |
| product better or less expensive than yours. | | | | persuaded to buy, and to make things worse, |
| Let's say that you got very excited about | | | | the mailing list is old and to the wrong |
| your product. You sold 1000 booklets in a few | | | | people.Do you know that you can get zero |
| months. Your printer told you that if you | | | | response from a mailing to 1000 people? I |
| printed 10,000 copies, he could drop your | | | | have!Do you know that you can get a high |
| printing cost in half. Wow! You could see big | | | | percentage of returns because the delivery |
| profits. Instead, your competition came in | | | | address was no longer valid? I have!To |
| and put you out of business. You are left | | | | succeed, you MUST GET A LIST BROKER. DO NOT |
| with a bunch of booklets you can't sell. | | | | BUY MAILING LISTS FROM ANY ONE ELSE UNLESS |
| OUCH!The key is to quickly define your | | | | YOU HAVE TESTED THE SOURSE AND KNOW IT TO BE |
| market, jump in, and be ready to jump out. If | | | | GOOD. But even if the list was good, the |
| your ads are pulling less than three times | | | | product may not sell.Let others ask you |
| the cost of the ad, you are getting into that | | | | questions to see if the answers are in your |
| Never Never Land that can break you. Don't | | | | materials. You must answer the customers |
| overstock your products.Remember that it is | | | | questions before he or she asks in direct |
| best to find a product that is not easily | | | | mail.Another thing is to do what many direct |
| reproduced or copied. May the old lady up the | | | | mailer people do. They don't even use mailing |
| road has the best honey in the United States. | | | | lists. They use classified ads to obtain |
| You get a guarantee from her that she will | | | | inquiries. When they get an inquiry, they |
| only sell her honey from her stand, but you | | | | mail them the direct mail offer. They sell to |
| have the rights to sell the product by mail. | | | | about 20-30% of the inquiries.All of this |
| You've got it! You make a deal. If you're old | | | | must be factored into cost before the |
| enough, you will remember the German Coo Coo | | | | campaign begins. Direct Mail is a difficult |
| Clocks sold by mail order after World War II. | | | | business. You are competing against the big |
| The gentlemen that sold them tied up all the | | | | boys.See the references under MAIL ORDER and |
| manufacturers in Europe before he sold. He | | | | order the last three publications. They |
| made one heck of a lot of dough! You can | | | | relate to direct marketing.John T. Jones, |
| still buy them by mail. He cut the | | | | Ph.D. is a retired VP of R&D for a Fortune |
| competition out!The Seller Has Only One | | | | 500 company. He is an author of both fiction |
| ProductYou must pay a price for a customer. | | | | and nonfiction books and has published |
| Most mail-order companies know this. For that | | | | numberous articles in national and |
| reason, they often take a loss on the first | | | | international magazines. |
| order and hope to gain from future orders | | | | |