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Empty Mailbox: The Truth About Mail Order and Direct Mail Businesses

Beginners lose money in direct mail and mailfrom the same customer. Many operators have
order because they are given the impressioncatalogs that they send to their customers to
that they need little knowledge and money togain repeat orders. That is what mail order
succeed. The truth is that each mail orderis all about. You want to get customers, make
and direct mail is just that, a business. Itthem loyal to you, and sell, sell, sell.Don't
requires knowledge and skills to operate andforget that most products have a life cycle.
succeed.Our purpose is to describe the aboveIt may not be too long before you can't give
businesses, but more importantly to give youa product away. You must find or develop new
sources to help you find the information youproducts. See the references to see how to do
need to succeed.MAIL ORDERMAIL ORDER is thethis. Let me tell you a secret: It is a great
process of selecting a product, advertisingadvantage to operate mail order out of an
it in print magazines or newspapers, (andexisting business that has walk-in customers.
also consider radio and television) andThat way, you are always in contact with your
fulfilling the orders that come in to yourcustomers one-on-one and you can assess their
mail box.Many have made millions in mailneeds and wants. Your products tested locally
order. Others have and continue to earn awill also sell by mail order.The Seller is
good living. Over the years, they haveShutdown for False AdvertisingDon't think
learned the business by testing their ads inthat federal, state, and local officials are
local or regional publications before goingnot watching your business practices. They
national or purchasing display ads.This isget complaint every day. You must deliver
what happens to many: THEY PICK A PRODUCTaccording to the rules (see the references).
THAT NOBODY WANTS TO PURCHASE BY MAILPerhapsThe product must be as advertised. Deceptive
its easier for the customer to buy the sameadvertising is not allowed. Years a go, a
product locally. It's an original productmail order operator advertised a
never sold by mail order but nobody wants toprofessionally engraved portrate of George
purchase it by mail. The problem here is thatWashington. He send a postage stamp with
the seller never studied the market enough toGeorge Washington engraved portrate as the
see if such a product would sell by mailproduct! Don't try that in this day of age.
order. There may be too much competitionYou could go to jail!REFERENCES FOR MAIL
locally, in the media being used, or on theORDERWhen ever I want to purchase a book, I
Internet.They Price the Producttry to buy it at a discount. To do this, I go
IncorrectlyExperienced mail order operatorsto one of the online book sellers and try to
test classified ads by changing the price offind a used one in good condition. Just put
the product. For example, a booklet with aMail Order in the search box and read the
cost of $1.00 to print might be offered atdiscriptions carefully. Also, search the
$2.95, $3.94, and $5.95. when the orders comeInternet using the same technique. Contact
in, the seller counts the number received atthe United States Printing Office for more
each price offered, records the cost of theinformation. 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 costcommerce.I don't like to push my sites in the
and determines the profit. The seller thencontent of a newsletter but I do have
knows the best price to sell thematerials at (IWS Sources) and (ClickBank
product.Let's say that the classified ad costsources). 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 300other book,especially if you are in the
booklets. The cost of the booklets ismail-order business, buy this one! However,
$300.00. Adding the ad cost, he has $450.00it does not replace the following books. Get
cost. Let's say it cost him $0.60 to shipat least one of these.HOW TO START AND
each book because the booklet weighs 2 oz. SoOPERATE A MAIL-ORDER BUSINESS By Julian L.
300 booklets would take $180.00 to mail. NowSimon ISBN 0070575312BUILDING A MAIL-ORDER
our cost is at $630.00. The total receivedBUSINESS By William A. Cohen, Ph.D. ISBN
from the buyers is $885.00, leaving a profit0471109460DIRECT 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 booksbrochure, an order form, and a self-addressed
and the ad is $430.00. It cost him $168.00 toenvelope. When the customer orders, you send
ship the books. The profit is $562.00He sellsthe 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 $36.00object is to find a customer and then to keep
to mail them and he has the book cost plusthe customer for as long as possible so that
the ad cost of $210. His profit is $51.00.Sohe 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 $255.00TheMAILThe Offer is IllegalJust because some
profit at the $3.95 price was $562.00Theblock told you that an offer was legal it may
profit at the $4.95 price was $51.00Thenot be legal. All of a sudden you are in
seller places his national ads at a price oftrouble with federal, state, or local
$3.95.They Sell at the Wrong Time of theregulators. You look out the bars of your
YearSelling during the month of December andjail 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 theirmeans nothing to judges and prosecutors and
sales will be during July, for example, andis not a defense. I get lots of mail and
decide if they want to advertise. Thereceive illegal offers all of the time. They
information is available.Competition Lowersdo not pay off when you pursue them and they
or Eliminates ProfitsAs soon as yourcan get you into big trouble.Costs Exceed
competition sees your ad, they will try toIncomeOf course, this is the main reason for
copy your product and sell it in the samefailure. As an example, Joe Sellmor has a
publications your ads are in. They call thisfine product. The sales material is not
EMULATION which means they not only copy yourprofessional in appearance, it is not
idea but they improve upon it, making theirdescribe 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 aboutthe mailing list is old and to the wrong
your product. You sold 1000 booklets in a fewpeople.Do you know that you can get zero
months. Your printer told you that if youresponse from a mailing to 1000 people? I
printed 10,000 copies, he could drop yourhave!Do you know that you can get a high
printing cost in half. Wow! You could see bigpercentage of returns because the delivery
profits. Instead, your competition came inaddress was no longer valid? I have!To
and put you out of business. You are leftsucceed, 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 yourYOU HAVE TESTED THE SOURSE AND KNOW IT TO BE
market, jump in, and be ready to jump out. IfGOOD. But even if the list was good, the
your ads are pulling less than three timesproduct may not sell.Let others ask you
the cost of the ad, you are getting into thatquestions to see if the answers are in your
Never Never Land that can break you. Don'tmaterials. You must answer the customers
overstock your products.Remember that it isquestions before he or she asks in direct
best to find a product that is not easilymail.Another thing is to do what many direct
reproduced or copied. May the old lady up themailer 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 willinquiries. When they get an inquiry, they
only sell her honey from her stand, but youmail 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 oldmust be factored into cost before the
enough, you will remember the German Coo Coocampaign 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 theboys.See the references under MAIL ORDER and
manufacturers in Europe before he sold. Heorder the last three publications. They
made one heck of a lot of dough! You canrelate to direct marketing.John T. Jones,
still buy them by mail. He cut thePh.D. is a retired VP of R&D for a Fortune
competition out!The Seller Has Only One500 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 thatnumberous articles in national and
reason, they often take a loss on the firstinternational magazines.
order and hope to gain from future orders



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