| No claim is made that the steps outlined | | | | The conventional advertising cost is 15% of |
| would be successful for someone else. Each | | | | sales or more inmail order.* To evaluate |
| individual should obtain whatever | | | | your advertising cost, think in terms of cost |
| professional advice may benecessary for his | | | | per inquiry. This is calculated by dividing |
| particular operation. | | | | the number of inquiries into the cost of the |
| | | | ad. that cost may vary from about $$0.80 to |
| | | | $2.00 or more.* Be careful when you |
| | | | allocate advertising funds to small mail |
| INTRODUCTION | | | | order publications. The ad may appear to be |
| | | | very inexpensive. However, a $15.00 ad that |
| | | | gets no response is a lot more expensive than |
| | | | a $150.00 ad that gets over 100 inquiries.* |
| The following is designed to provide a check | | | | Stay away from those publications that have |
| list for new entrants into the mail order | | | | no news or editorial content, and also those |
| field. Each mail order business is | | | | that have poor printing quality.* There |
| different, but there are common elements that | | | | are a number of quality mail order |
| apply to most mail order businesses, as well | | | | publications, but it takes time to find the |
| as some specific characteristics that may | | | | right publication for your product. |
| vary from business to business. The | | | | |
| following suggestions were developed to | | | | |
| assist you in avoiding costly mistakes. | | | | |
| Apply the various points as they relate to | | | | ADVERTISING COPY |
| your specific business. | | | | |
| | | | |
| | | | |
| | | | * Write tight copy.* Write as you |
| COMPANY NAME | | | | speak. You are generally appealing to a mass |
| | | | market.* Prepare your copy carefully. It |
| | | | must fit your specific medium.* The |
| | | | emphasis should be on YOU rather than I, the |
| * Select a short, easily remembered name.* | | | | company.* Be sincere and don't make |
| Unless you are using your own name, it is | | | | unreasonable claims, but remember that you |
| required in most jurisdictions that a trade | | | | are selling.* Try to convince the reader |
| name is either registered with the county or | | | | that you are reliable andtrustworthy.* |
| the state.* Before you spend money for | | | | Give simple specific instruction.* Key all |
| printing material, make sure that the name | | | | ads to test their effectiveness.* Check |
| you choose is not already registered to | | | | and double check, and have someone else check |
| another company. You can usually conduct a | | | | your ad to make sure everything is correct |
| name search with an office of the appropriate | | | | and easy to understand.* Watch where your |
| jurisdiction by telephone.* You may | | | | competitors are advertising.* Experiment |
| consider using a name that describes your | | | | with new publications.* It is generally |
| product. | | | | considered impossible to sell something that |
| | | | costs more than $2.00 - $3.00 direct from |
| | | | either a classified ad or a small display ad. |
| | | | This is because there just is not enough |
| COMPANY ADDRESS | | | | space to convince someone to part with $10.00 |
| | | | or $20.00, for example. It takes a full |
| | | | page ad to do that.* If you use an agency, |
| | | | use one that specializes in mail order, even |
| * Most newly established mail order | | | | if it is located out of town. |
| businesses will operate out of their home | | | | |
| until the volume of the business requires | | | | |
| larger space.* Most mail order businesses | | | | |
| prefer not to use their home address as their | | | | RESPONDING TO INQUIRIES |
| company address. If you do, you will | | | | |
| advertise your home address in regional and | | | | |
| national publications. You have two other | | | | |
| choices, a Post Office Box(POB) or a postal | | | | * Each inquiry you receive in response to |
| box located in a commercial enterprise which | | | | an ad should be answered via First Class, if |
| rents out mail boxes.* A POB is generally | | | | at all possible, within 24 hours.* The |
| the least expensive, both to rent and for | | | | contents of the envelope going to the |
| advertising purposes. (See below) Some | | | | prospective customer should contain: a |
| mail order operators claim that it reduces | | | | circular, promotional flier, or |
| business because people do not trust a POB | | | | mini-brochure, a sales letter, an order form |
| address. Yet there are just as many mail | | | | (the order form can be part of the circular), |
| order operators who disprove this notion. | | | | a return envelope, and other appropriate |
| The decision is yours.* If you rent a mail | | | | information, such as a fact sheet, a free |
| box in a commercial enterprise, your box | | | | report, etc.* In general, circulars should |
| number usually becomes a suite number in the | | | | be limited to one 8 1/2 x 11 page.* A |
| address.* Almost all publications will | | | | sales letter, on the other hand, can be as |
| charge you a full word charge for each | | | | long as it takes to say everything you need |
| component of your address, except the Zip | | | | to say to a prospective customer in order to |
| Code and State which is counted as one word, | | | | sell him the product.* Sales letters |
| Example: Information Books, 300 Main Street, | | | | should have an attention getting opening. |
| Suite 611, Centerville,Md 20910 | | | | The idea of the opening is to get him to read |
| Or:Information Books, Box 1000, Centerville, | | | | the rest of the letter. |
| Md 20910. | | | | |
| | | | |
| | | | |
| | | | POSTAGE AND SHIPPING COST |
| * The first address is counted as 9 words, | | | | |
| the second one as 6 words. Since | | | | |
| advertising costs anywhere from 50 cents to | | | | |
| $10.00 per word (classified advertising) you | | | | * Answer inquiries to your advertising |
| could save a substantial amount of money at | | | | immediately and via First Class Mail. Use |
| the end of the year if you use a post office | | | | Bulk Mail for future mailings.* You can |
| box. | | | | save a great deal of money by getting a Bulk |
| | | | Mail permit. Mail must be sorted by zip code. |
| | | | Get more specific information from your Post |
| | | | |
| TELEPHONE | | | | |
| | | | |
| | | | Office.* Keep your mailing lists clean - |
| | | | updated.* Utilize all of the various mail |
| * Some mail order companies do not show | | | | classes, such as Printed Mail and Book rate.* |
| their phone numbers on their stationery, | | | | Compare costs of shippers other than the |
| others do. It gives the customer some | | | | Post Office.* Guarantee return postage.* |
| comfort to see a telephone number, although | | | | Watch your shipping weight. A fraction of |
| he may never use it.* You can show your | | | | an ounce can make a big difference in a large |
| residence phone number in the appropriate | | | | mailing. |
| printed material, or you can obtain a | | | | |
| business listing for your home.* The | | | | |
| residence phone is fine, for starters, if it | | | | |
| is answered in a professional manner at all | | | | PRINTING COST |
| times.* If you plan to sell higher priced | | | | |
| ticket items, however,(over $15.00) a | | | | |
| business listing would be advantageous since | | | | |
| a prospective customer may pick up the phone | | | | * Very large printers will not be |
| and check with the information operator | | | | interested in your business. Very small ones, |
| whether "Company X" is listed. | | | | quick printers and instant printers although |
| | | | convenient, are generally too expensive. |
| | | | Their equipment is not large enough to be |
| | | | competitive.* There are many medium sized |
| BASIC SUPPLIES | | | | printers that will give you good pricing and |
| | | | quality printing. Often they have the |
| | | | capability to help you with layout and |
| | | | design.* Don't hesitate to use out of town |
| * Be conservative and frugal in your | | | | printers. If you live in a high cost-of |
| acquisition of items that you feel are | | | | -living area, you can probably save a |
| needed. It's always wise to start small, and | | | | substantial amount of money. Many of these |
| as inexpensively as possible, and as you | | | | printers advertise in mail order |
| build profits, you canbuy more and better | | | | publications.* Utilize the promotional |
| items.* The basics are a good quality | | | | material available from your supplier.* |
| computer, Business stationery, business | | | | Until you know what sells, print small |
| envelopes (#10's), and return envelopes, | | | | quantities, even if it is more expensive.* |
| either #6 or #9 is fine. All items should | | | | Use colored paper for your promotional flyers |
| have your business name and addressimprinted | | | | to spice up your offer. Use white paper, |
| on them.* You will also need some mailing | | | | blue or black ink for everything else. |
| labels and some miscellaneous office | | | | |
| supplies. | | | | |
| | | | |
| | | | CUSTOMER PAYMENTS, REFUNDS AND COMPLAINTS |
| | | | |
| PRODUCT | | | | |
| | | | |
| | | | * Accept money orders and checks.* |
| | | | Some mail order companies state in their |
| * If possible, choose a product or | | | | material that they will not ship for 10 days |
| products that people needon an ongoing | | | | to 2 weeks when payment is made with an out |
| basis.* Be sure the product is of | | | | of town check. This may be an unwise |
| acceptable quality. Know theproduct before | | | | practice because, it can create ill feelings |
| you sell it.* If feasible, choose an item | | | | with your customers. NSF checks are rare.* |
| that is not widely availablefrom retailers.* | | | | An increasing number of mail order companies |
| Develop a line of merchandise. It is | | | | accept credit cards - Visa and MasterCard - |
| rarely possible to make money with just one | | | | for payment. It is generally felt that it |
| or two items. The availability of a line of | | | | does increase sales.* If you cannot obtain |
| related products is paramount to mail order | | | | a credit card merchant agreement with your |
| success.* The more specialized your | | | | bank work through a credit card clearing |
| products are, the easier your marketing | | | | house. A number of these companies advertise |
| becomes.* If you are selling books, for | | | | in mail order publications. Since these |
| example, it would be impossible, except for a | | | | companies generally charge between 6-9%, it |
| very large company, to sell all types of | | | | may be wise to set a minimum amount such as |
| books. You may decide to specialize in books | | | | $15.00 for credit card orders.* Remember, |
| pertaining to sports, and may want to go even | | | | "the customer" is always right. An argument |
| further by zeroing in on football or | | | | won,is usually a customer lost.* If you |
| baseball. | | | | receive an order with an underpayment, ship |
| | | | the order and bill the customer for the |
| | | | difference.* Make refunds on overpayments |
| | | | quickly.* Most mail order companies offer |
| SUPPLIERS | | | | a 30 day money back guarantee. Some offer 90 |
| | | | days and even more.* It is unwise to offer |
| | | | money back guarantees on items priced very |
| | | | inexpensively, for example, a $3.00 report. |
| * Your suppliers should provide you with | | | | |
| reliable, quality,and reasonable pricing.* | | | | |
| Since you probably should provide some type | | | | |
| of a money backguarantee (30 days is | | | | RECORD KEEPING |
| standard) you should expect the same | | | | |
| guarantee from your suppliers.* When | | | | |
| buying from out of town suppliers, be sure to | | | | |
| include the shipping charge in comparing | | | | * As in any business, it is important to |
| prices to local suppliers. | | | | keep records.* You need records to tell |
| | | | you what is going on in your business; to |
| | | | evaluate both your revenues and your |
| | | | expenses.* It is also required by law that |
| DROP-SHIPMENTS | | | | you keep certain records.* Keep especially |
| | | | good records of your advertising expenses so |
| | | | you can evaluate your advertising on an |
| | | | ongoing basis. |
| * Under a drop-ship agreement which is | | | | |
| available from many suppliers for a variety | | | | |
| of products, the supplier ships your | | | | |
| customers' orders directly under your | | | | MAILING LISTS |
| shipping label. (Suggested reading: | | | | |
| "American-Drop-Shippers Directory".)* It | | | | |
| is customary that the supplier guarantees not | | | | |
| to include any of his promotional materials | | | | * It is recommended that you do no direct |
| with the shipment; or to use your customer's | | | | mailings, except to your own list of |
| name for any future mailings.* | | | | customers and inquirers, until you |
| Drop-shipping arrangements are suitable for | | | | havethoroughly tested a specific product |
| people just getting started. It allows you | | | | through advertising.* Stay away from |
| not to have to carry a costly inventory.* | | | | inexpensive mailing lists, under $40.00 |
| As your business increases and you develop a | | | | -$50.00 per 1000.* Avoid mailing lists |
| sense of what sells well, you can stock | | | | whose owners make unrealistic claims.* |
| limited supplies of certain fast selling | | | | Work with a list broker who wants to see your |
| items, and continue utilizing drop-shipments | | | | product before he will rent you a list. Lists |
| for slower products. Eventually, as your | | | | are rented for one time use.* Lists from |
| business flourishes, you can carry an | | | | professional list brokers rent from $60.00 |
| inventory of everything you sell.* | | | | andup, per thousand names.* The general |
| Handling your own shipments is advantageous | | | | consensus is that you need to mail a minimum |
| for the following reasons: It cuts down on | | | | of 1000 names to get a fair reading. 5000 |
| your shipping expenses, it decreases the | | | | names would give you a more accurate test.* |
| shipping time, and it allows you to include | | | | Buyer' names are better than names of |
| promotional material directly with the | | | | inquiries.* The best mailing list is your |
| shipment.* When you do utilize | | | | own list of buyers. Second best is your own |
| drop-shipments, be sure to send your customer | | | | list of inquirers. |
| a note that his order is being processed and | | | | |
| he can expect it by, or around a certain | | | | |
| date.* It is unnecessary to make your | | | | |
| customer aware of the fact that the item is | | | | FOLLOW UP |
| being drop-shipped. Include some promotional | | | | |
| material with your letter or note. | | | | |
| | | | |
| | | | * The most important factor in mail order |
| | | | is FOLLOW-UP Substantial profits can be |
| PRICING | | | | generated from this segment, if it is |
| | | | properly handled.* You can generate a lot |
| | | | of sales by including promotional material |
| | | | when filling orders for customers. Other |
| * Buy at a price that allows you an | | | | orders are generated from mailings that are |
| adequate mark-up. In setting your prices, | | | | made to former customers, as well as |
| allow for all costs:* Cost of product, | | | | individuals who inquired about an offer in |
| shipping cost and postage, bank charges | | | | the past.* Send out regular mailings to |
| including credit card charges, wrapping, bad | | | | your customers. At a minimum,four times per |
| debts, rejects, refunds, etc. In addition, | | | | year. However, you can send out mailings as |
| the other normal overhead costs need to be | | | | often as every 6 weeks or so, if you have a |
| considered,. Lastly, there is the | | | | new product to offer.* As you build your |
| substantial marketing cost for advertising, | | | | mailing lists and you send out |
| and for printing ofpromotional items. (See | | | | regularmailings, your orders will start |
| following paragraphs)* Your prices of | | | | flowing in. |
| course, have to be fair and in line with your | | | | |
| competition.* It is not necessary that you | | | | |
| make a big profit on each and every item. | | | | |
| the real profit in mail order comes from | | | | RESEARCH AND EDUCATION |
| follow-up orders.* THE 3 BIGGEST EXPENSE | | | | |
| CATEGORIES IN MAIL ORDER ARE: ADVERTISING, | | | | |
| PRINTING COST, AND POSTAGE. Over 80% of your | | | | |
| total expenses are in this area. Watch these | | | | * Whether you are new to this field or |
| expenses very carefully. | | | | not, to stay on top, you must continue your |
| | | | education by reading books and reports on |
| | | | mail order and subscribing to mail order |
| | | | publications.* Always be on the lookout |
| ADVERTISING EXPENSE | | | | for new products you can offer your |
| | | | customers.* Study the advertising of your |
| | | | competitors. Request theirmaterial and study |
| | | | it.* Study all mailings you receive. |
| * Start with classified ads. As you test | | | | |
| them and know whatis successful, you can | | | | |
| switch to display ads.* To test an | | | | |
| offering and a specific ad, run it once in a | | | | Continue to learn about mail order by |
| specific publication and you should get a | | | | reading, experimenting, and talking with |
| reading that could be very positive or very | | | | other mail order operators. Have patience. |
| negative. It might also be inconclusive. If | | | | Success will not come overnight. It takes |
| that is the case, simply run it again.* It | | | | time to build a successful business. Start |
| is best to test an ad by running it in | | | | slowly and expand your business from your |
| different publications.* Advertise in | | | | profits. |
| publications that advertise similar | | | | |
| products.* If you have a sure seller, buy | | | | |
| larger space.* Special interest products | | | | |
| should be advertised in special interest | | | | Good Luck! |
| publications.* Keep on changing the ad and | | | | |
| offering until you are satisfiedit is right.* | | | | |
| Examples of changes you can make are: size | | | | |
| of ad, copy,appeal, special gimmicks such as | | | | Copyright 2004 by DeAnna SpencerDeAnna |
| discounts, free gifts or reports, etc.* | | | | Spencer is a virtual assistant that helps |
| Remember that a given ad can be 20 or 30 | | | | entrepreneurs run a successful business by |
| times more successful than another ad | | | | providing affordable administrative help. |
| advertising the same product. It pays, | | | | She also publishes a blog for small business |
| therefore, to continue testing until it is | | | | owners. Visit this small business resource |
| just right.* Repeat a successful ad until | | | | today. |
| you no longer get a satisfactory return.* | | | | |