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