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