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