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Casual Articles - Don't Let New Postal Rates Put You Out of Business
Professor of advertising at Harvard University, Neil H. Borden, said, “In our economy, advertising is the chief means by which businesses communicate with the customers about their products or services to bring about an exchange.”The key word that leads to effective advertising is….communicate.If advertising’s function is to communicate, let’s examine the stages in the advertising communication process.Communication experts generally agree on the stages of the communication process: unawareness, awareness, comprehension, conviction, and fi
He requests a discount from his vender of 10% and gets it.
He spoofs up his sales letter emphasizing the (new) low price.
He includes a discount coupon for the next purchase.
Joe is able to increase the response to 2%. Can you calculate the profit on the first mailing under the new conditions?
Order Income $2380.00 (remember there are 20 orders this time)
Shipping Cost -100.00
Cost of Goods Sold -900.00 (remember the 10% discount Joe negotiated)
Printing/Postage Cost -640.00 (this didn’t change, did it?)
Profit or Loss $740.00 PROFIT
Joe earns $37.00 on every order.
Joe still has the option of trying a classified ad. He knows that he must work every angle to stay in business.
For example, he can ask other shippers to include his
It seems that, almost every day, some politician, talk-show host, high-visibility CEO, athlete, or celebrity says something or is caught doing something that is embarrassing, damages their reputation, or can even end a career. I could easily name the names here of people who have found themselves in these difficult circumstances in the past few months but I’d quickly run out of my allotted space for this column and it wouldn’t serve any positive purpose. In most cases the problem gets worse, usually much worse, when the person attempts to deny the allegations
Increasing postal rates have been hurting mail order and direct mail businesses for a long time. Will this last raise be the straw that breaks the camel’s back? Some will just give up on making money in direct mail or mail order. The main impact is on businesses that are in the startup stage. Yes, this includes Farmer Brown who is trying to make a buck off his kitchen table.
I use first mail letters to promote my business activities. I use Priority Mail on many shipments. The factor is time.
Customers want their stuff fast. If they bought it in the store they would not have to wait. Any delay in receiving their shipment is detrimental.
Cost can be reduced by using bulk rates for direct mail. Some operators think that hurts response. Does it? I don’t know for sure because I just take their word for it. I don’t use bulk rates. That doesn’t mean that you shouldn’t. Talk to your Postmaster about the opportunity.
Look at This Example of a Direct Mail Program
Joe Blow sends out 1000 letters promoting his product.
The printing cost is $250.00.
The First Class mailing cost is $390.00.
He gets a 1% return or 10 orders for his product.
The postage and printing cost per order is $64.00.
If Joe’s product sells for $100.00 and the product cost him $50.00 AND it cost him $5.00 to ship it, what will he make? (Joe offers FREE SHIPPING as a come on.)
Order Income $1000.00
Shipping Cost -50.00
Cost of Goods Sold -500.00
Printing/Postage Cost -640.00
Profit or Loss -$190.00 LOSS
Joe looses $19.00 on every order.
Now What Happens?
A. Joe has only one product. He would like to raise the price but he thinks that his customers will not pay the increased price. He drops the direct mail program and tries mail order. He places a classified ad for inquiries. He sends his letter to those who respond and gets a 10% response. If Joe’s ad cost $35.00 and he got 100 inquiries and sold 10 of them, what would his cost be?
Order Income $1000.00
Shipping Cost -50.00
Cost of Goods Sold -500.00
Printing Cost -25.00
Postage Cost -39.00
AD Cost -35.00
Profit or Loss $351.00 PROFIT
B. Joe has more than one product. He knows that he will sell that product to 20% of those who sell the first product. He knows that he can get back his money from new orders. He charges for shipping on the second product. He packs the new sales letter in with the first product and here is what happens:
Order Income (2 of the 10) $200.00
Cost of Printing Second Letter 25.00
Cost of Product 100.00
Profit or Loss $75.00 PROFIT
The total LOSS for the direct mail campaign is now $115.00.
Joe still has options. Can he reclaim the rest of the loss by promoting future products?
He knows that his customer list is his most important asset.
But he needs to reduce the loss on the first mailing.
To do this, he makes a moderate price increase to break even. What is the new price? It is $119.00.
He requests a discount from his vender of 10% and gets it.
He spoofs up his sales letter emphasizing the (new) low price.
He includes a discount coupon for the next purchase.
Joe is able to increase the response to 2%. Can you calculate the profit on the first mailing under the new conditions?
Order Income $2380.00 (remember there are 20 orders this time)
Shipping Cost -100.00
Cost of Goods Sold -900.00 (remember the 10% discount Joe negotiated)
Printing/Postage Cost -640.00 (this didn’t change, did it?)
Profit or Loss $740.00 PROFIT
Joe earns $37.00 on every order.
Joe still has the option of trying a classified ad. He knows that he must work every angle to stay in business.
For example, he can ask other shippers to include his o
A hockey coach on "Making the Cut" (a Canadian reality show) this week gave his team a lesson about putting confidence and performance in their respective places. He compared it to a person steering a boat while pulling a water skier. When the driver steers the boat to the left, eventually the water skier will follow to the left too.Using that illustration, he showed how most young or inexperienced players allow their performance to take the wheel of the boat, thus dictating what direction their confidence takes. This is all fine and g
Cost can be reduced by using bulk rates for direct mail. Some operators think that hurts response. Does it? I don’t know for sure because I just take their word for it. I don’t use bulk rates. That doesn’t mean that you shouldn’t. Talk to your Postmaster about the opportunity.
Look at This Example of a Direct Mail Program
Joe Blow sends out 1000 letters promoting his product.
The printing cost is $250.00.
The First Class mailing cost is $390.00.
He gets a 1% return or 10 orders for his product.
The postage and printing cost per order is $64.00.
If Joe’s product sells for $100.00 and the product cost him $50.00 AND it cost him $5.00 to ship it, what will he make? (Joe offers FREE SHIPPING as a come on.)
Order Income $1000.00
Shipping Cost -50.00
Cost of Goods Sold -500.00
Printing/Postage Cost -640.00
Profit or Loss -$190.00 LOSS
Joe looses $19.00 on every order.
Now What Happens?
A. Joe has only one product. He would like to raise the price but he thinks that his customers will not pay the increased price. He drops the direct mail program and tries mail order. He places a classified ad for inquiries. He sends his letter to those who respond and gets a 10% response. If Joe’s ad cost $35.00 and he got 100 inquiries and sold 10 of them, what would his cost be?
Order Income $1000.00
Shipping Cost -50.00
Cost of Goods Sold -500.00
Printing Cost -25.00
Postage Cost -39.00
AD Cost -35.00
Profit or Loss $351.00 PROFIT
B. Joe has more than one product. He knows that he will sell that product to 20% of those who sell the first product. He knows that he can get back his money from new orders. He charges for shipping on the second product. He packs the new sales letter in with the first product and here is what happens:
Order Income (2 of the 10) $200.00
Cost of Printing Second Letter 25.00
Cost of Product 100.00
Profit or Loss $75.00 PROFIT
The total LOSS for the direct mail campaign is now $115.00.
Joe still has options. Can he reclaim the rest of the loss by promoting future products?
He knows that his customer list is his most important asset.
But he needs to reduce the loss on the first mailing.
To do this, he makes a moderate price increase to break even. What is the new price? It is $119.00.
He requests a discount from his vender of 10% and gets it.
He spoofs up his sales letter emphasizing the (new) low price.
He includes a discount coupon for the next purchase.
Joe is able to increase the response to 2%. Can you calculate the profit on the first mailing under the new conditions?
Order Income $2380.00 (remember there are 20 orders this time)
Shipping Cost -100.00
Cost of Goods Sold -900.00 (remember the 10% discount Joe negotiated)
Printing/Postage Cost -640.00 (this didn’t change, did it?)
Profit or Loss $740.00 PROFIT
Joe earns $37.00 on every order.
Joe still has the option of trying a classified ad. He knows that he must work every angle to stay in business.
For example, he can ask other shippers to include his
Careers in banking and related fields are hot careers today, but before you decide on your career path, you may want to learn a bit more about the banking field and what it has to offer you. This particular field offers a great deal of diversity and is well paid as well, but the field is not for everyone. Read on to find out the essential information about careers in banking and decide whether or not a career in banking is the right choice for you. Career Choices in the Banking IndustryWhile you may only think of bank tellers when you think of the bankin
Order Income $1000.00
Shipping Cost -50.00
Cost of Goods Sold -500.00
Printing/Postage Cost -640.00
Profit or Loss -$190.00 LOSS
Joe looses $19.00 on every order.
Now What Happens?
A. Joe has only one product. He would like to raise the price but he thinks that his customers will not pay the increased price. He drops the direct mail program and tries mail order. He places a classified ad for inquiries. He sends his letter to those who respond and gets a 10% response. If Joe’s ad cost $35.00 and he got 100 inquiries and sold 10 of them, what would his cost be?
Order Income $1000.00
Shipping Cost -50.00
Cost of Goods Sold -500.00
Printing Cost -25.00
Postage Cost -39.00
AD Cost -35.00
Profit or Loss $351.00 PROFIT
B. Joe has more than one product. He knows that he will sell that product to 20% of those who sell the first product. He knows that he can get back his money from new orders. He charges for shipping on the second product. He packs the new sales letter in with the first product and here is what happens:
Order Income (2 of the 10) $200.00
Cost of Printing Second Letter 25.00
Cost of Product 100.00
Profit or Loss $75.00 PROFIT
The total LOSS for the direct mail campaign is now $115.00.
Joe still has options. Can he reclaim the rest of the loss by promoting future products?
He knows that his customer list is his most important asset.
But he needs to reduce the loss on the first mailing.
To do this, he makes a moderate price increase to break even. What is the new price? It is $119.00.
He requests a discount from his vender of 10% and gets it.
He spoofs up his sales letter emphasizing the (new) low price.
He includes a discount coupon for the next purchase.
Joe is able to increase the response to 2%. Can you calculate the profit on the first mailing under the new conditions?
Order Income $2380.00 (remember there are 20 orders this time)
Shipping Cost -100.00
Cost of Goods Sold -900.00 (remember the 10% discount Joe negotiated)
Printing/Postage Cost -640.00 (this didn’t change, did it?)
Profit or Loss $740.00 PROFIT
Joe earns $37.00 on every order.
Joe still has the option of trying a classified ad. He knows that he must work every angle to stay in business.
For example, he can ask other shippers to include his
I did not make up the annual income figure in the headline.That is the mean annual salary earned by technical communicators across the United States in 2005 according to the “2005 Technical Communicator Salary Survey” conducted by Society for Technical Communication of which I'm a proud Senior Member.The lowest paid entry-level tech writers made $40,730 and those writers in the supervisory senior-levels made as much as $111,100 in 2005.Not bad considering the image of a “st
Profit or Loss $351.00 PROFIT
B. Joe has more than one product. He knows that he will sell that product to 20% of those who sell the first product. He knows that he can get back his money from new orders. He charges for shipping on the second product. He packs the new sales letter in with the first product and here is what happens:
Order Income (2 of the 10) $200.00
Cost of Printing Second Letter 25.00
Cost of Product 100.00
Profit or Loss $75.00 PROFIT
The total LOSS for the direct mail campaign is now $115.00.
Joe still has options. Can he reclaim the rest of the loss by promoting future products?
He knows that his customer list is his most important asset.
But he needs to reduce the loss on the first mailing.
To do this, he makes a moderate price increase to break even. What is the new price? It is $119.00.
He requests a discount from his vender of 10% and gets it.
He spoofs up his sales letter emphasizing the (new) low price.
He includes a discount coupon for the next purchase.
Joe is able to increase the response to 2%. Can you calculate the profit on the first mailing under the new conditions?
Order Income $2380.00 (remember there are 20 orders this time)
Shipping Cost -100.00
Cost of Goods Sold -900.00 (remember the 10% discount Joe negotiated)
Printing/Postage Cost -640.00 (this didn’t change, did it?)
Profit or Loss $740.00 PROFIT
Joe earns $37.00 on every order.
Joe still has the option of trying a classified ad. He knows that he must work every angle to stay in business.
For example, he can ask other shippers to include his
Job openings are usually abundant for food service workers. Population growth, the increase of many different styles of food, and the upsurge in restaurants have created many new positions. The majority of openings will arise from high turnover, since food service work is often a short-term source of income for students, those between jobs, and trainees who want work experience to enhance their entrance into other hospitality, more lucrative fields.Keen competition is usual for upmarket positions in popular restaurants, International hotels and fine dini
He requests a discount from his vender of 10% and gets it.
He spoofs up his sales letter emphasizing the (new) low price.
He includes a discount coupon for the next purchase.
Joe is able to increase the response to 2%. Can you calculate the profit on the first mailing under the new conditions?
Order Income $2380.00 (remember there are 20 orders this time)
Shipping Cost -100.00
Cost of Goods Sold -900.00 (remember the 10% discount Joe negotiated)
Printing/Postage Cost -640.00 (this didn’t change, did it?)
Profit or Loss $740.00 PROFIT
Joe earns $37.00 on every order.
Joe still has the option of trying a classified ad. He knows that he must work every angle to stay in business.
For example, he can ask other shippers to include his offer in their packaging. He can include their offer in his shipments.
What would you do in this situation? Let us know!
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