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|101 WAYS TO INCREASE MAIL ORDER PROFITS
101 WAYS TO INCREASE MAIL ORDER PROFITS
Published 1991 by Mascor Publishing, Silver Spring, Maryland
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This publication is not meant to be a manual on How To Operate a Mail Order
Business. Its purpose directly and simply, is to provide you with numerous
tips, sources, and ideas, that will save you money, time and effort in
conducting your mail order business. If read carefully, we are sure you
will find it of much value in this regard.
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A mail order business will succeed, if the price at which the item (goods
or service) is offered seems to be lower, all things considered, than the
customer can obtain it for elsewhere.
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A mail order business will succeed if, the offer is unique or exclusive
or appealing for any number of reasons that create or satisfy desire upon
the part of the purchaser.
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A mail order business will succeed if, the customer does not know where
to obtain the goods or services and is attracted by the offer in the advertisement
which fills a need or creates a desire.
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Regarding paper size: The mot common size is 8-1/2x11. The offer may either
be sent in a no. 10 business size envelope (if you are mailing less than
3 or 4 sheets of paper) or 9x12 envelopes for heavier mailings. Odd shape
envelopes may be attention getters, but they have to be custom made, and
the time and cost are very high.
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The quickest and best way to get a specific answer to any question pertaining
to postal rules and regulations is to inquire at your local post office.
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Use the YOU approach in your copy. Regard the customer as a friend. In
a study on successful direct mail copy, it was found the most frequently
used word was "you" and the second most successful word was "your".
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Used colored paper for additional appeal of your offer. Your sales letter
should generally be white, grey or ivory. Circulars, brochures and order
forms will look nicely in a variety of colors such as: Ivory, gold, light
pink, blue, green and canary. The ink color should generally be black.
You may wish a second color, such as red or blue for additional effect,
for headlines, book titles, etc. This can be done for a small additional
charge.
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Have printing done in moderate quantities. While printing is substantially
less expensive in larger quantities, it is best to print in smaller quantities
until you are quite sure you will be using the offer for some time. This
may take a few months of trial and error.
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Whenever you spend money for printing, get a least 2-3 quotes. Your best
bet will most likely be a small or medium size printing company. If you
live in a large metropolitan area, consider getting your printing done
out of town. You will see many ads of mail order printers in the mail order
publications.
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Try a direct mail newsletter; most people read them. Newsletters keep customers
up-to-date and interested. You can speak in a sales pitch, but be subtle.
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Test mailings. 1,000 is a fair test.
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Your business will grow quickly if you serve your customers at every opportunity.
Keep good records on your customers. If you are starting out and do not
have a computer, use small index cards.
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Do not discard the envelops of your inquirers but sell them. The going
price is between 5 and 10 cents per envelope. Mailing list companies will
acquire envelopes in most any quantity. They will generally stipulate that
envelopes are less than 90 days old.
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If you publish a newsletter of adsheet, contact other publishers. If your
circulation is equal to theirs, many will be glad to exchange an equal
amount of ad space with you.
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For your various mailing needs call or write the Office of Consumer Affairs,
Postal Service, 474 L'Enfant Plaza West S.W., Washington DC 20260. They
offer several informative and free publications.
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About colors: According to research, men will prefer these colors in the
order as shown: Blue, red, violet, green, orange, white and yellow. And
women are thought to prefer the following colors in order of preference:
red, violet, blue, green, orange, white and yellow.
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It is interesting to note that three of the largest general mail order
companies began at a time of need, grew as a result of aggressive merchandising
policy, and by a process of adaptation to new conditions remain as leaders
of their field.
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An up-to-date typewriter (a computer and a word processing program is even
better) is absolutely indispensable in the operation of a mail order company.
Business letters that are handwritten will brand the sender as an amateur,
and create a poor impression on prospective customers.
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If you mail to business firms, it'll pay you to take the trouble to get
the names of individuals in each firm. One mail seller found that letters
addressed to business individuals pulled four times as many orders as letters
addressed to the company themselves.
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How do you address your mail? Tests indicate that individually typed envelopes
or hand written envelopes (for certain types of customers) will out-pull
labels every time.
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Write to: Dinner & Klein, 600 S. Spokane St., Seattle, Wash. 98134
and request their free catalog. It has handy instructions in how to prepare
a catalog, as well as prices and information on their various services.
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Tack circulars of your best circulars on public bulletin boards that are
provided in your community, such as grocery stores, coin operated laundries,
etc.
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Ever try filling in the person's name on your form letters? A test pulled
18 orders with the person's name typed in, and only 14 orders without the
fill-in.
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The primary aim of all advertising is to create in the reader a desire
to own what you are selling. To be successful your advertising must be
compiled to contain these four essential elements. It must attract attention,
stimulate interest, arouse desire, call for action.
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Two-page letters pull best when printed on two sides of a single sheet.
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Try dividing your mailing list into one-time buyers and repeat buyers.
Mail follow-ups to the repeaters about every 4-6 weeks, but mail to the
one-timers only about every 3 to 4 months. You'll get the most for the
least out of your list that way.
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Want to offer a premium? Many mail sellers do. A sample is your best bet,
if you can do it. In a test, a sample pulled 153, while a booklet pulled
100, a related novelty pulled 86, and a special service offer pulled 24.
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"Publications Relating To Small Businesses" list dozens of low cost publications
of interest to small mail order business. Write for a free copy to - U.S.
Government Printing Office, Washington, DC 20202.
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To get an idea of the scope of mail order selling, look carefully through
the advertising section of any craft magazine, also general and trade publications,
farm magazines, mail editions of the large metropolitan journals and dailies,
country weeklies, and notice the wide range of offers.
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Articles widely sold over store counters are not generally suitable for
the small mail order dealer to handle.
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Need wholesale book suppliers for your offers? Here are two excellent sources:
Wholesale Book Sources and Book Dealers Dropship Directory, #445 - $12.
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When mailing First Class postage, you will know the results of a test within
two or three weeks. The same test by bulk mail will take about 8 weeks
or longer.
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Free information on becoming a distributor of thousands of items; novelties,
gifts, etc. Mail Order Associates, Inc., 230 Chestnut St., Montvale, NJ
07645.
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It is good business judgement to proceed slowly and test an offer on a
small scale before striking out with any considerable amount of capital.
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Using poorly printed and cheap looking sales literature is one of the serious
and often fatal errors into which mail order beginners frequently fail.
Prospects, often accustomed to buying through the mail, can spot the work
of an amateur who is not careful to employ sales tools up to standard quality.
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Free 40 page printing catalog and price list from: Lelli Printing, 2650
CR 175, Loudonville, OH 44842.
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Always remember to incorporate that magic word "Money Back Guarantee" into
your sales literature. It gives the purchaser confidence that he can get
his money back if he is dissatisfied with his purchase, and consequently
makes the order much easier to obtain. Statistically there are very few
returns in mail order buying.
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One way to make money is to keep yourself from unnecessary spending. This
is because every dollar you keep is tax-free, that is, you have already
earned it and paid the tax on it. So a dollar saved may be $1.35 earned.
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What is the most magic word in all adverting? FREE!
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The HEADLINE is responsible for 50% of the returns obtained from any advertisement.
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The advertiser's reply to an inquiry should always address itself specifically
to the needs and wants of the prospective buyer. Forget about talking about
you and your company. It's called selfish marketing and of no interest
to the reader.
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Novice mail order advertisers typically make the error of spending more
to get people to express interest than they do to satisfy the interest.
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"Starting and Managing a Small Business of Your Own". This informative
publication is available FREE from - Small Business Administration, 1551
L St., N.W., Washington, DC 20516.
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Books are the ideal mail order product. Here's a few of the reasons. Books
carry a high mark-up. Books mail at a special postage rate. There's no
spoilage with books.
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Interested in becoming a distributor for a wide selection of over 400 books
on business, careers, self-improvement, how-to and general interest? Discounts
of up to 75% Write for free Distributorship information to: Mascor Publishing,
P.O. Box 8308, Silver Spring, MD 20907.
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Ordinarily it is not the product offered that makes a successful mail order
operator, but the selling plan coupled with the energy and determination
behind it.
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Small business loans. Aid for independently owned small businesses which
are unable to obtain financing in the private credit marketplace. Contact
- Director, Office of Financing, Small Business Administration, 1441 L
St., N.W., Washington, DC 20416.
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Are you using professional art-work in your display advertising? If you
aren't, maybe that's why you're not getting the returns you wished for.
Art-work is important as this test shows. Advertising with art-work pulled
12%, the same advertising without art-work pulled only 4.5%.
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If you have an offer that sells well to college students or military personnel
call American Passage - 800-727-7243. Request free Directory of College
Newspapers and Directory of Military Base Papers. You can advertise in
very large University publications for very little money whin compared
to national publications.
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A reply card with a shaded background out-pulls the same card without the
background by at least 5%.
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Letters run off on a printer and sent First Class can average one-third
more returns than a printed or copied letter sent via bulk mail.
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A mailorder project should be planned and established as a sound business,
not a fad or passing fancy. Mail order work is not something to be undertaken
by anyone just because he imagines he wants a business of his own.
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A catalog is not recommended for the beginner; after he gets established
and adds to his line, he is in a position to contemplate a small catalog.
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Even the simplest of mail order enterprises are susceptible to chance.
A necessary talent in the mail order business is the ability to observe
what is happening and what is likely to affect demand.
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Long letters or short letters?: A four-pager sent out by one firm pulled
almost 5% while their old one-page job pulled only 3%. If your present
one page letter isn't producing, it may pay to try a longer letter.
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New mail order products bring fortunes to small operators. Free interesting
information from - Mail Order Associates, Inc., 120 Chestnut Ridge Rd.,
Montvale, NJ 07645.
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Besides the outlay of stationary, circulars, and advertising, you must
have enough money to put in a product in order to give prompt service on
orders. It is, however, generally recommended to utilize the drop shipping
services of a supplier in the beginning stages of a new business.
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It is a very good practice in going though trade papers and other literature,
such as circulars, to watch carefully for articles and series offered and
to file away these tips for possible future reference. Call this your "idea"
or "swipe" file.
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A manual costing less than a dollar in quantity to publish often sells
for ten dollars or more. The buyer is just not purchasing so much paper
and printing, but presumably years of a writer's skill and experience,
the recording of which required tedious hours, days or weeks to make ready
for study for people who want to learn.
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"Women's Handbook, How SBA Can Help You Go into Business". This informative
publication is available FREE from: Small Business Administration, 1551
L St. N.W., Washington, DC 204165.
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One of the ways a mail order operator succeeds is by moving faster and
more surely than his competitors. To do this requires information - quicker
and better information than is available to rivals.
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When you put up your own product, on a small scale to start, the cost of
materials is not of paramount issue. If your product is worthy of making
or putting together, it can be priced high enough to be within competition
and yet be a very good value to the customer.
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Offer a free premium or bonus if the customer orders by a specific date.
Get the customer to act NOW!
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The masses of the people have never demanded equality of fortune, and indeed
understand it to be impossible; but they have always insisted, upon equality
of opportunity.
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The Federal Trade Commission has a rule requiring mail order purchases
be shipped within the time stated in the company's printed or broadcast
offer. If no time is stated, shipment must be within 30 days after the
company received the order. This is often referred to as "The 30 Day Rule".
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For an update in current Mail Order Laws & Regulations, order this
publication from your distributor.
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When the telephone is combined with direct mail, it can result in an increase
in your response by 2 to 6 times, or more. Inquiries generated by advertising
and direct mail can be handled for quick response while interest is still
alive.
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If you are in a position to take orders by phone, you can significantly
increase your business by accepting credit cards as a payment option. Your
best bet to get a bank to grant you credit card merchant privileges will
be with a small bank. If you are unable to find a bank you may want to
consider a clearing house.
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"Let's Do Business". This informative publication is available FREE from
- Publications Service, Veterans Administration, 810 Vermont Avenue NW,
Washington, DC 20420.
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In preparing sales literature, if one has no writing gift, outside aid
must be secured. Without it, all is lost.
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Learn something about selling with catalogs. Write for free details and
samples to - Specialty Merchandise Corp., 6061 DeSoto, Woodland Hills,
CA 91365.
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"International Mail Imports". This informative publication is available
free from - Public Information Division, Customer Service, 1301 Constitution
Ave. NW, Washington, DC 20229.
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Save up to 70% and more on all your office supply needs. Multi-page catalog
listing several thousand items, literally everything you need in mail order.
Free on request from - Quill Corp., 100 Schedlter Rd., Lincolnshire, IL
60069-3621.
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Keeping your mailings up-to-date will save money in postage and printing
and make your mailing more effective.
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A new mail order business can be operated without the assist of a computer,
but as the business grows, a computer will save time and make your business
more profitable. This is especially true when it comes to managing your
mailing list.
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Many spare time operators make money year after year with a "how-to" item,
exclusively prepared. The classified columns and display advertising sections
of the craft magazines are replete with such offerings.
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Although inquiry advertising is expensive, it provides more reliable lists
than most other methods. Since every prospect secured through enquiry advertising
has already revealed an interest in the product, aggressive efforts for
sales have an excellent chance of success.
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Buyers lists, to be of any value, must be kept up to date. When any person
appears to be of little or no value as a prospect, his name should be purged
from the list. Most mail order companies will drop the name of a customer
if no purchases have taken place in the preceding 12 months.
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Before printing, prepare an accurate dummy of your mailing for weighing
purposes. Include all pieces. Be sure the weight comes within the one-ounce
postal limit. The smallest fraction of an ounce overweight increases your
postage costs.
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Don't be frightened by early mistakes and losses, expect them. What you
learn from them might be the very essence of your later success.
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"The more you tell, the more you sell" is an old advertising maxim which
is worth remembering. Go easy on gimmicks, give the reader solid information.
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Location of a mail order business is of little importance. Many have been
started in spare time from a person's own home. Nor is age or gender of
any significance. Also, elaborate facilities are unnecessary as would be
in the operation of a store.
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Location as pertaining to the part of the country, large or small city,
street address, etc. is also of no importance. There are many highly successful
mailorder companies operating from small towns that have no name recognition
from most of the population.
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Even a commonplace product can be sold to advantage when promoted with
a sound merchandising plan, especially when given a new twist.
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Use a teaser on the envelope to get the prospect interested right away.
Try something like "Save 50% on..., or "Special Free Offer Inside", etc.
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Make it easy for a prospect to order, include an order blank in all your
mailings. Remind the prospect to "order now". It's the call to action.
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Have you tried advertising in card deck mailings to test response over
conventional promotional methods. Many dealers are finding these quite
profitable.
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Study, study, study. There is a lot to be learned in up-to-date books on
mail order, and in trade periodicals and trade association bulletins. Modern
business is complicated. There's always a lot to know, and surprisingly
enough you can find it out if you just try.
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Be enthusiastic. Your enthusiasm is a big part of getting a customer excited
about a purchase - the positive energy you generate will rub off on customers.
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Review your list maintenance procedures to be sure that address changes
and other corrections are made expeditiously and duplicates are removed.
Excess and undeliverable mail at the new rates could be a major expense.
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Newsletters have proven themselves to be effective promotional vehicles.
Because they tend to stand out from ordinary direct mail pieces ("junk
mail" to the layman).
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Most of the experts agree, a two-time buyer is at least twice as likely
to buy again as a one time buyer. So mail to these more often.
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By using lightweight paper you might squeeze four instead of three pages
into an envelope for the same postage. When circumstances permit, print
on both sides of a sheet.
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Don't over control your operations. Keep control systems straight forward,
allowing room for experimentation, risk taking and managerial discretion.
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The only things in which the prospect is interested in is what your product
is going to do for him and what are you going to do for him. What's the
price, and why should he order now.
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Desktop publishing, converting typewritten copy to a highly professional
look may be worth considering.
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The more your sales-letter looks like an actual letter, the better it will
work. Don't be "done in" by advertisement writers who do not understand
this principle.
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Your sincerity about this product establishes a prospect's trust in both
the product and the purchasing experience itself - if you believe in the
product, the prospect is much more likely to buy it.
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Take advantage of special postal discount rates such as "Special Fourth
Class" rate for books, film, recordings, etc. Make a careful comparisons
of parcel post and UPS rates for heavy packages. UPS will be most cost
effective in distances of 1,000 or less miles, and they will generally
be more reliable.
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When people feel they have been treated well and helped to make a good
buying decision, it's a cinch that they'll recommend your service or product
to their friends.
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