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Member You - Don't Let New Postal Rates Put You Out of Business
It has been said that one of the greatest fears people hold is speaking in front of a group of people, yet we seem to have no shortage of public speakers. There is a kind of speaking that inspires greater fear. This is the fear of having a real conversation.Conversation is when two or more people talk openly and honestly, listen deeply to each other, and reach a common understanding. Agreement is nice, but irrelevant. The art of conversation is not about getting someone to agree with you. It is about seeking and finding a common understanding.The
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 shipmen
A few months ago I was raving about Netflix, an online movie rental service that enables you to use your letter carrier to get and return videos instead of wasting your precious time and gasoline.And Netflix does constitute an improvement over other movie delivery channels, as I see it.Cable and satellite force you to buy packages of movies at a high cost, or you must pay a premium price for individualized pay-per-view options.Also, their selections are limited, while Netflix, and perhaps others like Blockbuster, can offer 60,000 or more ti
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 offer in their packaging. He can include their offer in his shipment
This has been the question that all successful network marketers eventually must ask themselves. Unfortunately, you can’t have them both.Making the wrong decision on this question may provide you with an influx of temporary cash, but you will NEVER find a home. You will never be able to build a residual income stream that can be passed down to future generations.Unfortunately the problem with many “Quick Hit, Fast Money” programs is they attract 2 types of network marketers, the Vultures and the Followers. Make no mistake about it, you are
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 offer in their packaging. He can include their offer in his shipmen
Sometimes the freelance writing jobs available are those that no one wants. Or, they are those that new businesses are looking to fill. You will not find postings for the best jobs and employment because many of those jobs go to individuals who already have an established career or a good working relationship with those businesses. For those looking for career advice to find the best freelance writing jobs available, they can find a few things here that will help them get the experience they need or at least get a foot in the door.The most imp
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 offer in their packaging. He can include their offer in his shipmen
I was an insider that learned the industry first-hand and discovered what the Yellow Pages was all about. It’s actually about a small pamphlet that began with a few names in Wyoming in the 1880’s and then became a household standard. It’s about a media that most people still turn to when they have a need. It’s about how even the smallest business can compete with the largest guy on the block. But wait a moment. First let me tell you who I am and why you should listen to me.I was a YP rep and consultant for nearly 25 years and, prior to that, had my own a
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 offer in their packaging. He can include their offer in his shipmen
Forging partnerships to improve market penetration has become commonplace, particularly for “new economy” businesses. And, most companies proudly mention their many partnerships in their business plans.The fact is that, regardless of whom the partnership is with, partnerships by themselves are meaningless. What are meaningful are the terms of the partnership. For instance, while it sounds great to have a partnership with a Fortune 500 company, the details of the partnership are what investors find important. For instance, investors will look poorly upon
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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