Direct mail 101: How to market your product

9373322_sWhen you are thinking about marketing your product, of course you’ll want to consider what channels to use to get your product out there.

While some marketers automatically rule out direct mail because it is expensive, you may be surprised at how cost effective direct mail can be for the right products.

So, do the math to find out how much you can safely spend, and determine if and when direct mail will be profitable.

Plug direct mail math into your marketing plan

Let’s say you sell a teaching collar for dogs that promotes heeling without choking. Calculate your selling price and what you charge for shipping and handling to get your gross revenue per order.

Then take the gross revenue per order and subtract the total cost per order, including:

  • product cost
  • credit card processing fees
  • 800 number costs
  • no pays, returns
  • fulfillment
  • shipping costs
  • list rental charges and postage

You get the idea.

Then work in your profit, treating that as a cost.

Take your gross revenue per order and subtract the cost per order and the profit: That number is the basis for your direct mail 101how to market a product calculations and budget.

Figure in the anticipated response

Now, you can determine what kind of response you will need and how many doggie collar orders you require to break even. If you’ve mailed before and you know your average response, you can plug that in, or use a current industry benchmark to calculate the number of pieces you must mail.

Once you set your direct marketing budget, you can determine at what cost per thousand you’ll have to come in at, to get the number of responses you require.

This thumbnail will give you a ballpark idea of whether direct mail might be a profitable channel for your new product.

Take the guesswork out of your next marketing campaign

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When it comes to direct response marketing we got you covered — from concept to completion. So why not give us a call, or click the link above today?

After all, it’s your business…