This "mini" course outlines the essential elements for establishing and operating a successful mail order business. Here is a practical guide for beginners and check list for those already in mail order.
THE COMPANY NAME:
Select a short, friendly, informal, easy-to-remember company name.
Your personal name is acceptable, but add "Co.", "Gifts", etc.
Home address or post office box makes no appreciable difference.
STARTING SUPPLIES:
4. Neatly printed letterheads and envelopes
5. A typewriter - or the availability of one is a must
6. Parcel post shipping labels
7. Avoid purchasing expensive office equipment or supplies until absolutely needed for more efficient operation - and capital permits
STARTING CAPITAL
8. To purchase above starting supplies
9. To pay for two or three publication ads to test your offer
10. Or, to pay rental for a minimum of 1,000 names for a direct mail program, plus postage costs
11. To pay for preparation and layout of a display ad
12. To pay for art work and typesetting of circular
13. To play for additional or continuing promotions if initial results are encouraging.
14. Costs to cover promotion expenses if further testing is required
15. Extra capital to allow for unforeseen and unexpected expenses
THE PRODUCT: (Select a product that, preferably):
16. Is new, unusual and, if possible, exclusively yours
17. Is of good quality and fairly priceD
18. Fills a definite need for a wide and ready market
19. Offers strong appeal to the prospect
20. Is not commonly sold in retail stores
21. Cannot be bought elsewhere or only from limited sources
22. You can control its production or distribution
23. Is not expensive to make or produce; can be bought at low price
24. Interests a large percentage of the market
25. Is not seasonable (except Christmas); can be sold the year around
26. Lightweight; not fragile; safe and inexpensive to ship
27. Will be used up or consumed and must be reordered periodically
LOCATING A SUITABLE MAIL ORDER ITEM:
28. Look through mail order sections of magazines to check what types of products successful mail order dealers offer
29. Inquire of local manufacturers and Chamber of Commerce
30. Attend trade shows (with gift, jewelry, household themes, etc.
31. Contact appropriate manufacturers listed in Thomas Register, available at Pubic Libraries
32. Watch for new product listings in trade journals and magazines
33. Check out close-outs, surplus and overstock offers
34. Contact mail order supply sources
35. Design, develop, manufacture or publish your own product
THE LINE:
36. Develop or acquire other items to tie in with your main product
37. Present follow-up offers to customers and prospects
38. Promote succession of products appealing to the same trade
39. Sell such services as personalization, consultation, etc., if such services are adaptable to your line
THE ADVERTISING COPY:
40. Use attention-getting, bold headline copy in ads
41. Illustrate the product if space permits; explain how it is used
42. Write copy in brief, bouncy, down-to-earth style
43. Avoid any overly-clever, tricky phrases or expressions
44. Be sincere; don't exaggerate
45. Describe the product clearly and fully
46. Stress the "YOU" approach; tell how the offer will benefit him
47. Avoid overtalking about yourself or your company
48. Strive for conviction and sincerity - be believable
49. Instill confidence; make the prospect feel you are honest
50. Stir him into action to order your product
51. Give specific directions for ordering
52. Provide a guarantee of satisfaction or money back
53. Tailor the ad/literature to fit the prospect you want to reach
TESTING YOUR OFFER:
54. If capital permits, test more than one magazine
55. Test more than one ad, each in a different publication
56. Try split runs if the magazine offers regional or sectional issues
57. Continue a successful ad without change until its pull drops to break-even point
58. Don't rush to change an ad that is pulling well; experiment slowly
59. Test only one change at a time: size of ad - copy - different appeal - new headline - another illustration - new price
60. Use short testimonials if space permits
61. Offer a bonus - something free or at reduced price
62. Key each ad or mailing to determine where results were derived
63. Keep accurate records of returns from each promotion
SALES LITERATURE:
64. Usually consists of sales letter, descriptive circular or folder, order form, return envelope (Some offers may be effectively sold by only a sales letter)
65. Effective sales letter must create AIDA - Attention, Interest, Desire, Action
66. The circular should fully illustrate or describe the product. It must provide more detailed information about the product - its uses, benefits, advantages and other special appeals
67. Return envelope is an essential part of sales literature to make it convenient for the customer to mail the order
68. Mailing sales offers by first-class mail vs third-class mail usually shows no appreciable difference in results
69. Mailing envelope can feature an attractive design or teaser message to induce the recipient to open and read the offer
THE PRODUCT SUPPLIER:
70. Develop or produce your own mail order item, if possible
71. Try to arrange exclusive mail-order rights with the supplier
72. Establish supply sources close to home to save delivery time and shipping costs
73. Seek lowest price if item is offered by two or more suppliers
74. Order larger quantities, if you can afford such purchases, to get lower prices or greater discounts
75. Ensure the supplier is reliable and will provide the merchandise you plan to promote; that he will ship orders promptly
76. Consider only products which allow an adequate profit margin (at least a 3 to 1 profit mark-up on lower-priced items)
77. Consider a supplier who is willing to "drop-ship" your orders directly to your customers - seek at least a 50% discount
THE SELLING PRICE:
78. Price merchandise fairly; give customers their money's worth
79. Include postage or shipping costs in selling price
80. Use round numbers ($3.00, $5.00, etc.) for lower-priced items to make it convenient for customers to remit payment
81. Allow for all costs in marking up prices - postage, overhead, packing, allowances for non-deliveries, refunds, bad checks
82. Be certain to allow yourself an adequate mark-up to assure profit
83. Test different prices to determine which selling price brings in the greatest amount of profit
ADVERTISING:
84. Don't attempt to start unless you can afford at least two or three ads; or pay for a direct mailing to at least 1,000 names
85. Plan to advertise consistently
86. Use ad space relative to sale price, i.e., use small-size ads for low-priced items and larger ads for more expensive items
87. Items priced over $3.00 usually do not sell as profitably through classified ads
88. In space ads, offer products in the $3.00 to $10.00 price range
89. It is usually better to advertise for inquiries if an item sells for $10.00 or more
90. Two small ads will generally produce more business than one ad twice as large
91. Keep repeating ads as long as they continue to be profitable
92. Don't waste unnecessary space; advertising is expensive
93. Don't expect to make a killing from one ad or mailing. consistent advertising is the key to mail order success
THE MEDIA:
94. Newspapers with mail order sections bring quick returns and are acceptable for initial test. Results are not usually as good as from magazine ads for long-range pull
95. Use only publications with the type of readership who will react favorably to your type of product or offer
96. Unsold inquirers should be followed up with special inducements or with new offers
97. Rent names only from reliable brokers or mail order sources
98. Use only lists of people who are logical prospects for your offer
99. Compile a mailing list from your own inquirers and customers
100. Offer your names to list brokers; this is a good source for extra income
101. Advertise in publications which feature large mail order sections; place ads in the same issues or sections that your competitors advertise
THE ADVERTISING AGENCY
102. Select an advertising agency experienced in mail order
103. Check their credentials; current accounts; successful promotions
104. Don't use agencies which represent direct competitors
105. Expect to pay in advance for ad placements and other services until credit terms are established
106. Advertising agencies are not infallible. Forgive an honest mistake. Give the agency at least a second chance
107. Expect to pay for preparation of display ads, copy layout, and other services you authorize. Classified ad copy will be prepared without any cost to you
108. Extend full cooperation; go along with their recommendations
109. If your advertising budget is substantial, consider setting up your own advertising agency - thereby saving 15% commission, plus a 2% discount in many instances
SHIPMENTS:
110. Fill and ship orders promptly. Mail order buyers get edgy with delays
111. Use plain but sturdy packing to ship orders
112. Ship via parcel post or U.P.S., whichever is cheaper
113. Use neatly printed shipping labels
114. Address labels with typewriter; not by hand unless indelible ink is used and address printed.
115. Specify "Return Guaranteed" on labels or package
TERMS OF PAYMENT:
116. Accept personal checks; very few bounce
117. Avoid C.O.D.'s unless you receive sufficient down package to assure you have collected enough to cover the costs of the return, plus costs of handling and repacking the merchandise
118. Don't offer to sell on credit or time payments unless item is high-priced and you can afford to carry credit accounts
THE CUSTOMER:
119. Consider the customer your greatest asset. Acknowledge that he is always right; even when he isn't
120. Handle complaints promptly; write courteous explanation
121. Offer replacement if product is broken or damaged
122. Issue immediate refunds; adjust overpayments promptly
123. Promote new or other products to your customer list. No other class of prospect will be as responsive
124. Work your customer list until it no long proves profitable
YOU:
125. You, mainly, control the destiny of your mail order business
126. Be energetic; devote as much time as you can spare to advance your enterprise to a more profitable future
127. Be determined to make you mail order business a huge success
128. Learn as much as you can about mail order techniques
129. Be original; exclusive
130. Don't copy anyone; copy only successful methods and techniques; always strive to improve on them
131. Keep searching diligently for new, "exclusive" products
132. Don't become disappointed by a slow start, or discouraged by a failure or two along the way
133. Always perform professionally; an amateur does not get paid for his services
134. Build your own financial pyramid; reinvest profits into productive programs that may mushroom your profits steadily
135. Avoid being an easy mark for "get-rich-quick" schemes; start and operate your business on sound principles
136. Refer to this handy checklist periodically - remind yourself to follow only accepted guidelines that control the safe operation of a mail order business.
Friday, May 2, 2008
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment