The Time Has Come
In seven out of ten households in America today, no adult has
the time it takes to go shopping during the day. Consequently,
junk mail isn't so "junky" anymore. People who used to
hesitate before purchasing large ticket items via the mails
are now ordering everything from artichokes to zip lock
freezer bags and there is nothing to indicated that this trend
is going to change. People are also beginning to realize that
mail order can be the least expensive way to shop. The cost of
merchandise purchased through the mails can be considerably
lower because the mail order distributor isn't paying a high
price tag for overhead items such as an expensive sales force
or a fancy showroom.
Stand out In The Crowd
One of the ways to make a profit in the mail order business is
to find a way to stand out -- to get a gimmick -- find a
unique product to sell -- find a product that isn't being sold
in every store or on every street corner. The question is not
so much "What can be sold by mail" as it is, "What can I sell
by mail?" After you've decided on a product (s) or particular
line of products, do your homework. Make the rounds of stores,
street fairs, flea markets and trade shows. Check out
advertising in magazines and pay close attention to the "junk
mail" you receive. If this product you're interested in seems
to show up everywhere you look, you may want to rethink your
choice. If you have a strong sense that this product will sell
and there is a market for it, Then you can begin to consider
how to market your product.
Competing with the Big Boys
Now that you've decided that every household in America really
wants to own one of your pink furs and you are pretty sure
that not many other folks are selling pink furs, you need to
decide how to go about letting all these potential customers
know that you have the best pink furs on the market. How? You
could put together a beautiful catalog with gorgeous models
wearing your pink furs. But keep in mind that the cost of
shooting, printing, and distributing a catalog may be
prohibitive and may require an investment of $100,000 or
more... You will also have to have enough stock on hand to
meet the demand inspired by your catalog and a place to
warehouse all the pink furs you know you'll be selling. When
deciding how much product to stock, remember that the Federal
Trade Commission requires you to ship products within thirty
days of an order so you don't want to advertise a product you
can't readily supply. You may wish to pursue a slower and less
expensive path as you begin your mail order business.
Remember, the Tortoise Beat the Hare
You may want to begin your mail order business as part-time
venture. You could stock just enough pink furs so that you can
store them easily in your garage or basement, set up a
distribution area in your basement with boxes, wrapping paper,
and shipping labels so you can do your own shipping. Or, you
can even have your product dropshipped. In this way you can
keep your overhead low and your initial investment to a
minimum. This type of business often takes two years or more
to really get going, so beginning in your spare time, while
you continue to bring in money, may make you one of the
winners.
Putting Your Best Foot Forward
Many consultants to the mail order industry suggest you begin
with a small classified advertisement, strategically placed,
in a publication with similar mail-order ads. This allows you
to begin selling your product and tests the validity of your
product choice. This is also the place you can start to
collect the names necessary to begin compiling your mailing
list. Those in the know say you need at least 10,000 to 12,000
names (people who have actually purchased products from you)
before you begin putting together your catalog. Pick your
advertising media on the basis of their value in reaching the
type of inquiries that would be interested in your specific
offer. Go over the classified advertising sections of the
magazines or newspapers that seem suitable carefully. In
short, explore any evidence to show that your ad has a good
chance of producing results. Once you've decided where you are
going to run your classified ad, the nest step is the ad
itself.. It should be specific, direct and honest. It must
ATTRACT ATTENTION, SECURE INTEREST, PRODUCE BELIEF OR
CONVICTION, and finally GET THE PROSPECT TO ACT. When writing
the copy imagine yourself talking personally to the person at
whom your message is directed. The advertising must get read -
get action. Make every bit of space count. Before placing your
ad, compare it with those of your competitors, and make sure
that yours is better, or at least just as good if you expect
to get a good response from your advertising.
Tracking Your Advertising
You will want to be able to easily ascertain which of the
advertising media you've chosen get the best results. The
simplest way to track your advertising is to "key" your ads.
Put an indicator in the name or address that will immediately
alert you to the publication which elicited the positive
response, i.e., Suite 1-A (1-A indicated which publication the
response came from). By this means, you will be able to
eliminate your advertisements from unproductive ad media, and
reinvest the savings in more fertile publications.
The Secret to Success
There are six words that pack a terrific wallop in mail order
copy. These words are "Free,"New," "Amazing," "Now," "How-To,"
"Easy." All successful classified advertisers use one or more
of these words in almost every advertisement they write. The
first few words in any advertisement are all-important. Give
this matter Careful study. It your ad gets off to a good
start, you are on your way to success. While the word "Free"
has been greatly abused in the past, it still is mail order's
biggest drawing card. Always remember to incorporate that
magic word "guaranteed" into your sales literature. It gives
the prospective buyer confidence to know that he can get his
money back if he is dissatisfied with his purchase, and
consequently makes the order much easier to obtain. Other
Alternatives Mailing Lists or direct mail offer a convenient
method of securing business quickly by reaching a concentrated
audience within a very short time. This method features broad
coverage at low cost, but like any form of promotion, it
should be used smartly and the pit-falls must be avoided. Only
when the campaign is well thought out, and when the
selectivity of the prospects or "mailing list" is such that
each name represents a potential customer, can direct mail be
considered an economic form of promotion. The mail order
industry considers a 1% response rate average, 2% to 5% is
amazing. This equates out to just 500 orders from the first
50,000 names you contact via a mailing list. Newspapers:
Although the most widely read publications in America are the
local daily newspapers, this medium has decided limitations
for mail order use, especially for the small operator. A
newspaper is usually only kept for one day unlike a magazine
which may be saved for months, possibly gone over carefully by
other members of the family, loaned to friends, or is on file
at the public library. And Sundries Find out about postal
rates and services. You may be able to send your products via
third class or bulk mail. A postage meter may be of use to
you. Finding a good printer is another area where you should
really watch your pennies and the quality of the service
provided. The quality of your sales literature is a very
important factor, and can easily determine the difference
between success and failure. You can't very well expect poor
quality literature printed on cheap paper to produce
satisfactory results. And, not only will you need a printer
for you catalog, but you will need to have brochures, business
envelopes, letterhead and a number of other basic supplies.
Shop around, get the best possible price.
Don't Drop the Ball
To build up a really successful mail order sales operation, it
is smart to have a well organized and planned follow-up
system. Once a customer has been established, you have a
valuable asset that should be utilized to the fullest extent.
The easiest person to get a sale from is someone who has
already purchased your product. ...it's an Adventure Yes, it
does take a while to get the ball rolling, but once a mail
order business hits its stride, it can be much more lucrative
than a retail store. It's not as labor or capital intensive as
a retail store and should net 15% to 25% after taxes. While
the mail order business is not a walk in the park, it is a
great adventure calling for initiative, integrity, good
judgment, lots of courage and determination. You probably have
some or all of these qualities or you wouldn't even think
about starting your own business. There will most undoubtedly
be some ups and downs, but if you stick with it, you could
find yourself with a truly lucrative enterprise.
Copyright 2004 by DeAnna Spencer
Are you content with your advertising budget?
Schedule a coaching session with Frugal Solutions Expert,
DeAnna Spencer.
She will design an affordable online advertising plan for you.
Contact her by sending an email to deanna.spencer(at)gmail.com
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