136 Basic Steps To Mail Order Success
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:
- Neatly printed letterheads and envelopes
- A typewriter - or the availability of one is a must
- Parcel post shipping labels
- Avoid purchasing expensive office equipment or supplies until absolutely needed for more efficient operation - and capital permits
Starting Capital
- To purchase above starting supplies
- To pay for two or three publication ads to test your offer
- Or, to pay rental for a minimum of 1,000 names for a direct mail program, plus postage costs
- To pay for preparation and layout of a display ad
- To pay for art work and typesetting of circular
- To play for additional or continuing promotions if initial results are encouraging.
- Costs to cover promotion expenses if further testing is required
- Extra capital to allow for unforeseen and unexpected expenses
The Product: Select a product that, preferably:
- Is new, unusual and, if possible, exclusively yours
- Is of good quality and fairly priced
- Fills a definite need for a wide and ready market
- Offers strong appeal to the prospect
- Is not commonly sold in retail stores
- Cannot be bought elsewhere or only from limited sources
- You can control its production or distribution
- Is not expensive to make or produce; can be bought at low price
- Interests a large percentage of the market
- Is not seasonable (except Christmas); can be sold the year around
- Lightweight; not fragile; safe and inexpensive to ship
- Will be used up or consumed and must be reordered periodically
Locating A Suitable Mail Order Item:
- Look through mail order sections of magazines to check what types of products successful mail order dealers offer
- Inquire of local manufacturers and Chamber of Commerce
- Attend trade shows (with gift, jewelry, household themes, etc.
- Contact appropriate manufacturers listed in Thomas Register, available at Pubic Libraries
- Watch for new product listings in trade journals and magazines
- Check out close-outs, surplus and overstock offers
- Contact mail order supply sources
- Design, develop, manufacture or publish your own product
The Line:
- Develop or acquire other items to tie in with your main product
- Present follow-up offers to customers and prospects
- Promote succession of products appealing to the same trade
- Sell such services as personalization, consultation, etc., if such services are adaptable to your line
The Advertising Copy:
- Use attention-getting, bold headline copy in ads
- Illustrate the product if space permits; explain how it is used
- Write copy in brief, bouncy, down-to-earth style
- Avoid any overly-clever, tricky phrases or expressions
- Be sincere; don't exaggerate
- Describe the product clearly and fully
- Stress the "YOU" approach; tell how the offer will benefit him
- Avoid overtalking about yourself or your company
- Strive for conviction and sincerity - be believable
- Instill confidence; make the prospect feel you are honest
- Stir him into action to order your product
- Give specific directions for ordering
- Provide a guarantee of satisfaction or money back
- Tailor the ad/literature to fit the prospect you want to reach
Testing Your Offer:
- If capital permits, test more than one magazine
- Test more than one ad, each in a different publication
- Try split runs if the magazine offers regional or sectional issues
- Continue a successful ad without change until its pull drops to break-even point
- Don't rush to change an ad that is pulling well; experiment slowly
- Test only one change at a time: size of ad - copy - different appeal - new headline - another illustration - new price
- Use short testimonials if space permits
- Offer a bonus - something free or at reduced price
- Key each ad or mailing to determine where results were derived
- Keep accurate records of returns from each promotion
Sales Literature:
- Usually consists of sales letter, descriptive circular or folder, order form, return envelope (Some offers may be effectively sold by only a sales letter)
- Effective sales letter must create AIDA - Attention, Interest, Desire, Action
- 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
- Return envelope is an essential part of sales literature to make it convenient for the customer to mail the order
- Mailing sales offers by first-class mail vs third-class mail usually shows no appreciable difference in results
- Mailing envelope can feature an attractive design or teaser message to induce the recipient to open and read the offer
The Product Supplier:
- Develop or produce your own mail order item, if possible
- Try to arrange exclusive mail-order rights with the supplier
- Establish supply sources close to home to save delivery time and shipping costs
- Seek lowest price if item is offered by two or more suppliers
- Order larger quantities, if you can afford such purchases, to get lower prices or greater discounts
- Ensure the supplier is reliable and will provide the merchandise you plan to promote; that he will ship orders promptly
- Consider only products which allow an adequate profit margin (at least a 3 to 1 profit mark-up on lower-priced items)
- Consider a supplier who is willing to "drop-ship" your orders directly to your customers - seek at least a 50% discount
The Selling Price:
- Price merchandise fairly; give customers their money's worth
- Include postage or shipping costs in selling price
- Use round numbers ($3.00, $5.00, etc.) for lower-priced items to make it convenient for customers to remit payment
- Allow for all costs in marking up prices - postage, overhead, packing, allowances for non-deliveries, refunds, bad checks
- Be certain to allow yourself an adequate mark-up to assure profit
- Test different prices to determine which selling price brings in the greatest amount of profit
Advertising:
- 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
- Plan to advertise consistently
- Use ad space relative to sale price, i.e., use small-size ads for low-priced items and larger ads for more expensive items
- Items priced over $3.00 usually do not sell as profitably through classified ads
- In space ads, offer products in the $3.00 to $10.00 price range
- It is usually better to advertise for inquiries if an item sells for $10.00 or more
- Two small ads will generally produce more business than one ad twice as large
- Keep repeating ads as long as they continue to be profitable
- Don't waste unnecessary space; advertising is expensive
- Don't expect to make a killing from one ad or mailing. Consistent advertising is the key to mail order success
The Media:
- 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
- Use only publications with the type of readership who will react favorably to your type of product or offer
- Unsold inquirers should be followed up with special inducements or with new offers
- Rent names only from reliable brokers or mail order sources
- Use only lists of people who are logical prospects for your offer
- Compile a mailing list from your own inquirers and customers
- Offer your names to list brokers; this is a good source for extra income
- Advertise in publications which feature large mail order sections; place ads in the same issues or sections that your competitors advertise
The Advertising Agency
- Select an advertising agency experienced in mail order
- Check their credentials; current accounts; successful promotions
- Don't use agencies which represent direct competitors
- Expect to pay in advance for ad placements and other services until credit terms are established
- Advertising agencies are not infallible. Forgive an honest mistake. Give the agency at least a second chance
- 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
- Extend full cooperation; go along with their recommendations
- 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:
- Fill and ship orders promptly. Mail order buyers get edgy with delays
- Use plain but sturdy packing to ship orders
- Ship via parcel post or U.P.S., whichever is cheaper
- Use neatly printed shipping labels
- Address labels with typewriter; not by hand unless indelible ink is used and address printed.
- Specify "Return Guaranteed" on labels or package
Terms Of Payment:
- Accept personal checks; very few bounce
- 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
- 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:
- Consider the customer your greatest asset. Acknowledge that he is always right - even when he isn't.
- Handle complaints promptly; write courteous explanation
- Offer replacement if product is broken or damaged
- Issue immediate refunds; adjust overpayments promptly
- Promote new or other products to your customer list. No other class of prospect will be as responsive
- Work your customer list until it no long proves profitable.
You:
- You, mainly, control the destiny of your mail order business
- Be energetic; devote as much time as you can spare to advance your enterprise to a more profitable future
- Be determined to make you mail order business a huge success
- Learn as much as you can about mail order techniques
- Be original; exclusive
- Don't copy anyone; copy only successful methods and techniques; always strive to improve on them
- Keep searching diligently for new, "exclusive" products
- Don't become disappointed by a slow start, or discouraged by a failure or two along the way
- Always perform professionally; an amateur does not get paid for his services
- Build your own financial pyramid; reinvest profits into productive programs that may mushroom your profits steadily
- Avoid being an easy mark for "get-rich-quick" schemes; start and operate your business on sound principles
- Refer to this handy checklist periodically - remind yourself to follow only accepted guidelines that control the safe operation of a mail order business.
BEST OF SUCCESS!