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Ideas/Section-3
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:
1. Select a short, friendly, informal,
easy-to-remember company
name.
2. Your personal name is acceptable, but
add "Co.", "Gifts",
etc.
3. 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.
BEST OF SUCCESS!