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Ideas/Section-6
Selling books by mail
can be a profitable and rewarding
business, but unless one is careful (and crafty), it is
profitable only for the book supplier!
The first challenge a newcomer encounters
is finding books
that he (or anyone) can actually sell by mail and make
money. Many book company (not all are publishers) books
have been on +the market for years and and years and have
been offered by literally thousands of "dealers."
Next, the book must be bought at a price
that will enable
the dealer to offer them at competitive prices and still
make a reasonable profit.
Finally, there is the cost of mailing lists,
stationery,
printing, advertising supplies and postage.
Many unsuspecting, would-be book dealers
invest hundreds
of dollars only to learn that "everyone else" is selling
or offering the same books - sometimes to the same mailing
list names.
Book suppliers are not stupid. They know
how difficult and
expensive it can be to locate potential customers across
the nation for their books and are wiling to pay retail prices.
That's why many of them try to find someone
else to do their
advertising and mailing; they can make more money wholesaling
at $2.00 per copy than retailing at $10.
This is especially true for books that
have been around for
a while and those that are only offered by mail -- where the
customer cannot see before he buys.
Some companies offer a partnership deal.
You pay a membership
fee and/or purchase a minimum amount for the privilege of
buying from them at "wholesale" or "sub-wholesale"
(depending
on the size of your membership fee).
They provide copy ready advertisements
and price lists (which
cost them a penny or so each) and the you, the dealer pay to
have them copied (up to 10 cents each), prepared and mailed
out. It is sort of like a partnership where you split the
profits 50:50, but you pay 99 percent of the expenses.
Theoretically, you can sell $1,000 worth
of books and make
$500 profit - but, not so fast. You, as the dealer pay for
the stationery, copying the advertisements and price lists,
mailing list or advertisements, plus all of the postage from
your "half" of the profits.
Unfortunately, your share may not cover
those costs. A good
to excellent mailing list response is 2 to 4 percent for book
offers. When each package costs 35 cents to assemble and mail,
a 4% response yields 40 answered per 1,000 mail outs.
This means the 40 responses cost $8.75
EACH (1,000 pieces at
35 cents, divided by 40). Even if all of them purchased a
book (they won't), you would have to gross $8.75 per sale -
just to break even!
In addition to other individual dealers,
the new book dealer
must also compete with professional direct mailers. these
large companies have machines that stuff, postmark, and sort
by ZIP code (for bulk mailing), thousands of pieces of mail
per hour.
Their mailing costs will average 2 to 25
cents per piece,
compared to our 35 cents because they use bulk rates (and
pre-sort) and because they combine non-competing offers (see
B254, STARTING A CO-OP COUPON BUSINESS FROM YOUR HOME) in
each mailing.
These large mailers do not necessarily
handle the same
books - partly because the suppliers can't afford their
fees (they like orders to be at least 100,000 at a time)
and partly because they don't think they will sell enough
(yes, some of them do work on commission).
For a different view, consider the following
example: "Joe"
started and successfully operated a worm farm, which he
sold when he moved to the city. He believes his knowledge
and experience would be of value to others who might want
to try worm farming and wants to write and sell a "how-to"
booklet on worm farming.
After weeks of work on his manuscript,
he discovers that
it is virtually impossible to find a publisher for his
work because the subject is too specialized (too few
potential buyers) and the author is unknown.
Checking with a "vanity" publisher,
he finds that it will
cost $3.00 per copy to have a thousand copies printed;
$2.00 more if the printer also promotes and sells the book.
Since such a book would have to sell in the $5 to $8 range,
he would have to sell quite a few books just to break even.
Later on, however, he learns that by condensing
the
information (like Reader's Digest does with novels), he
can have it printed as a 12 page "booklet" for about 10
cents per copy in small (under 5,000) orders.
Joe decide to market the book himself through
national ads
in trade magazines, fishing magazines, and/or by mail.
Whether or not he sells enough copies to
make a profit,
his sales will eventually dwindle to the point where he
will be willing to sell his remaining stock of unsold books
for perhaps a dollar each or less.
The book dealer might pay a little more
to obtain Joe's
reprint rights. The book dealer would then own the "rights"
to the booklets and is to free to reprint as many as he
desires -- at a FRACTION OF A CENT PER PAGE because he is
a printer or has large volumes printed.
The booklet is then listed by the book
supplier along with
other products at "wholesale" prices. It will remain in
this category as long as it meets minimum sales requirements.
It will be offered "with full reprint rights" to the public
(potential book dealers) when the book dealer can no longer
market it profitably.
The mail order book industry includes materials
prepared by
[professional journalists who interview a technician for an
hour or so and then "beat out" something they can sell,
as
well as highly qualified writes with first hand experience
in the field they describe.
Book companies also hire commission writers
to create salable
material for any market they see. Some authors honestly try
to pass on their expertise at a fair profit; and other simply
"fake it" or even deliberately follow a line they know
to be
fictional.
Exhibit "A" is articles praising
products and plans in
opportunity magazines that appear only when those products
and plans ALSO appear in large ad).
Ad writers are especially adept at "dangling
the carrot" -
giving the impression that something is about to be revealed,
when they have nothing at all except the ability to lure, or
some cheap trinket that no one would look twice at without
all their "hype".
The professionals in the book selling market
keep abreast of
the current market: what does and does not sell; which
techniques work, and how to obtain the highest profit with the
least investment.
Yet, there is definitely room for the individual
book dealer
who does his homework and uses his head.
The successful book dealer must know the
value and appeal of
the products and have a positive, well planned marketing
system: he must be DIFFERENT.
One major DISADVANTAGE for large companies
is how difficult
it is to "sell" an improvement or innovation. There is
natural
resistance to any change: jealousy, misunderstanding and plain
old ego ("I" didn't think of it).
But an INDIVIDUAL dealer can improvise
on-the-spot: his
advantage is his versatility. He can select and market a
product immediately and does not have to negotiate contracts
or get board approval. he doesn't worry about competing
offers or even company policy. He just places and ad or
rents a list and mails out his material.
Although there are many different ways
to go about setting
up a mail order book dealership, one approach would be
something like this:
1. Find (write, update, buy) a "different"
book (report,
booklet) or subject (occult, survival, worm farming) that
you believe has enough potential value to others to be
marketed profitably. Do some research to qualify you to
intelligently assess the merits of the product and
understand your competition.
2. Establish your price level. Set your
prices and decide
if you want to provide yourself a margin to offer percentage
off "specials" or standard price. Consider wholesaling
and
commission sales to other mailers (including some that you
might network with). Once you establish your prices, be very
reluctant to change them - especially price increases.
3. Develop a marketing plan: write out
exactly what steps you
intend to take in making and following-up sales and sales
attempts. Determine how much you must sell to reach a break
even point with each product and whether you will use ads,
Mailing lists, or both.
You can use a large, expensive ad to fully
explain the merits
of your product, or a small one offers "free details"
to those
who answer. Plan follow-up mailings to those who don't answer
your responses (where legal - you can only mail to names on
rented lists once unless they respond).
Check on non-competing offers that you
can include in your
mailings to help defray mailing and printing costs (or exchange
non-competing ads with your networking partners). Consider
adding products to your line that seem to do well. Never sell
just one product.
4. Design your ad, sales letters and follow-up
materials. Try
controlled variations of each until you find the best wording
and combinations. arrange for printing -- get one that you can
call and order additional copies from a master he keeps on file.
If and when you decide to use the mails, obtain a bulk permit
from your post office and check several professional mailing
list brokers to find a reliable source for good names (many bad
ones are on the market - usually offered by small dealers).
5. Determine and further refine your primary
means of acquiring
leads. The most often used are ads and mailing lists. Radio/TV
is normally restricted to large operations cue to the cost, but
sometimes local radio or cable TV can offer bargain rates. with
ads, it is important to select a vehicle whose readers would
be expected to have an interest in your product. If there is
any doubt, consult and ad agency (your cost is the same; they
get 15% commission from the media).
For mailing lists, work with a recognized,
professional broker
who can help you select the best listing (from millions) for
your product and market. You certainly DO NOT want a "bargain"
list of over-used opportunity seekers.
6. Work out (and carefully follow) a procedure
for filling
orders and keeping accurate customer records. Initially you
may drop-ship some books until you see which ones sell for you.
Your cost is highest (profit lower) with this method, but it
allows you to discover what does and does not sell BEFORE you
stock up.
Stock only items that sell -- to save on
cost plus mailings
(suppliers charge postage AND handling for each drop-shipped
item), plus extra time and paperwork. Base your plan on the
lowest expected profit margin. If later on you find a cheaper
way to procure or sell, you can decide to keep the extra profit
or lower your prices.
Have shipping labels printed with your
return address for both
items you ship yourself, and for those that are drop-shipped
(so they look like they came from your warehouse).
7. Both large and small professional (those
who succeed) mailers
utilize each mailing to the fullest extent: they include more
than one offer in each mailing ( except perhaps the first),
another offer in each package mailed out, they include each
other's non-competing products on a commission basis, and they
always plan ahead.
A book order identifies a customer that
is currently interested
in that subject, who is willing to buy a book, and will do so
by mail. The "pros" keep track of these facts and use
them wisely!
Although some book suppliers claim that
all you have to do is
join, buy their materials and mail to their recommended mailing
lists, this is NOT what we recommend.
We suggest you carefully select and focus
on one product or
category that YOU can market -- and use the "normal" book
supplier program to back up your operation.
The recommended system uses a product that
you feel is a
good "leader" to find customers then offers those customers
additional products in the same general area. Your "leader"
should be easy to describe and offered at a reasonable price
that customers will consider to be fair (after they have the
product).
As orders are filled, include offers for
additional items to
people who have demonstrated their interest in the product
and their willingness to pay. If they don't buy the second
product, offer it again, along with a third, and so forth.
Just be sure that all of the products you
offer meet your
standards if you want to maintain an image of honesty and
fairness. Many mail order dealers are not concerned with
either honesty or fairness; they feel that there are so
many potential customers that they will never run out of
those that they can hoodwink.
We strongly recommend both honesty and
integrity in all
your dealings - it is not only the "right" way; its also
the SMARTEST.
As with any other business, accurate business
and customer
records are vital - they can help your business to succeed,
prevent needless mistakes and keep you out of trouble with
the IRS. You want each customer to receive the right package
and advertisements according to your plan, yet not to be
bombarded with uncoordinated (therefore, wasted) mailings.
You should also need to be able to sit
down with your
financial records from time to time and study them to see
what is working and what is losing money for you, so you can
make in-course corrections to increase profits and eliminate
excess baggage.
These sessions can extremely beneficial:
they equate to
those highly productive "brainstroming sessions" that
major
corporations routinely hold.
BUSINESS SOURCES
COPYRIGHT OFFICE, Library of Congress,
Washington, DC 20559.
Request Form TX (application for copyright) for your text
or advertisements. Copyright protection is free; registration
is $10.
DM NEWS, 19 West 21st St.,New York, NY
10010. Direct
Mailing News, weekly trade paper for large mailing firms.
U.S. SMALL BUSINESS ADMINISTRATION, Washington,
DC 20416.
Information of interest to small businesses. Write for catalog.
AMERICAN PARADE OF CATALOGS Box 3197, Burbank,
CA 91504,
818/846-5576. Advertises your product nationally; charges by
the response.
PUBLISHER'S SERVICES, 6318 Vesper Ave.,Van
Nuys, CA 91411-
23788. Publishes 50 MILLION DOLLAR DIRECTORY Library volume)
and LOW COST ADVERTISING DIRECTORY ($8).
EDITH ROMAN ASSOCIATES, INC. 875 Avenue
of the Americans,
New York, NY 10001. Large, nationally recognized mailing list
broker, with many different types of lists and sorts from $50
per thousand.
MASIL ORDER ASSOCIATES, INC. 120 Chestnut
Ridge Rd.,Montvale,
NJ 07645. Support to independent mail order companies.
DINNER & KLEIN, Box 3814, Seattle,
WA 93814, 206/682-2494.
Mail order materials; mail list broker. Free book. How to
Develop, Keep and Use Mailing Lists.
ZIP TRAGET MARKETING, 401 N Broad St.,Philadelphia,
PA 19108.
Magazine for large mailing order firms. Free subscription
(use letterhead to request).
AMERICAN DIRECT SELLING, 2636 Walnut Hill
Lane, #337,
Dallas, TX 75229. Mailing list broker.
LIST KING, INC., 12 E Walnut St.,Kingston,PA
18701.
IBM compatible mailing list programs and dealerships.
SELECTIVE PUBLISHERS, Box 1140, Clearwater,
FL 33517.
Book supplier.
AMERICAN BOOKSELLERS ASSOCIATION, 122 E.
42nd St.,
New York, NY 10168, 212/867-9060. Book dealer's trade
association.
LONG PUBLISHING CO., Box 1465, Garden Grove,
CA 92642,
714/638-2167. sells approximately 500 different "how to"
and other books for 50-70% off "retail", depending on
dealer plan. drop-ships. Also sells mailing lists, prints
and sales aids.
BEST PERSONALIZED BOOKS, 412 Best Personalized
Plaza,
4350 Sigma Dr.,Dallas, TX 75244. Personalized children's
books. Offers lifetime license. Free kits. write for info.
PREMIER PUBLISHERS, Box 16254, Fort Worth,
TX 76113. sells
approximately 500 different "how-to" and other books for
50-75% off "retail", depending on dealer plan. Drop-ships.
BETTER BOOKS, INC.,Box 471, Dallas, NC
28034. Wholesale
encyclopedias.
HAGEMAN ENTERPRISES, 604 Suntide St.,St
Louis, MO 63125.
Book supplier, drop-ships.
WILSHIRE MAIL ORDER BOOKS, 12015 Sherman
Rd.,North
Hollywood, CA 91605. Book supplier, drop-ships.
DOVER PUBLICATIONS, INC. 31 East 2nd St.,Mineola,
NY 11051.
Discount books, clip art, stencils, etc.
QUILL CORPORATION, 100 Schelter Rd.,Lincolnshire,
Il 60917-4700, 312/634-4800. Office supplies.
NEBS, 500 Main St.,Groton. MA 04171, 800/225-6380.
Office supplies.
SWEDCO, Box 29, Mooresville, NC 28115.
3 line rubber
stamps - $3; business cards - $13 per thousand.
ZPS, Box 581, Libertyville, IL 60048-2556.
Business cards
(raised print - $11.50 per K) and letterhead stationery.
Will print your copy ready logo or design, even whole card.
WALTER DRAKE, 4119 Drake Bldg.,Colorado
Springs, CO 80940.
Short run business cards, stationery, etc. Good quality, but
no choice of style or color.
