Post Card Profits

:: Home > Library > Business Ideas/Section-6

Selling with post cards is unique in so far as it affords the
mail order beginner an excellent chance to develop a part-time
business with little or no capital investment.

*** POST CARD PROFITS ***

INTRODUCTION

Selling with post cards is unique in so far as it affords the mail
order beginner an excellent change to develop a part-time business
with a very small capital investment. No expensive or special
training outside of a basic knowledge of advertising and mail
order salesmanship is required. Actually, all that's needed is
average intelligence, common sense and some real effort on your
part. If you're willing to learn the fundamentals and are willing
to strive for your goal, reading this treatise might easily be the
first step of a career that can take you as far as you want to go
in this fascinating phase of mail order selling.

ADVANTAGES OF POST CARD SELLING

In general, the advantages of mail order selling are these, a mode
of business that can be launched with a minimum of capital,
elaborate facilities are not necessary, prospects are unlimited,
activity is simulating and satisfying, can be worked from ones
own home in spare time. Above and over these, there are several
additional advantages peculiar to post card selling that are not
extended to other methods of mail order promotion. Post cards
are relatively easy and inexpensive to handle. By employing post
cards as the sales messenger, the mail order dealer makes the very
best use of his capital, a very small percentage of returns will
bring a profit. Post cards go as first class mail for about the
price of third class matter, which brings a prompt presentation
of the sales message. Perhaps of more importance is the fact that
post cards receive very favorable reader attention in comparison to
the usual third class mailings, and after all, getting the prospect
to read the sales message is half the job in mail order selling.

ITEMS THAT CAN BE SOLD BY POST CARD

New, unique and unusual items are always good post card items,
however, they must be quality or bargain items that serve a real
need to be successful. They should be light in weight and easy to
package and ship, preferably items that are not readily available
in local stores. Generally speaking, items priced between $5.00
and $15.00 are most productive. The scope of products that can
be sold by post cards are almost unlimited. some items that are
currently selling well are books, plans, hosiery, household
gadgets, imported gifts, packaged foods, cigars, novelties,
flower seeds, stationery and toys.

Very few items will sell profitably by mail priced at under 5
dollars. For example on a $3.00 item bearing a 70% markup, a
return of better than 10% would be necessary to make the project
even slightly worthwhile, and $10 would be an exceptional return
indeed. I remember years back when a dollar item pulled a
profitable return, but that was in a bygone era when post cards
went for three pennies.

CAPITAL REQUIREMENTS

In comparison to other mail order ventures, the amount of capital
needed to start a post card mail order business is moderate indeed.
The initial investment may be anywhere from $300.00 and up. At
the minimum you will require approximately $165.00 for printing
and postage of 1,000 cards, $35.00 for the mailing list and an
undetermined amount for stock. You will also need a small supply
of business stationery and an improvised record keeping system.

If at all possible, it is suggested that you also obtain a
typewriter. Business letters written in longhand to sources of
supply or in reply to inquiries will brand you an amateur, and
naturally depress your profit potential. A good rebuilt typewriter
can be purchased for $100.00 or less. Failing to afford this,
one can be rented for a few dollars per month.

It will also be necessary for you to have a small cash reserve
available to enable you to sustain your endeavor from its inception
to the time when it can be operated at a profit. For at least
the first few months you will likely not be taking in as much as
you must spend, consequently, as you spend, capital must be
replaced.

In the absence of sufficient capital to meet the basic requirements
outlined above, it is advisable to wait until you can accumulate
enough funds for initialing your plans in a proper way. During
the saving period, you can perfect your ideas through additional
investigation and study.

NET POTENTIAL

If profit is to be realized, there must be a sufficient margin
between the selling price and cost to cover operating expense and
net profit. This spread between cost of goods and retail price
is called mark-up. While there are always exceptions to the
rule, it is generally agreed among mail order experts that a
mark-up of at least 300% (three times wholesale cost) on any
item marketed by mail is necessary to net a reasonable profit.

Suppose, for example, you are offering a $7.00 item that bears
a mark-up of $5.50 per sale. If the promotional cost is 20
cents per mailing unit (this includes printing of cards, postage
and mailing list), it would cost you $200.00 to reach 1,000
prospects. A 5% return would bring you 50 orders, a gross
return of $350.00 and a net profit of $75.00. As you can
see, unless you handle an item that carries a good margin of
profit on each sale, it might not be feasible to operate
profitably. On the above example, if the mark-up was only
$4.00 instead of $5.50, the consequence would be no net profit
at all.

HOW TO PREPARE SALES COPY

Post card sales copy should be brief, specific, direct and
honest. It must ATTRACT ATTENTION, SECURE INTEREST, PRODUCE
BELIEF or CONVICTION, and finally GET THE PROSPECT TO ACT.
This is a big order for 3x5 inches of copy, so no space can
be wasted, every square inch must be used. Much care and effort
is required in preparing the copy, tell the sales story as
completely as space will permit, give the facts clearly and
dramatically, then ask for the order. Avoid extravagant claims
and fancy language. When writing the copy imagine yourself
talking personally to the person at whom your message is
directed. The very core of successful mail selling is catering
to the interest of the purchaser.

Layout is important, headlines and bi-lines must be well-planned
and effectively positioned. Art work used should have a purpose
in direct relation to the product being offered, and never be
used for mere beauty or atmosphere. An actual illustration
of the item being offered always provides dramatic appeal.

Always remember to incorporate that magic word "GUARANTEED"
into your sales message. It gives the purchaser confidence to
know he can get his money back if he is dissatisfied with his
purchase, and consequently makes the order easier to obtain.

MAILING LISTS

A good mailing list is the key to a successful post card sales
operation, and very careful attention must be given to its
selection. Any list employed must be compiled of names that
have shown a definite interest in, or have previously purchased
by mail, items similar to the product you are promoting.
Professional mailing list brokerage firms can furnish names of
almost any conceivable listing. If you will tell them the
purpose in mind, they can help you select a suitable
classification. However, be careful to avoid lists that are
out of date, improperly organized or too expensive to be used
profitably. Deal only with brokerage firms that will submit
definite data on the development of lists they supply.

Mailing list are usually offered in lots of 1,000 names or more,
typed on sheets of perforated gummed labels ready to affix to
your cards. They are normally priced at anywhere from $30.00
to $75.00 per 1,000.

You can obtain a roster of reliable Mailing List Brokerage firms
by requesting under your business letterhead to Target Marketing,
North American Publishing co., 401 North Broad Street, Philadelphia,
Pa. 19108-9988

IMPORTANCE OF TESTING

After you have selected an item for promotion, your next step
is to test its sales potential with a mailing of 1,000 cards to
a suitable list of names. Should the response from this first
group of prospects contacted prove productive, proceed with an
additional trial mailing of 3,000 cards to the sale list category.
If this mailing turns out to be profitable, indications are very
much in favor of your having a winner on your hands, and you can
start thinking in terms of 10,000 or more for the next mailing
with expectations of approximately similar results as to response.

PROFITABLE "FOLLOW-UPS"

Any successful mail order business is built on repeat orders, the
practice of following up every sale made with new and related items
at regular intervals. The wise operator will be careful to keep an
active record of all his customers, a simple system of 3x5" file
cards can serve nicely for this purpose. Every customer established
represents a valuable asset that should be utilized to the fullest
extent.

Keep in mind - effectiveness of follow-up offers depends upon their
tie-in with the interest already created by the first purchase.
In other words, if your follow-up is something a large percentage
of your customers can use to advantage, and they are satisfied with
the first sale, results are bound to be fruitful. And there is no
need to stop with just one follow-up offer, satisfied customers
can be sold to again and again, provided they are kept satisfied.

STOCK VERSUS DROP-SHIPPING

In general drop-shipping is not desirable. Cost per unit usually
is much higher than when purchased in stock lots. Also, the added
delay in getting the orders to the customers may incur bad-will and
result in excessive returned merchandise. Also, you will want to
keep your customer names confidential. for these reasons, it is
recommended that you invest in putting in a small stock of the
items you intend to market. A word of caution should be given in
this connection however, and that is, since any mail order venture
is at best a gamble, at first it is wise to buy only in the
quantities that are practical for you to handle. As results
justify, you can take on larger quantities and then be entitled
to a greater discount and profit.

LEGAL ASPECTS

No license or permit of any kind is required by the Federal
Government to operate a mail order business. Also, as a rule
there are no local restrictions imposed when interstate commerce
is involved. Consult city and state authorities for general
guidance in this respect.

If you use a "firm" name or any title other than your own personal
name, record this fact at your local post office so that your mail
can be kept straight. In some states the use of a "firm" name is
limited, or the "firm" must be registered. Find out from your
county clerk what the laws are relating to "firm" designations in
your locality.

There are not a great many postal problems that will confront you,
but when in doubt, the quickest and best way to get a specific
answer to any question pertaining to postal rules or regulations
is to inquire at your local post office.

At the time this is written, a number of states have put sales
taxes into effect. According to the best legal opinion you are
not obliged to pay sales tax on any sales covered by interstate
commerce. This means sales made to all states buy the one you
reside in.

IN CONCLUSION

Know exactly what you want to accomplish, set up your campaign
as best you can to accomplish that end, and then carry out your
plan to the letter. Dozens of other people, from all walks of
life, have built a profitable and satisfying mail order business
with post cards, and there is no reason in the world why you
should not be able to do it just as effectively.