The company undertakes the compilation but finds that the cost per thousand names runs to about $25.00. This makes the mailing campaign a little more expensive than anticipated. They are about to give up when a “good soul” tells them that the names can be had through Broker A for $15.00, enabling them to continue selling their infant pin-ups through the mail. Of course, Broker A can sell the list at the low price because he has ten, twenty, or more companies that want the same names for their own reasons. Costs of the Mailer In Chapter III, we saw that to speak in an absolute way of costs in any part of mail order was meaningless; but experience does teach that, for safety sake, costs should be kept within certain limitations. In the case of direct mailing, especially for the beginner with limited capital, a maximum outlay per thousand mailing should be $50.00 to $60.00. The initial testing cost may be considerably more (because of higher promotion and material costs for smaller lots) but later mailings must be predicated on keeping to the aforementioned maximum. However, if the mailing is very elaborately prepared and the costs cannot be brought down to these figures, a high enough pull on the test may still make the venture “mailable.” Let us break down the maximum figures, remembering that the costs given are for large quantities and have been averaged out over the country. In very large quantities, a 15% cut can probably be realized.
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08-31-2006
