# Direct mail dilema

Discussion in 'Business Operations' started by NateinAtl, Jan 10, 2002.

1. ### NateinAtlLawnSite Memberfrom AtlantaPosts: 121

I am wanting to do a direct mailing campaign here in the Suburbs of Atlanta. In my research, I have determined that there are over 70,000 homes, at a value of 150,000 or higher, within a 25 mile radius of me.

I am wanting to send post cards out to about 20,000 households that meet a specific demographic. I can look up the addresses in a directory at the library and match them with specific neighborhoods that I want to target-(keep in mind, there are many neighborhoods down here that have over 500 homes). The problem is that it will take many hours to transfer the street addresses to labels to put on the postcards. I'm thinking maybe 100 hours. It is mathmatically possible to get them done before I need to send them out, and much cheaper to do this way instead of hiring a direct mailing company that can't gaurantee that they will send out cards to the houses I desire. But 100 hours is a long time for me to be typing up labels!!

What do you guys suggest I do?

infousa.com will send you the names on mailing labels or a computer file for you to mail merge a document. Expect to pay at least .10 per name.

And then expect to get about a .1% response rate. Notice the decimal point please.

3. ### heygrassmanLawnSite Senior Memberfrom Columbus, OhioPosts: 509

Just to give you the dynamics of a mail drop like you are projecting...

The cost per address per sprinkler man is pretty accurate for resonable (not great) qualified leads.

Leads .1 @ 20,000 = \$2,000
Production .06*20,000 = \$1200
Piece Design = \$400
Postage .20@20,000 = \$4,000 (if you can find a mail house
that will do it at a bulk rate)
Total \$7,600
Total Cost in home \$.38 (Quanties close to 100K get close to \$.29-\$.27 per piece
Cost per sale at
.1% Response Rate(20 New Customers) \$380(\$7600/20)
.5% Response Rate(100 new customers) \$76 (\$7600/100)
1% Response Rate (200 new customer) \$38 (\$7600/200)

Direct mail is expensive espically if you do not have a great offer "Free Mulch with an annual contract". I would also recommend getting this done before the postage rates go up another \$.03 (that will cost you another \$600). My numbers may be a little bit high but I have dropped 10+ mail pieces at quantities of over 60,000 each drop(for a different type of product) and the best price I could get inhome was \$.29 for a four color piece (not much difference in price between b/w and color.)

Hope this helps..Good Luck!!

Jeff

4. ### solarasLawnSite Memberfrom St. Pete, FLPosts: 55

Save yourself a whole lot of money & door hang in those areas. Direct mail is a huge waste of money, but that's just my opinion..

We use a val-pak type product.

This year we had pretty high returns resulting in a cost per closed lead of around....\$42.00. Pretty high, but some of those closed resulted in pretty high revenues which translated into good profits.

There are good and bad things about a valpak type mailing. Price is much cheaper, results are a little lower.

6. ### Sean AdamsLawnSite Gold Memberfrom PennsylvaniaPosts: 3,597

This is a post I just wrote for another direct mail question in this same forum....