Direct mail dilema

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

  1. NateinAtl

    NateinAtl LawnSite Member
    from Atlanta
    Messages: 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?
  2. SprinklerGuy

    SprinklerGuy LawnSite Bronze Member
    Messages: 1,778 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. heygrassman

    heygrassman LawnSite Senior Member
    Messages: 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!!

  4. solaras

    solaras LawnSite Member
    Messages: 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..
  5. SprinklerGuy

    SprinklerGuy LawnSite Bronze Member
    Messages: 1,778

    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 Adams

    Sean Adams LawnSite Gold Member
    Messages: 3,597

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

    Post cards can be very effective, but do not look past the potential effectiveness of direct mail. Direct mail, if put together properly, can get any message you desire directly in front of the audience you want to receive that message. A well written letter, with a call to action, written with a personal touch, on a professional letterhead, in an envelope with company logo on it, with a business card inside, hand addressed, with a first class stamp, signed personally, and addressed personally will out perform any other method of marketing out there. If you are precise with who you want to target and follow the steps above you will weed out on your own the people not interested in your service. Your letter will stand out versus the flyers, door hangers, post cards, etc.... People will take you seriously because they feel you are a professional outfit willing to take the time to separate yourself from all others. A closing rate on post cards, if you are lucky, could be 1%-3%. But an effective direct mail campaign could result in a 14%-18% closing rate. Although it was several years ago, I built my business from 45 accounts (maintenance primarily) one year, to over 130 accounts the next - most being full service high end clients. I sent 2,500 letters which cost me about 50 cents each and I received over 400 phone calls. It was one of the most joyous and painful experiences all wrapped into one. I built my business with high quality accounts which explains the joy, but I also had to turn away a significant number of potential clients as well - all because of direct mail. For the next 7 years I continued to utilize direct mail to the point where every single client I had fit the exact profile I wanted - willing to spend money for a professional service.

    Sean Adams

Share This Page