In a world when people communicate primarily through electronic means such as emails, messages, and tweets, the importance of beautifully printed postcards and mailers has increased. They stand out among the fleeting texts that are deleted in a matter of seconds. Postcards with useful messages are sometimes displayed on refrigerators alongside “Kinder-artwork,” where they can be admired and appreciated for several days or even weeks. Not every mailer is deserving of being displayed in the hall of honor. A captivating proposition and eye-catching image are both helpful. Image printing specialists that know how to attract attention also have this skill. But how much does it cost to send out direct mail? Listed below are the various costs associated with advertising through direct mail that contribute to an efficient campaign.
Creating a Budget for the Costs of Direct Mail Advertising
Creating a spending plan is an essential part of every marketing effort.
Budget and cost should be calculated for direct mail campaigns based on the following three primary aspects:
- Targeted mailing lists
- Printing for direct mailing
- Team meeting expenses for postage and direct mail advertising
Costs Involved with Direct Mail Lists
There is a good likelihood that, unless you have created your own mailing lists and have a high degree of certainty in the correctness of those lists, you will want to purchase a list containing the names and addresses of the members of the community that you are attempting to communicate with. The cost of the direct mail list will be proportional to the level of specificity of the list as well as how well it overlaps with the demographics of your target audience. There are several varieties of mailing lists, such as:
- Specifically residential areas
- Saturation mailing lists
- Businesses to businesses
- Lists of new movers
If you locate a very inexpensive direct mailing list, there is a possibility that it has sufficient errors to cause you to overpay for postage and not save any money at all. This is an example of the common adage “you get what you pay for.” Always use a direct mailing list service that is located in your area and has a good reputation.
Expenses Connected to Design and Printing
Printing in black and white, in two colors or four colors process, on one or both sides, in high or low volumes, all of these factors might affect the price of printing. The total can be different every time, but depending on the size, color, and breadth of the print job, it can be as low as one penny for each individual piece. The lower the quantity printed and the more standard the size, the lower the unit cost of each mailer!
It is important not to overlook specialist print services such as variable data printing which can result in additional costs. However, this could pay off if they create a postcard that is so memorable that it is displayed on the refrigerator.
The amount of care that goes into a design and the quality of printing can both have an impact on the costs associated with producing 500 flyers or mailing pieces.
Your mailer’s size and weight will vary according to the mode of mailing you choose, as will the dimensions of your mailer. There is a possibility that each mailer will cost as little as $0.19. A skilled direct mail marketer may be aware of strategies that can assist you in reducing delivery costs and provide you with information on the most cost-effective postal rates
How Costly Is Direct Mail Advertising Relative To Its Value, And Does It Work?
To calculate how much you want to spend on direct mail marketing in the long run, you need to begin with the end in mind and decide what you want to achieve.
Consider how much additional revenue a new client brings in for your company, and adjust your budget accordingly.
The following set of questions is designed to assist you in getting started with the process of budgeting for your subsequent direct mail campaign.
How do you figure out your return on investment?
Calculating the effectiveness of direct mail, just like any other marketing endeavor, in relation to the amount of money spent is an exercise. It is easier than you may believe to determine whether or not direct mail is still effective and how effectively it functions due to the fact that the fees associated with direct mail can be one-time charges, are less expensive than other digital solutions, and reach more individuals.
For instance, suppose you were able to get 10,000 widgets at the discounted wholesale price of $1 apiece. This would be a tremendous deal for you because the retail price of these widgets is $5, but the wholesale price was only $1. After deducting the cost of the mailing from the discounted price, you will have an additional $30,000 in profit, which is an increase in profit of fifty percent. You can afford to offer them at a discount of twenty percent.
If you sell an average of four widgets with each purchase, then you will need to make 2,500 sales in order to reach your objective.
How many people are you able to communicate with?
According to the 2018 DMA Response Rate Report, the average response rate for a postal campaign is 9 percent. If your house mailing list has 27,800 individual households, you may be able to meet your objective because of this average response rate.
A helpful hint: If your list isn’t extensive enough, you may have to augment it with a prospect list that the study estimates will achieve roughly a 5 percent response rate; however, doing so will cost you. But if you hit your profit targets, doesn’t it make the effort worthwhile?
What do you stand to lose if you don’t spend any money on advertising mailers?
When you add up all of the expenditures associated with your direct mail advertising, you could get nervous since it might look like a lot. But what will happen if you are unable to bring in extra consumers or revenue? Your firm would not be able to expand, and it is possible that your sales would even go down as a result of the loss of customers.
A consistent flow of consumers is essential to the health of a business, and a marketing plan that utilizes direct mail can be of assistance in this regard. Get in touch with the experts at Pasadena Image Printing as soon as possible to get started on your image printing needs.