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Direct Mail Calculator


Instructions:

    1. Input the cost components associated with a single direct mail campaign
      (our example  assumes 1,000 solicitations).
    2. Input the number of prospects that your advertising campaign yields.
    3. Click the Calculate button.


Cost Components

Material Development:     Material costs will vary significantly depending on whether you're sending postcards or product brochures and catalogs.  Don't forget to including the cost of design, copy, graphics and photography, printing, inserts, and the list.  Figure a week for design and copywriting at a rate of $85.  A typical response rate for a mailing is 1.5%.  So to get an amount of inquiries that would rival in-house lead generation, you need a mailing of 80,000 records. A list of that size for mailing will cost about $0.10 per record.
Management:   Include the time/cost of planning and managing the mailing.  Allow some time to clean and organize your database.
Mailing Cost:     Be sure to include folding, stuffing, and sealing in addition to postage.
Follow-up:     We allocate about 15 minutes of our sales rep's time per lead to make a phone call and forward a letter and brochure.  On an 80,000 piece mailing, expect a response rate of around 1.5%, or 1,200 businesses.  Don't forget the sales material and telephone expenses.


Campaign Yield

Prospects:     Businesses classified as eligible buyers who have a use for you products and services.  Let's assume 90% or the responders.