MAIL ORDER BOOM

Mail order tops $390 billion in sales and continues to grow. Find a product that people want and join the boom

1. Unique merchandise
   
2. Well-defined product descriptions
   
3. Pictures or good graphics
   
4. Toll-free numbers for ordering
   
5. 24 hour telephone answering and ordering services
   
6. Speedy service
   
7. Prompt and safe delivery
   
8. A printed warranty
   
9. Customer communication
   

CREATE A MARKETING PLAN

How will you market your product? Where will you advertise?

You must develop a strategy to reach your target market. Sit down and write a detailed description of your target customer. How old are they? What do they do? What are their hobbies? Income? What publications do they read? How can your reach them? What about the Internet?

In researching your options, remember that you must advertise in the right publication read by your target group.

If you are selling a cosmetic or beauty item, research ads in women’s magazines and in magazines’s catering to health, exercise and beauty.

Call the advertising department and ask the magazine’s media department to send you a "media kit." They’ll send you the rate card along with specifications on how your ad should look in terms of sizing, colors and style.

Writing the ad copy could be the most important element in your campaign. It could make or break your business. The ad must drive customers to respond. It must grab their attention in just a few lines. You might want to include a photo or an illustration. Check with the magazines to see if they will assist you in creating the ad. If not, try contacting a local design school to see if a student will create and ad for you in exchange for them using your ad in their portfolio.

Include all the necessary information: price, shipping and handling charges, shipping time, address, whether or not you accept credit cards, checks or money orders. Test out your ad on friends and family members and see what they think. They might be able to clarify any ambiguities in the ad copy.

Experts say that to be successful you should be willing to commit 10 to 25% of your annual sales to advertising and promotion. Remember that classified ads are less expensive; display ads, however, are more eye catching and could produce greater results. You might want to start with a small ad and then if it produces results, use the revenue to try a larger display ad for that publication. Experts say that a response rate of even one-tenth of 1% of the readership is very good.

CONSIDER DIRECT MAIL

In addition to classified and display advertising, you might want to consider a direct mail campaign for your mail order business. To utilize direct mail solicitation, you’ll have to rent a mailing list--with names that are geared to your target audience--and then develop a package of information to send to your potential customers which includes a response form and reply envelope.

Mailing lists generally cost from $50 to $100 for about 1000 names. Resources for mailing lists include: Customized Mailing Lists, 1906 Field Road, Sarasota, FL 34231 or call 800-237-LIST; and American Consumer Lists, P.O. Box 27347, Omaha, NE 68127. The direct mail postcard company, Exec-Cards, can be reached by calling 800-435-2937. You can also rent a mailing list by contacting the Direct Marketing Association based in New York City. Call them at 212-768-7277 for more information on how you can become a member or find out more information on how you can obtain mailing lists.

Check the Internet for opportunities to compile your own mailing lists. Once you place an ad and receive replies, you’ll be able to create a mailing list from the individuals who have contacted you. This is a good list to use for your future products.

Most people have the impression that direct mail is cost prohibitive.We’re all familiar with flashy and fancy packages that come to our mail boxes to elicit business. But according to the United States Postal Service, direct mail does not have to be a high-cost sales tool.

The U.S. Postal Service has put together an excellent package called Direct Mail Delivers and you can contact your local post office. Their book, The Business Guide To Advertising With Direct Mail, contains just about everything you need to know about direct mail.

The book will walk you through the following steps:

• Developing the Direct Mail Package’s Message
  
• Targeting Your Audience
  
• Cost Considerations
  
• Direct Mail Formats and Approaches
  
• Testing Effectively
  
• Putting Your Direct Mail Package Together
  
• Printing Your Direct Mail Package
  
• Personalizing, Assembling and Mailing your direct mail package
  
• Working with the U.S. Postal Service
  
• Next-Step Resources
  

SELL YOUR PRODUCT TO OTHERS

If you have created a product that you want to sell to mail order companies, then put together a sales package consisting of a sample of the product and a press release on what it is, what it does, who the target market is and the costs and information on product delivery schedules/availability.

The Good Catalog Company is a booming mail order business founded in 1991. The Good Catalog Company offers opportunities to mail order business owners to place their products directly in the Good Catalog books.

The company shares all the production costs with the mail order entrepreneur and many entrepreneurs consider the company’s catalog to be an excellent incubator for their young firms. Revenues for Good Catalog Company have passed the $25 million mark, so they know their mail order beans.

If you have a product you’d like to showcase in one of the Good Catalog Company’s books, contact the Sales Department at 800-828-1810 or 503-654-7464 or fax to 503-786-3944. They’ll provide you with information on how you can develop a working relationship with them.

FILLING THE ORDERS

Fulfillment is a very important part of your business. You must deliver the goods on time to keep your customers happy. And you should examine each aspect of your mail order campaign to make sure you have fulfilled the promises made in the direct mail letter or advertisement.

Keep records of sales, checks, expenses, profits, advertising costs, postage, packaging materials and any costs incurred for private postal services such as a private mail box. You should investigate how to accept credit cards as this will greatly improve opportunities.

Call several banks in your area and see if you can strike up a deal to offer VISA or MasterCard. The Electronic Clearing House at 800-233-0406 is one of the many firms offering VISA and MasterCard capabilities to mail order firms. Contact the American Express Small Business Services to investigate their merchant card program, too.

Packages should arrive safe and in a timely fashion. It’s not just good business, it is the law.

LEGALITIES OF MAIL ORDER

Make sure you can legally sell the product you want to sell to your customers. Can it cross state lines? Does it comply with all of the potential regulatory requirements? Check with local officials to determine the legalities of products you manufacture yourself. If you are selling your very own salad dressing, contact health officials to determine labeling requirements in your state, for example.

There are some rules that apply to every mail order business:

The 30 Day Rule:
If you are unable to process all orders within thirty days, you advertisement must include a notice specifically stating that you will not fulfill orders until a specified amount of time such as "we ship in six to eight weeks." If you don’t state a timeframe, then you must ship the product or goods in 30 days.

Sales Tax:
Most states do collect sales tax. You’ll need to secure a resale tax certificate to avoid paying sales tax on wholesale purchases. You’ll then be required to collect sales tax from the final purchaser of your product, although you’re not required to collect sales tax from sales going to states other than the one in which you are located. Contact your state sales tax office for more information.

Mail Order Fraud:
There are a number of rules on fraudulent mail order claims and you should acquaint yourself with all of them. They prohibit such practices as using misleading testimonials and obtaining money under false pretenses.

The bottom line is: don’t lie and don’t mislead. If you’ve chosen your products carefully and you believe in their value, you won’t have to worry about a thing.

THE INTERNET

Millions of Americans and global citizens are buying goods over the Internet and you can certainly step into the fray with (a) your own website or (b) getting a company to market or publicize your product or (c) advertising on someone’s website.

A good book you might want to check out is Bloomberg Press’ Clicking Through: A Survival Guide for Bringing Your Company Online. It’s written by Jonathan Ezor, a new-media attorney specializing in e-commerce and Websites. Ezor is a corporate and new-media attorney at the Long Island, New York firm of Farrell Fritz. Ezor has also penned Producing Web Hits. His new book is $19.95.

According to Ezor, "This book provides real strategies for evaluating, reducing, and ultimately effectively managing the business risks of creating a Website, connecting employees to the Internet, and selling goods or services online. To be in a position to leverage these opportunities, you need a basic understanding of what’s really occurring when the button is pushed or the site is launched, along with a reasonable amount of strategic planning."

Ezor steers the reader through the process of building a Website: the ins and outs of contracting with technical and creative vendors to create and host the site, how and when to link to other sites, how to handle copyright and privacy issues, and what steps are necessary to protect ownership of content.

Pitney Bowes, Inc. is a $.42 billion global provider of informed mail and messaging management. They have created a wide variety of new products to help entrepreneurs catch the technology wave.

In order to better serve this dynamic market segment, Pitney Bowes recently launched Pitney Works, the company’s new brand focused on meeting the needs of today’s small business owners. The PitneyWorks offering includes a full suite of mail, messaging, marketing and financial products and services designed for the way small business really works.

"We know that when it comes to small business, one size does not fit all. In fact, small business knows that getting the job done means more than putting a stamp on an envelope. Their concerns are about attracting and retaining customers, paying the bills, getting the message out, building the business and more," said Elise DeBois, President, Pitney Bowes Small Business Solutions.

"The PitneyWorks brand was created to establish these valuable tools under one name that focuses solely on small business in a way that’s in tune with how they really work."

To help small businesses mail more efficiently, PitneyWorks offers the following tools:

--ClickStamp Online and ClickStamp Plus, two PC-based postage solutions that allow users to generate, address and print postage with a standard inkjet or laser printer. ClickStamp Online works for users with Internet access and enables postage to be printed directly onto envelopes while online. ClickStamp Plus allows customers to download postage via modem and store it in a vault that attaches to a PC, for use when needed.

--ValueShip for overnight mail or packages--a free, easy to use Internet tool that helps small businesses choose the most cost effective and timely way to ship a package or overnight letter.

--Personal Post digital postage meter for the 80% of mail volume that is not computer driven today. The digital meter works with all types of mail and offers "24/7" access to postage refills via a built-in phone modem.

--DirectNET is a one-stop service to conduct direct mail programs online. DirectNET provides customers with free template software to help them design mail pieces which can then be sent online to Pitney Bowes with a mailing list for printing, addressing and mailing anywhere in the U.S. within three business days.

--TargetProspects is a new Web-based service that allows businesses to select and download qualified customers from a pool of more than 11 million U.S. businesses and 95 million customers.

In addition, PitneyWorks’ financial solutions provide ways to help small businesses better manage their cash flow and finance critical needs, including postage. Among the solutions offered are:

--PitneyWorks Business Rewards VISA Card: Businesses can obtain a $25,000 line of credit for purchases, as well as cash accessed instantly worldwide at ATMs, banks or with personalized checks. There is the option of extended payment flexibility and competitive interest rates, and owners can redeem their reward miles on any airline with no black out dates.

--PitneyWorks Capital Line is a unique line of credit providing easy checkbook access to working capital, offering instant availability of up to $50,000 with a fixed rate of 13.9%.

--PitneyWorks Reserve Account enables business owners to improve their cash flow management by allowing them to earn free postage based on their pre-paid postage deposits, just as they would earn interest on their money in a bank.

--PitneyWorks Purchase Power is a service that allows customers to order now and pay later for postage and supplies.

Pelouze Scales, the leading scale brand in the United States and a product of Sunbeam Corporation, and E-Stamp Corporation, the Internet postage pioneer, have teamed up to develop the Pelouze Internet Postage Station. Comprised of a specially-designed Pelouze Internet Postage Scale and E-Stamp Internet Postage, the Pelouze PC Internet Postage Station makes it easy and convenient for small businesses to buy postage and mail packages.

E-Stamp’s Internet postage solution allows users to purchase, download and print postage from their PCs. Last August, E-Stamp received approval from the United States Postal Service for its Internet postage solution and began marketing its Internet postage solution nationally.

The integrated Pelouze scale simplifies package and parcel mailing by communicating package weight directly to E-Stamp’s software, enabling the software to calculate and print the exact amount of postage required.

"For more than 100 years Pelouze has been the leading brand in scales. With the Pelouze Internet Postage Station, we have an opportunity to extend our leadership by delivering a unique solution that meets our small business customers’ needs," said Faith C. Dash, Vice President and General Manager, Consumer and Professional Scales, Sunbeam Health Division.

"We selected E-Stamp as our partner because of E-Stamp’s commitment to understanding the SOHO market and delivering solutions that meet their needs."

The six-pound capacity Pelouze scale connects directly to E-Stamp’s electronic vault, allowing E-Stamp software to automatically calculate correct postage value for a package. The electronic vault is a small, highly secure device, about the size of a roll of stamps, that connects to the PC’s printer port, allowing the user to download postage from the Internet and store it in the vault. This allows customers to print postage that has been downloaded any time, whether or not they remain connected to the Internet.

For more information about E-Stamp, visit the web site at www.e-stamp.com.