What Direct Mail Response Rate Do You Need for Your Campaign to Break Even?

June 12th, 2009 by Bob Bly

“Break-even” is the response rate a direct mail must generate to produce sales revenues equal to the cost of the mailing.

But what is that response rate for your mailing? It depends on 5 factors:

* Postage.
* Printing.
* Letter shop charges.
* List rental cost.
* Price of product being sold.
* Cost of goods for product.

You can input these factors here and have my free DM ROI software instantly calculate the response rate you need to achieve break-even:

www.dmresponsecalculator.com

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This entry was posted on Friday, June 12th, 2009 at 8:17 am and is filed under Direct Marketing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

13 responses about “What Direct Mail Response Rate Do You Need for Your Campaign to Break Even?”

  1. Direct Mail » What Direct Mail Response Rate Do You Need for Your Campaign to … said:

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  2. Jim Logan said:

    Great idea! I wish I would have thought of it!

    I’ve done the math more times than I can remember…but you made the calculator:)

    I’ll likely use it often.

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  4. Matt Hedges said:

    The QUALITY of the list you are renting is more important than the price.
    Testing of lists is required.

  5. Ka??thane Arçelik Servisi said:

    really nice idea..

  6. Direct Mail said:

    Nice Tip! No doubt break even is very important to understand the cost of mailing list. Direct Mail is a strategic tool that can be used to achieve almost any business objective. You can start your direct mail program with something as simple as a letter to your best customers. 

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  8. Brian Berg said:

    Direct Mail Response Break-Even
    Calculating your DM response break-even point is important to all mailers….especially new mailers who may not yet understand the dynamics of a successful direct mail campaign. We offer a simple widget to use to figure the percentage response needed to “break-even” on their DM investment. You can also add the widget to your website or blog for free. Go to http://www.bbdirect.com/direct-mail-response-break-even-calculator.php
    All the best.
    Brian Berg / BB Direct

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