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:
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.
June 12th, 2009 at 3:09 pm
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June 12th, 2009 at 6:07 pm
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.
June 22nd, 2009 at 11:21 am
[...] What Direct Mail Response Rate Do You Need for Your Campaign to … [...]
January 20th, 2010 at 11:33 pm
The QUALITY of the list you are renting is more important than the price.
Testing of lists is required.
June 10th, 2010 at 8:22 am
really nice idea..
November 16th, 2010 at 4:26 am
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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November 4th, 2011 at 12:35 pm
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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