THE TRUTH ABOUT MAIL ORDER
Does It Really Work?
Over the years one of the most frequently offered business
opportunities has been mail order in one of its many forms.
And, there are certainly no shortages of claims as to its
profitability - or books on the subject for that matter!
All this is sure to lead you to stop and think 'But does it
really work?' And feel it would be nice to know the facts on
the business. Not information from the source - whose own
interests are best served by you starting! That's just what
this book is.
From the start we can certainly confirm that mail order does
indeed live up to its expectations - even exceeding them in
some cases! It can be a truly simple home business - with an
absolute minimum of outlay. And it can produce profits
running into several hundred percent!
The rewards are certainly up for grabs. But, as with any
other business they don't come automatically. They need to
be earned, and be worked on. But it is a business that
offers the chance, where many others never can.
Read on and we will reveal some of the secrets of mail order
- and some of the tips you need to apply to realise this
exciting potential to the full.
Why People Buy Mail Order
There is no doubt that people do buy by mail order - and in
vast quantities. The good mail order business can have a
much higher customer turnover than one of the busiest shops.
But, just why should this be? Consider why people buy by mail
order - and always apply those reasons throughout your
business.
Mail order buying is certainly 'easy' - an important reason
for any business success. So, be sure always to keep buying
easy. It's far more convenient to post off your order -
rather than trek round the shops!
More often than not, mail order offers far greater choice
than retail selling. It can be successful supplying even the
most specialist demands.
You will usually find that mail order products are cheaper
than similar shop bought products. The mail order operator
must always try for this - but it's a great reason for the
customer too! Special offers are popular.
A very personal and individual service - that should be mail
order. You can buy things you won't buy in a shop. And,
there's the opportunity to return them without problems.
An important reason for the success of mail order is
excitement. Yes, it's a major reason. Waiting for that
special order to arrive can be a big reason for sending for
it in the first place! This should never be under estimated
as a reason for mail order use.
You may well be able to think of other reasons why mail order
works. Whatever they are do remember you should make use of
them in your business. Exploit every single advantage
possible - or mail order may disappoint.
Building Mail Order Profits
It is also interesting to consider why mail order is
desirable from a business point of view. After all, it seems
a more complex business that just selling goods in a shop.
Why is it worth selling through the post?
One major initial advantage is that mail order has very
little overheads. You can operate quite a large business
from home. And, you don't need equipment - or staff which
can be very expensive. It's the ultimate cut cost business.
Indeed, it needs to be.
Mail order operators also tend to build their profits by
selling goods in volume. This usually means specialising in
a limited range - unlike a shop that sells a full range.
Restrict what you sell so you can obtain at more desirable
prices than a low volume shop.
One of the most obvious reasons for mail order profitability
is that the goods sold are selected for their huge profit
margins. For best chances of success this needs to be as
much as 200-300%! Unlike a shop, which needs 15-20% to
succeed. So, do realise that mail order profits hold no
special 'mystery'. They are made because only products with
very high margins are selected - not because of any major
formula!
Perhaps the major reason for mail order profits is that the
trader is so dependent on repeat trade. For example, once
the customer has been obtained the trader hopes to make more
and more sales to that same person over a period of time.
Profits are made by a satisfied customer buying again and
again. Not by a string of new customers. If your mail order
business does not exploit repeat sales it just cannot thrive.
It is so important to realise that there are definite reasons
for building mail order fortunes. The truth is that these
fortunes are possible - but only if you follow certain
accepted procedures. Mail order success does not come by
chance or 'just doing it'.
Once you've grasped the basics then 2 further points are
vital to success. These are deciding what to sell - and then
selling it correctly. Both parts of a business must be done
correctly for a chance at success. Let's now consider the
truth on some of these points!
What's Best to Sell?
Those who tell you a mail order business can be successful
selling virtually anything are wrong. Quite simply, for the
best chance of success a mail order trader just sell certain
types of goods. Ideally, choose things that are already sold
by mail order, and have been for a long time - since they are
without doubt winners!
There are certain set characteristics a mail order product
must have to succeed. Consider this list:
- High profit margin essential.
- Must look/sound exciting - and be able to be advertised in
an exciting way.
- Should be something that appeals to a very wide customer
group.
- Fairly light, small and portable.
- Doesn't require any back-up.
- Should ideally have potential for complementary sales.
- Should be 'used up' and require re-ordering if at all
possible.
- Has absolute minimum chance to give complaint.
- Ideally not available easily, if at all, in shops.
- Exclusive in some way.
- Proven - or if new based on something proven.
- Reasonably priced - and cheaper than any other source.
You may be able to think of other qualities that would make a
good product for selling by post. And, although no single
product will meet all the requirements it is a question of
the more the better!
When considering specific products to sell by mail order you
must think in terms of the products that are already
successfully sold this way. New ideas might work - but they
could just 'flop'. To be sure of profit stick to the old
faithfuls. Just because you sell a product by mail order
doesn't mean it is automatically lucrative!
That successful mail order product should be exciting to buy
by post. Make it something everybody wants. Make it a
better idea to buy mail order than buy from shops. And, not
least, make it something you can easily buy in and handle.
That makes a big difference to your products - and your
profits!
You will no doubt be able to think of some existing mail
order 'successes' - so why not copy them. Some of the most
popular are:
Clothes - Books - Kitchen Items - Gadgets/Gifts - Small
Furniture - Gifts - Office Equipment - Garden Products -
Hobby Items - Services, e.g. Printing - Household Goods.
Of course, there are many others! But it's important to
realise it is not 'anything' that sells profitably by mail
order. Only certain things sell well.
When you have decided what to sell it is vital to arrange a
reliable supply. This way you don't need large
capital-eating stocks. You must get a good supply at a
really cut price. Bulk orders are a must. Wholesale sources
are rarely suitable. Look at the cheap sources - like
importing of buying direct from the manufacturer.
For a good mail order business you've got to take some
stocks. Don't be tempted by the idealistic thought of
'dropship' selling.
If, once tried, it doesn't sell successfully then forget it.
Be ruthless!
How to Advertise
A really crucial part of mail order selling is advertising.
It is perhaps the most difficult part to get right. Having
said this it doesn't need to be expensive. And, getting it
right can lead to a runaway success - even for the newcomer.
Don't expect just to 'advertise and sit back' though!
An important matter is deciding where to advertise. The
answer to this is where mail order traders already advertise
- don't try anywhere new. Both newspapers and magazines can
be equally good. Make sure they are national publications
though. Local advertising will not work.
The publication should be one more than likely to be read by
buyers of your product. And, you must advertise in the
appropriate sections. A continuous plan of advertising is
necessary - so allow the capital.
Evidence shows that classified ads. are by far the most
economic and successful for most mail order products. So,
take some time to devise the very best you can. Don't think
large display ads are always better!
An important principle of mail order advertising is
'testing'. This means that you must keep trying, and
improving, difficult wordings until you find one that gets
the very best result. Place a 'key' (code number) in each
ad, so you know which works best. Never believe that you can
get a best selling ad first time round. All the best are the
results of many weeks of testing and improving. Once you
have found that illusive ad though you should stick with it -
it could earn thousands!
New mail order traders usually underestimate the importance
of advertising - and allow too little capital for it. The
truth is that it can sometimes take more money in advertising
than the cost of your products. Bear this in mind when
stocking up!
There is nothing really good about writing a good ad - almost
anyone can do it. But you should note that a successful ad
is usually the work of careful work, over time - not
necessarily skill, and never chance!
An interesting way of selling by mail order is selling by
mailshot. That is, you mail out attractive circulars to
potential buyers - the names and addresses of which can be
hired from 'list brokers'. This can be very successful.
Though, ensure your product has sufficient profit to stand
the cost. It's also not quite as easy for newcomers as the
established mail order trader.
Once your advertising starts working then you can sit back
and bank the cash - just like all the promises you hear!
Though always keep improving your ads. Despatching orders is
the easy part. But, it must all be done with care. Above
all, keep careful records of all your sales - and your
customers. Based on that, mail order can expand from
strength to strength!
Something You Must Know!
It is true that you can make a great deal of money from mail
order selling of just a simple product. But, as with any
good business, it is never as simple as that!
As we have already said success in the business does depend
on repeat custom. You can never thrive on all new customers.
Once you have sold one item to a customer you must try to
keep selling to them. The main result of this is that you
must gradually expand your range. And, you must add only
complementary products - products the initial buyer is likely
to be interested in. This might be an awkward, but
essential, governor on your business.
And remember, if you are to get repeat sales you must satisfy
customers. They must get a good service and good value. You
won't get away with a poor deal!
One final tip is that you must always make full use of past
customers by mailing news of new products to them. They are
much more likely to buy than 'unknowns'. You must make use
of them to succeed financially. There is a lucrative
spin-off of this in that you will need to compile a mailing
list of past customers. This can then be hired out to other
mail order operators for considerable extra income.
Just like a shop a mail order business depends on its
'clientele' - Cultivate your customers!
The Final Word
It would be possible to go on for ever giving tips about mail
order. And, if you're seriously interested there are many
more sources of advice on the 'nuts and bolts'. This guide
has just tried to show you some of the ins and outs you
rarely find elsewhere!
With confidence, we can say that mail order can be a hugely
successful business. It almost certainly will do well - but
you can't take it for granted. There's no 'magic' in mail
order - but it's certainly very sound!