Simple way to frame a direct mail budget profile 

First, determine how much you are willing to invest in communications designed to increase awareness of your agency and services, and ultimately lead to a new customer account.  $5?  $4?  $3?  $2?  Let’s say you choose $3. 

Second, determine how many prospects you can afford to reach.  500 @ $1500 total? 1000 @ $3000 total?  You choose 500. 

Third, determine how many times you want to reach each target prospect this year. Let’s say four times during 2009. 

Now divide your per prospect investment by four---$3 divided by 4 = $.75.  So each mailing, including postage, must average seventy-five cents. 

What type of mailing can you buy for $.75 per unit?   If you handle mailings inside, postage will cost 42 cents leaving 33 cents for the mailer itself.  If you use a mail house, you can save about 15 cents on postage and handling leaving 48 cents for production of the mail package. 

TIP:  Mail the SAME mailing to the SAME prospects four times.  You will be able to print 2000 mail pieces at a considerable saving over 500 of four different mailers.  Best of all, the repetition will help boost your response rate.