A DIRECT MAIL COST MODEL


Following is an estimate matrix for a typical direct mail package at four quantity levels. This is based on an actual printer's quote.


Component                        5K      10K      25K    100K

Outer env., #10, 2C:        36/M        33/M      27/M    18/M

Letter, 8«x11, 2C/1C:          99          55          33          19

Brochure, 11x17, 4C:        438          235        118        60

Order card, 2C:                  66          36          18        10     
   
#9 BRE, 1C:                      26            24          22        15

___________________________________________________________
Printing subtotal:        665/M      383/M    218/M  122/M 

Total, printing:            $3325      $3830    $5450  $12,220

          (Note the cost of printing 5K packages vs. 10K)
___________________________________________________________

Lists*                              90/M      90/M      90/M      90/M

Lettershop (labeling,
inserting, bagging,
mailing):                          50 /M      45/M      40/M      35/M

Postage, 3rd Class
(barcode, 5-digit sort)  166/M      166/M    166/M    166/M
$0.16.6**                 
_________________________________________________________________
Subtotals, per M:        306/M      301/M    296/M    291/M

Subtotals, lists
& mailing:                  $1530      $3010      $7525  $29,100
_________________________________________________________________
Total Costs***            $4855      $6840      $12975  $41,320

* Lists vary from $50/M to $120/M -  Special selects add $5 to $15/M
*
* Postal qualification is critical to costs. - An unqualified list could cost
    22.6 cents ea. (note: this is an old postage rate, but consistant with this model)
*** This is your incremental cost. Creative is a fixed, one-time cost.

NOTE: For smaller packages (e.g. an 8«x11 letter and order form w/ #9 BRE in a #10 envelope), you can extrapolate the appropriate numbers. Lettershop may be slightly less, but not significantly so.

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