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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
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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)
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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**
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Subtotals, per M: 306/M 301/M 296/M 291/M
Subtotals, lists
& mailing: $1530 $3010 $7525 $29,100
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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.
Go to next page of this article -" An Actual Example"
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