Is Direct Mail Dead?

I don't think so, but it depends on who you ask. I received a direct mail piece from a "Famous" shoe retailer and it looks like they are still embracing direct mail. The fascinating thing about the piece they sent was they included the offer ($10 off a purchase of $50 or more) along with a map and directions from our front door to theirs.

This new piece of direct mail must use the new Variable Data Printing (VDP) technology available through digital printing companies. They can personalize each piece of direct mail by including the map, but also include a specific greeting using the recipient's name. Imagine your next direct mail campaign that actually gave directions to your store and included a "Dear _____," message.

Variable Data Printing is here to stay. If you are a retailer interested in pursuing direct mail via VDP, please contact us at www.miraretail.com and we will point you in the right direction.

Cutting Costs

If you could trim your costs by a percent, what would that do to your bottom line? Assuming all things remain equal, I've run a quick proforma. Let's assume a retailer achieves $200,000 in annual sales and has $180,000 in total expenses leaving a net profit of $20,000, or 10% net profit margin.

Taking our $180,000 in expenses and trimming them by 1%, or $1,800, total expenses are now $178,200. Total net profit is now $21,800 assuming $200,000 in sales. By saving $150 per month, profitability has increased by a percentage point. What ways can you save money?

Here are five suggestions:

1. Check with your merchant services account. Are they giving you the best deal possible?
2. Talk with your suppliers. Can they offer a better discount, or more favorable terms for paying invoices faster?
3. Are you paying recurring fees for services at your business (i.e. copier service fees)? If so, pinpoint which ones and determine if you can do without the service.
4. Rent. Are you in a position to re-negotiate your lease?
5. Get competitive quotes for everything you buy.

If you don't have the time or energy to do these things on your own, contact Mira, Inc. at 303-242-8930, or visit our contact us through our website http://www.miraretail.com