Mail Order Math Made Easy

We have been active in Mail Order selling since the early 1980's and have learned the hard way how to crunch the numbers to insure a profitable sales campaign. I used my math and statistics background to figure all this out and use it for our own sales offerings. The same statistics that can accurately predict a political winner minutes after the polls close can be very helpful to business also. What used to take a long time can now be figured out accurately in seconds. Let me show you why I developed this software. In talking with other marketers it is amazing how often I saw someone trying to make a profit selling a $25 product with a $35 cost of sale. They really never bothered to try and figure the cost of the sale and their profits (or lack thereof) showed it. They were amazed when I showed them how to calculate the cost of the sale and how to set the best price based on the response figures. You can now benefit from all this work and crunch your mail order numbers like the pros. These programs is written in msExcel and will help you conduct price testing to set the optimum sales price for your product, figure the break even sales units, figure the cost of each sale, project future profits, set sample size for testing, figure mark ups and mark downs, predict TV sales volume from a given advertising budget, figure one in X amount of viewers to break even and much much more. email, order, direct, response, set, optimum, price, break, even, cost, sale, projections, profit, maximize, maximum, formulas, math, internet, test, testing, analysis, marketing, TV, marketing, statistics, product, evaluation, improve, profits, make, money, analyze, forecast, formulas, pro-forma, increase, software, program

All the above will be at your finger tips with these great programs and help avoid some of the costly mail order mistakes so often made. I once talked with a man who was going to sell a product for a retail price of $35.00. The product cost him only $10..00 to get to his place of business including shipping. So his profit was $25.00. He had a mailing piece developed that he was going to send to a mailing list he rented from a list broker. He was going to send out 1,000 pieces initially at a cost of $.45 each. He had heard that he could expect a 3% response, so he figured he'd sell about 30 units and gross about $1,050.00. His product cost was $300.00 and his mailing cost was $450.00 leaving him a profit of $300.00, or so he thought. This example is a pipe dream. First of all any mailing for only $.45 would not entice people to send their hard earned cash in to buy it. Second, expecting a response of 3% is dreaming; .5% to 1% is more realistic. Third there is not sufficient mark up in this example to be profitable in direct response marketing. A good mark up of cost should be 5 to 10 times and this is only 3.5. Using our MailOrder Math program we calculate the cost of sale at .5% response to be $90.00 and at 1% response the cost of the sale is $45.00. It is tough to make a profit selling something for $35.00 with a cost of sale of $45.00 plus another $10.00 in product cost. At best this man could expect to lose $20.00 for each of his expected sales. In reality, he lost the cost of his mailing, $450.00 and sold only one unit. This whole frustrating and costly lesson could have been avoided with the use of our MailOrder Math software.

Using our MailOrder Math software I did some price testing for him. Normally products are price sensitive or as the economist say, price elasticity. This means that the higher the price the fewer units you will sell and the lower the price the more units you will sell. You goal is to maximize the total revenue of the number of units sold times the selling price. This is the optimum price and even if you sold more units at a lower price, the total revenue would not be as great as selling at the optimum price. The optimum price, as dictated by the market, turned out to be $79.47. He began marketing his product for $79.50.

He began marketing his product on the internet instead of through direct mail. He spent the same $450.00

advertising his web site and his cost of sale fell from $45.00 per sale to $4.50. He initially sold about 100 units That's 100 times $69.50 ($79.50 - $10.00 product cost) = $6,950.00 minus the advertising cost of $450.00 leaves a net profit of $6,500.00. This is quite a pleasant contrast from his initial mailing disaster. He is now importing products from China and is really lowering his product cost.

Our MailOrder Math software also addresses crunching the numbers for TV Infomercials. Typically marketers count on their gross sales from a successful campaign being 5 to 8.5 times their TV ad cost. Our MailOrder Math software calculates the break even sales numbers, projects future profits etc. with different TV ad rates which you plug in. You will know that a successful program will produce 1 sale for every XXX viewers. You will know your break even to be 1 sale for every YYY viewers. You will know the total man hours needed to fill the orders also. Everything about your deal from product in to product out will be calculated for you so you will always know how your campaign will go. These assumptions are based on solid mathematical and statistical formulas and not blue sky musings; these are the facts.

Put More Of This In Your Pocket You can easily plug in your product cost and the mark up you desire and it will give you the sales price. Or you can plug in the cost and the market price and it will provide you with the mark up percent. The Price Testing section has a statistics function where you put in your test data and how close you want the results to be and it gives you the sample size. So lets say you are going to test your product at $40.00 and $50.00 and you want the results to be 95% accurate to be within $2.00 the software will crunch the numbers and tell you how large your sample size should be; 96 in this case. Or you can take it another way and tell the software that you had 50 sales at $40.00 and $50.00 and it will tell you that the optimum price would be within $2.77. This is great information in gathering data for a price test. Once you gather the number of sales $40.00 and the number of sales at $50.00, the software will calculate your optimum price to maximize total revenues and tell you how many units you will sell at that price and what your total revenue will be. This example shows that of our 96 sales, 60 were at $40.00 and 36 were at $50.00. We plug in these variables and MailOrder Math tells us that our optimum price is $32.50 and we would have sold 234 units at this price for a total gross sales amount of $7,605.00. Remember that with price elasticity the lower the price the more units you will generally sell but you will not increase the total gross sales amount if you lower the price below the optimum sales price. That was easy wasn't it? Put My Knowledge To Work For You! booksJPEG.jpg (3638 bytes)

I won't demonstrate all the capabilities of this amazing software but I think you get the idea. If you are interested in owning this software and putting the science of mathematics and statistics behind your direct response offerings. click on the credit card logos below. We accept Visa, MasterCard, Debit Card, Discover, American Express etc.

What You Will Get Upon payment receipt, we will email all the MailOrder Math programs (Written in msExcel) and a complete Manual for operation (Written in msWord) to you. These programs will cover all the items listed in RED above. The manual explains in detail all the operations the software does and how to enter the data etc. The software crunches all the numbers so you have very accurate projections for your business. Normally, the package is sent to you the same day your payment is processed.

To Order: We accept Credit Cards (Visa, MasterCard, Discover, American Express, Debit Cards) through PayPal. PayPal is a great way to make and receive payments online. PayPal is totally safe and FREE for you to use. They even pay you $5.00 to sign up, if you are not a current PayPal member. Be sure you tell us your name, address and that you are ordering MailOrder Math and give us your email address for return shipment. You will need this information when using PayPal. The price for MailOrder Math is only $39.95 NOW $19.95 Try to get this valuable information from a consultant and you will easily pay $500 to $1,000 per deal you bring to them to analyze. Software shipments are usually made the same day payment is received. Click on the Add To Cart to use your credit card and order MailOrder Math.

Click On The Add To Cart To Order $39.95 NOW $19.95

Upon receipt of payment your complete package will be emailed to you for fast easy download and save any Shipping & Handling fees. If you choose to get this material sent to you on disk via US Mail, please include $7.00 to cover additional shipping and handling.

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