There's no two ways about it: printing and mailing costs are going up in 2008.

    But that doesn't mean your business has to cut back on mailings or take it on the chin. I'm going to tell you a few cost areas to watch out for, and then make a few a suggestions how you can offset—or even beat—the increases.

    The first increase to prepare for is the rising cost of printing. The increases that began in the second half of 2007 will continue this year—most likely at a rate exceeding that of inflation.

     Paper costs are a huge chunk of this printing increase, particularly if you use coated papers. Generally speaking, expect to see increases as high as 25% for coated paper and 20% for uncoated paper.

    There are a number of reasons for the increase in printing costs. Supply and demand comes into play since many paper manufacturers have closed mills, plus transportation and fuel costs have gone up. There's also talk of ink prices increasing.

     The other increase to watch for is a rise in postal rates.

    Rates are increasing for First-Class and Standard postage on May 12 of this year (click here to see the new rate schedule).

    However, it might not be the only increase this year. With the lowering of interest rates and rampant government spending, inflation could creep up 5–7% in 2008.

    Since last year's rate increase legislation tied postage increases to the inflation rate, that leaves the door open for another increase later in the year.

    While this economic forecast seems pretty dour, it's not the first time the direct mail industry has had to deal with higher costs...and we've gotten through it before.

    It simply means it's time to tighten the belt and mail smarter. In fact, in the past, belt-tightening and smarter mailings have even increased response rates over more robust economic periods.

     Here are 5 ways you can offset (or even overcome) your printing and mailing costs in 2008:

1. Use quality mailing lists. The worst thing marketers can do is randomly reduce the number of pieces mailed. This will lower new client acquisition, which will in turn lower your sales, future repeat business and upsell/cross-sell opportunities, eventually leading to potential profit loss.
   
   The key to mailing smarter is a more focused mailing by using better lists. By using "lifestyle" lists with specific, targeted audiences, you can make sure your mailings are going only to proven direct mail purchasers in your product or service's key buying demographics.
   
   For example, our sister company, InfoMat, has a list of 250k subscribers to an alternative health newsletter with an average age of 55 years old and a proven history of direct mail purchases (click here to see the specific demographics in the datacard).
   
   And for the financial sector, InfoMat has a new list of business entrepreneurs from a leading radio broadcaster who have a history of spending more than $75.00 a year on investor resources (click here to see the datacard).
   
   In both cases, the lists are focused to a very specific audience with specific needs and a history of buying through direct mail so your mailings reach those most likely to buy.



2. Change up your formats. Try reducing page counts or improving page density. For example if you send out catalogs, try to place one additional product on each page.
   
   To reduce mailing costs, experiment with lighter-weight paper. It's time to get creative with your formats, like trying slim jims instead of bulky catalogs or mailing a piece with fewer pages, then driving your prospect to your Internet site for a more extensive product mix.



3. Do some thorough testing. When costs rise, it becomes all the more important to test variables. Test everything: your format, your offer and your copy direction.
   
   The best way to avoid throwing money away is to address the effectiveness of what you're mailing.



4. Look for savings on postage. If you plan ahead, there are many ways to beat the postage increase. Both co-mailing and entry at only sectional center facilities can produce huge postage savings.
   
   You could also try playing around with the size and shape of your pieces. For example, folding larger flats into a 6 x 9.5 envelope will save you 39 cents per piece. That adds up quickly.



5. Plan your paper purchases. There are a couple ways you can plan ahead and save big on paper. The first is to buy in bulk. If you know you'll be mailing a million pieces in the spring and another million in the fall, save money by buying enough paper for two million pieces.
   
   Another money saving method is to buy directly from the paper manufacturer.

    Unfortunately, there's not much we can do in the short term to lower the overall costs of printing and mailing. However, better planning can get smart marketers through the tough times.

    And as side note, next month in our sister publication, Direct Response, we're going to take a hard look at ways you can not only survive tough times and economic slowdowns...but even thrive.

    If you're not currently a subscriber to Direct Response, click here to subscribe so you're always one step ahead of your competition.

    Also, if you'd like more information on renting successful, targeted mailing lists, call Tina at InfoMat at 310-212-5944 x150 or email her at listmgr@infomatbiz.com.

    Studies have shown that an effective strategy for making an emotional connection with your prospect is by using a spokesperson in your copy. Now, there's a powerful way to take that concept to the next level: a microsite video spokesperson.

    If you haven't seen a video spokesperson yet, prepare to be surprised. When your prospect lands on your microsite, a video walk-on immediately addresses your prospect. To see an example, click here to go to my agency's homepage.

Click above to see a video spokesperson in action

    If you're a regular reader of Direct Marketing Update, you know a strong offer always includes valuable premiums for your prospect like special reports and white papers.

    However, your premiums are worthless if you don't take the time to create mouthwatering headlines and compelling sales copy touting your premiums.

     Online or in print, if you've crafted your body copy correctly, by the time you begin revealing your premiums, your prospect should already be hungry for your product or service.

    Your premium copy headlines and copy should be your knockout punch.

     The way you describe the contents of your premiums should make your prospect completely unable to walk away from your offer. Your prospects should feel you're simply offering too much value for them to walk away.

    How do you accomplish this? Two ways:

     Your premium title. Your premium should have an eye-grabbing, evocative title like "7 Tax Breaks the IRS Doesn't Want You to Know About" or "5 Business Secrets That Turn Small Business Into International Success Stories."

    You can also go negative like "9 Fatal Mistakes Small Businesses Should Avoid" or "Prescription Drug Health Risks the Media Isn't Telling You." Either way you're creating a dire need for the information inside the report.

    Your content copy. The description of the premium should be irresistible. Tease the information inside so your prospects simply must have them. Don't tell them everything and don't be gentle. Make sure your prospects feel what's inside will absolutely change their life.

    For example, if your report is about natural heart-healthy treatments, your copy might be, "In this groundbreaking Special Report, you'll discover breakthrough natural cures that traditional medicine has ignored like...

• The foolproof way to lower your cholesterol in 14 days



• The one superfood guaranteed to ease high blood pressure



• What kinds of exercise will help your heart—and which kinds could be deadly

    More than 70,000 different lists are being rented out currently in the United States alone, generating massive income for such companies as American Express, Business Week, Fortune, Kiplinger, Lillian Vernon and so on.

    If you'd like to broaden your income possibilities, list rental income could be a source of untapped revenue for your business. Here are some considerations in renting out your list...

How valuable are your names?

    Are your names direct-response generated...or compiled? Direct response names are names of people who have responded to an offer in the mail, on the Internet or from email, from an infomercial or from an ad in a publication. A compiled list is made up of names taken from a source such as a directory or "harvested" on the Internet.

    Lists of actual buyers are much more valuable than lists of inquirers. Both are more valuable than a compiled list. In email, a harvested list is at the bottom of the pile.

How should you begin?

    List owners who opt for self-management often find their lists go without proper promotion...they don't have the contacts, the reputation or the facilities.

    You can most efficiently and easily generate rental income from your list by hiring a company that specializes in list promotion. Their list manager advertises the availability of your list and aggressively promotes rentals (1) in key direct mail trade publications, (2) among companies looking for reliable third-party email lists (3) among list brokers, advertising agencies and list users. Some list companies also offer specialized promotions.

     The company receives and handles all rental inquiries, so that you won't be bothered with unproductive queries. In addition, they handle all follow-up, scheduling, billing and data reporting.

     Your list manager will send you a sample mailing piece or email from the prospective renter for your approval. You may not want to rent to a competitor, or to a company whose product or service you don't like. That is your option. Most companies will only rent their email lists to established companies who follow specific CAN-SPAM regulations, for example.

    Once the rental is approved, the renter of the list must agree to the price, the assigned mail date and the fact that the list is rented (this simply means that all rentals are made on a one-time use basis).

    You pay out commissions of about 10% to the list manager and about 20% to the list broker who generated the sale. Thus, you keep approximately 70%.

When should you start?

    If you have several thousand names, start now. Make a decision on a reliable list management company and start generating that hidden source of income. Your names are safe...you have complete control over who uses your list...and the time involved is minimal.

    If you'd like to investigate your profit possibilities for list management, or just need some information about the process, call Steve at InfoMat at 310-212-5944. He can walk you through the list management process and give you some great business-building ideas.

    This week in Testing Corner we're going to take a look at which is the best method to capture email addresses on your microsite or ezine: pop-ups or requests embedded in copy.

     TEST: An ezine tested two methods of email capture over a six-week period. During the first three weeks, copy was embedded into the sales copy. It read:

    For more information on how you can invest profitably—and safely—in the tech sector, enter your email below and we'll rush you a FREE copy of our Special Report "10 Keys to Safe Investing in Breakthrough Tech Stocks."

     Then, underneath was an area to enter an email address and a submit button.

    Then over the following three weeks, the ezine used a pop-up. As the prospect left the page it appeared and read:

    Wait! Before you go, enter your email below so we can rush you a copy of our Special Report "10 Keys to Safe Investing in Breakthrough Tech Stocks." This FREE report will tell you how to invest profitably—and safely—in the tech sector.

    There were two possibilities at work here. Would the pop-up stand out more and gain better response? Or would pop-up annoyance mixed with pop-up blockers kill response?

    Would you guess that response from the pop-up was:

     A) One-third lower

    B) About the same

    C) Almost double

     RESULT: If you answered almost double, you're right!

    Embedding the email capture dialogue in the window produced 123 captures over three weeks. But adding a pop-up window—despite many browsers having pop-up blockers—increased captures to 232 people...190% higher.

    Why do you think the pop-up did better? I'd love to know your opinions. Email me at craig@cdmginc.com and let me know what you think. I'll print some of your responses in the next issue and tell you why I think the pop-up worked better.

ACTION ITEMS

1. Are you up to date on the newest trends in direct marketing such as podcasts, viral video, pay-per-click ads and exciting mailing formats?

Subscribe to the industry-leading digest Direct Response and keep current. Please call us now at 310-212-5727 and tell our representative you'd like to subscribe to Direct Response.

2. Examine the results of your last direct mail campaign. Are you experiencing a loss of leads or sales? I can help. Contact me at craig@cdmginc.com.

3. Click here to read the insightful article on the proven, tested, V.I.V.A.™ direct marketing system. It's a must-read article for every direct marketer and business owner looking to boost their response rates.

4. Click the Forward to a Friend button in the upper-right corner to pass on this Direct Marketing Update to interested friends and business associates.

    That's it for this week's edition of Direct Marketing Update. I hope that you'll keep an eye open for my next issue, as I have so much more exciting direct marketing information to share with you.



Craig A. Huey
President
Creative Direct Marketing Group
email: craig@cdmginc.com
phone: 310-212-5727
www.cdmginc.com