DIRECT MARKETING ANALYSIS
(The direct marketing analysis worksheet is used to analyze the actual profit margins of your products or
services after factoring in all direct marketing expenses associated with promoting or advertising your business.
Once this worksheet is complete, the information can be used to calculate acquisition costs and actual profit
margins for each project or customer. This worksheet is also used to calculate the break-even point of your
direct marketing efforts to analyze how effective each tool or tactic is for your business.
Direct marketing efforts include mailers, coupons, circulars, newsletters, letters to potential customers, or any
form of direct or targeted marketing. Use one worksheet for each direct-marketing campaign to effectively gauge
the efficiency of both cost and reach, as well as the return on investment (ROI).
If you know the actual breakdown of each campaign, enter it in the tables below. If you only know total overhead
costs and not the itemized breakdown, skip the details and just enter the total figure at the bottom of each table.
*These tables are computed using excel sheet formulas so you should be able to see your breakeven points once
you have entered all the necessary information.)
Promotion: Example: LAUNCH SPECIAL - 50% OFF Promotion Period: Aug 15 -Sept 14,2011
GROSS MARGIN - PER UNIT DIRECT MAIL COST - PER UNIT
Selling Price $ 12.00 Personalized Letters $ 2.00
Cost of Goods/Services Sold Mailers
Shipping & Handling Circulars $ 1.00
Credit Card Processing Fee Newsletters
Commissions/Referral Fees Printing Cost
Uncollectable/Bad Debt Postage/Mailing Cost
Returns or Exchanges $ 6.00 Database Acquisition Cost
Total Cost - Per Unit $ 6.00 Production Cost (Design, etc.)
GROSS MARGIN - PER UNIT $ 6.00 TOTAL COST - PER UNIT $ 3.00
Total Number of Units Distributed 250,000
Total Number of Responses Received 1,000 0.40% Percent Response
Total Number of Units Sold 1,000
Gross Margin $ 6,000.00
Less Unit Costs (as calculated above) $ 3,000.00
TOTAL NET PROFIT $ 3,000.00
Number of Sold Units needed to breakeven 1
Number of Direct Mailings needed to breakeven 125
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