You have selected to place a direct mail piece with a local vendor that will include your message insert along with others. The vendor's mailing will reach 100,000 homes but only 50,000 are in your immediate marketing area. You would like to target only the 50,000 homes closest to your store, but would consider the full 100,000 home reach if it is cost effective. The cost for the production of the insert and mailing is $75 per 10,000 for the 50,000. There is also a $50 charge for using the 50,000 home reach. The cost for production of the insert and mailing is $55 per 10,000 for the 100,000. Calculate the total investment for this direct mail promotion for each option.

Question

Swanson

Business

21 August, 20:13

You have selected to place a direct mail piece with a local vendor that will include your message insert along with others. The vendor's mailing will reach 100,000 homes but only 50,000 are in your immediate marketing area. You would like to target only the 50,000 homes closest to your store, but would consider the full 100,000 home reach if it is cost effective. The cost for the production of the insert and mailing is $75 per 10,000 for the 50,000. There is also a $50 charge for using the 50,000 home reach. The cost for production of the insert and mailing is $55 per 10,000 for the 100,000. Calculate the total investment for this direct mail promotion for each option.

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Kassandra Ballard · Answer 1

Option 1: 50,000

$75 per 10,000 for the P50,000 = $375 + $50 (for using the 50,000 home reach) = $425 is the total investment for Option 1

Option 2: 100,000

$55 per 10,000 for the 100,000 = $550 is the total investment for Option 2