Starting a mail order business

Aug 17 2005

Direct mail is a fascinating business, although needs to be managed carefully because some recipients of direct mail find it an intrusion of their privacy. It’s fine in your case having an idea of some products which interest you, but you need to know who else they will interest and how you are going to find those customers. Knowing your prospective marketplace is far more important than your own personal hobby!

My guess would be that there may be other enthusiasts like you who could provide the basis of a mail order business. There will also be a number of people who prefer to get their videos by mail order, simply because they are too busy to go to the video rental shop.

You will know your own particular niche and know where to find those people who would be interested in your service - eg clubs, societies and so on. You might be able to use their membership list to mail details of your mail order service or perhaps take a small advertisement in their publication.

Your aim is to build your own list of people who will respond with frequency to your mail order offers. This can mean carrying out a lot of marketing to sift through other lists until you have built your own very specialised list. Marketing is expensive!

Lists for mailing which might suit your particular needs can be sourced from list brokers. Using ready-built lists is expensive, typically £120 to £150 per thousand names for a reasonable list.

The Royal Mail is anxious to encourage direct mail and using their specialised mailing programme MailSort can reduce your postage costs (but involves you in more specialised work). There are a number of booklets about direct mail which you can get from the Royal Mail by calling 08457-950950.

For general advice about starting up your business, contact your local Business Link (0845-6009006). The British Video Association (020-7436 0041) have given me the names of two wholesalers who will be happy to let you have a catalogue (S. Gold & Sons 020-8501 9600 and Total Home Entertainment 01782-566566).

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