Direct mail distributors attract end users with consulting, low prices and creative features.
According to David Foster, end users often think they can produce affordable, effective direct mail without outside help. Foster, a sales representative at distributorship GBF Information Systems Inc., Portland, Maine, has proven them wrong for 10 years. "When customers do it their way, they're limited to their own knowledge base about printing and mailing," he says. "By using someone like us, they get a much better range of choices. Sometimes, you have to convince them that's so."
Selling Value-Added Features
Foster recently landed an oil company's direct mail account by brainstorming ways he could add value to it. Originally, the client wanted address labels for a direct mail project it planned to produce in house. It wanted to stuff envelopes with cards informing its clients about new payment plans.
Instead of labels, Foster suggested applying addresses with an ink jet press and adding bar codes to help the post office sort the pieces. "It lowers the cost for mailing and gives [the customer] more to spend on the actual piece itself," Foster says. Instead of cards, GBF proposed an 8 1/2 x 13 1/2-inch, C-folded mailer made of card stock with a section including check-off boxes for types of payment plans. A perforation along one of the folds allowed recipients to detach and mail the section. During interviews, Foster also learned the oil company was altering its name. He suggested promoting the name change with the direct mail project.
"Many end users want to get away from the headache of processing their own mail in-house. All you need to do is offer them relief, and they'll help you to make the sale."
Michael Bazinet
Part Owner
Creative Print Services
Bangor, Maine |
To produce the piece, GBF partnered with a graphic designer and a medium-sized manufacturer based in Maine. The designer created 2-color announcements, including a message on the outside of the direct mail that reads, "An important announcement from the people who deliver your oil and propane." GBF collected the client's address database, and the manufacturer printed and mailed the pieces.
Foster says his clients were pleased with the results. The project had only one downside: it was only 2,000 pieces large. Direct mail requires the same amount of work regardless of its size, Foster says, and obviously, larger sizes are more profitable.
To satisfy its hunger for larger orders, GBF recently added value to 50,000 direct mail pieces for a welding supplies company. "[The client] was looking at doing a black-and-white letter in an envelope with regular fonts. It was pretty generic-looking," Foster says. GBF spiced it up with 2-color letters and envelopes, unusual fonts and varied point sizes. GBF also included the company's logo and added the words "special notice" in red ink on the envelope. Foster used two manufacturers for the envelopes and cut sheet letters. A mail house folded, inserted and sorted the products according to postal regulations. GBF saved the client approximately $4,000 in postal costs, Foster says.
Both case studies are examples of the advantage distributors have over manufacturers in direct mail sales, Foster says. "The manufacturer is interested…in getting [the product] out the door," he says. "The distributor may be more interested in the value added for that customer," he says.
Selling Stock Mailers
Dan Sherman, president of distributorship SBF Enterprises, Kalamazoo, Mich., says he doesn't focus on value-added features. Instead, he emphasizes stock mailers-and outstanding customer service. To differentiate itself, SBF offers same-day shipping, a large inventory and fast, personable customer service. "I have had the customer on my cordless phone, called up an art file for changes and faxed it back before the conversation ended to close a sale," Sherman says. "I call a customer to personally remind them that their forms might be getting low….Sometimes, they joke that they wished they knew what I looked like from four states away, but are happier with the service electronically than with what they were getting in their own backyard." Thirty percent of SBF's sales consist of mail-order projects for the health care market.
Direct mail poses several challenges, Sherman says. Mailing to a database can be complex, often requiring intensive relationship-building with clients. Also, direct mail often has a long sales cycle. To meet these challenges, SBF offers in-house fulfillment services. "We feel we have better control of accuracy if we manage and maintain the database ourselves," he says. "It has been a great decision over the years in terms of quality control and marketing other services."
Controlling Quality
Like Sherman, Michael Bazinet, part owner of distributorship Creative Print Services in Bangor, Maine, also tries to lock in quality control-but by partnering with direct-mail manufacturer Creative Digital Imaging, which he heads. "We were uncomfortable with going outside for this work due to the complex nature," Bazinet explains, "and [it was difficult] finding an outsource partner who would look at [short] runs." Creative Print Services provides short run direct mail to complement its bill and statement processing, which account for 95 percent of its sales. Clients include cities, hospitals, oil companies and industrial suppliers.
Reprinted with permission from Print Solutions Magazine,
published by
the Document Management Industries
Association.
