Direct Mail Campaign Financial Analysls Tool              
  Instructions:                  
                     
  Use this form to run the numbers on a direct-mail campaign. The form includes a breakdown of gross margin of the product being sold, the cost of the direct mail piece, and an analysis of the profit and break-even point. For some mailings, you may know the total cost of each mail unit but not the breakdown of costs for the individual components.  In this case, simply enter the total unit cost into (Cell 13 - Other), and enter "0" for each of the individual costs in cells "3" through "12" that you don't know the individual breakdown for.  You can only enter your data into the unprotected cells, cells "1" through "26."  
You may also reset a this calculator by pressing  the "RESET" button on the page.  This will clear all of your answers.  
  Promotion:  Date:                
  Direct Mail Investment                
Direct Mail Fixed Costs
  1)     Art / Creative Development
  2)     Other (e.g. Consultant fee) Specify
  Promotion Fixed Costs:         
                     
     Production and Mailing Piece Variable Cost
(per piece) 		               
   3)     Circulars
   4)     Cover Letter
   5)     Inserts / Brochures/Catalog
   6)     Lift Note
   7)     Envelopes
   8)     Order Form
   9a)     List Rental
           (cost per 1,000 names rented) 		   Enter list rental cost per thousand (1,000)          
   9b)     List Rental (per piece)                
 10)     Assembly (folding, stuffing, etc.)
 11)     Addressing * Lettershop
 12)     Postage
 13)     Other Specify
  Cost per Mailing Piece:                
 14)    Total Number of Pieces to be Mailed:
  Total Costs of Mailing                
     Total Investment in Direct Mail
Promotion: 		               
  Gross Margin per Order                
 15)    Average Selling Price per Order
 16)    Add: Handling & Shipping Charges
  Total Revenue per Product Unit:                
 17)    Cost of Goods Sold
 18)    Shipping & Handling Costs
 19)    Order Processing / 800# Cost
   20)    SPIFF to Telesales People
          (Sales Incentives) 		               
 21)    Credit Card Charges (enter %)    Enter % as a decimal or whole number (i.e., 5% as .05 or 5)
 22)    Cost of Returns (enter %)    Enter % as a decimal or whole number (i.e., 5% as .05 or 5)
 23)    Bad Debt (enter %)    Enter % as a decimal or whole number (i.e., 5% as .05 or 5)
 24)    Other Costs Specify
  Total Cost per Order        
  Gross Margin per Product Unit:                 
 25)    Enter Lowest Projected Response Rate Enter % as a whole number and/or decimal point (i.e., 5% as 5, 1.25% as 1.25)
   26)    Enter Incremental Response Rate
          Increase (e.g., .25 for .25% increases,
          .35 for .35% increases, etc.) 		Enter % as a whole number and/or decimal point (i.e., .25% as .25)        
                     
  WHAT-IF ANALYSIS BASED ON LOWEST PROJECTED RESPONSE RATE AND INCREMENTAL RESPONSE RATE INCREASE (Enter response rates on Lines 25 and 26)  
  Projected Response Rates  
  Projected Product Unit Sales  
  Projected Gross Profit on Product Sales  
  Total Investment in Direct Mail Promotion  
                     
  Projected Total Net Profit  
  Financial Analysis  
  R.O.I. on Mailing  
  Cost Per Customer (Order)  
  Net Profit Per Customer (Order)  
  Break-Even Analysis  
     # of pieces needed to break-even
(at the above Response Rate)  		 
     Product Unit Sales
(if only break-even # of pieces are mailed) 		 
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