Selling direct: avoiding the pitfalls

With the supermarkets controlling more and more sectors, small firms are increasingly looking to sell direct and develop their own customer base. Because you obtain retail doesn’t make it immediately more profitable. The three main routes are:

• direct mail/mail order
• selling off the page
• the internet

Here’s some guidance:

Direct Mail

Spend more time and effort on compiling your list than what you are going to send. Mailing lists fall into two sorts, your own and bought-in:

• own customer lists (you make more money from selling more goods to existing customers than the expense of buying in new names)
• mailing lists are rented (occasionally bought) from list brokers. The names are derived from magazine subscribers, shareholders, exhibition attendees, club membership lists etc. Cost varies from £100/1000 names upwards.
• send at least four items: sales letter, enquiry/order form, brochure and reply envelope
• The sales letter should be as personal as you can make it (never Dear Sir/Madam).

Selling off the page (small ads)

Most newspapers and magazines require you to comply with the Mail Order Protection Scheme (see www.mops.org.uk.) Don’t expect to make a profit on your first insertion (”repetition is reputation”). Profit comes from selling more goods to the segment you have identified (those who reply to your ad). Pack as much as you can beneath a strong headline, without shrinking the text too much. Make an offer (most important). Most small ad response is an impulse purchase. Choose a mag that carries lots of small ads, under an appropriate heading.

Selling off the internet

With billions of websites out there, mass market suppliers will have their work cut out. Niche providers stand much more chance simply because Google will find them easier. Remember that websites should:

• be easy to navigate
• provide easy to find information
• make ordering simple off a secure site
• be frequently updated
• provide a community feel
• encourage feedback with promise of swift response

More on websites, click here.