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Direct Marketing Analysis
Promotion "Buster Bean" Sampler @ 175,000 Units Date
Gross Margin per Unit Direct Mail CosSelling Price $50.00 CircularsAdd: Handling Charge 3.00 Letters
Total Revenue per Unit $53.00 InsertsLift Pieces
Cost of Merchandise $16.50 EnvelopesShipping or Delivery 2.00 Order FormsOrder Processing 0.65 List Rental
Cost of Returns 1.00 AssemblyBad Debt 0.55 AddressingOther (Guarantee Card) 0.06 Postage
Total Cost per Unit $20.76 Other
Gross Margin per Unit $32.24 Direct Mail Cost per Unit
Net Profit and Breakeven PointUnits MailedResponse RateUnit SalesGross MarginMailing CostsFixed Costs
Creative Development
Allocations, OtherTotal Fixed Costs
Total Net Profit
Breakeven Unit SalesBreakeven Unit Mailing
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Use this spreadsheet to run the numbers on a direct marketing campaign. It includes a breakdown of gross margin of ththe cost of the direct mailpiece, and an analysis of the profit.
For some mailings, you may know the total cost of each mail unit but not know the breakdown costs for the individual cosimply enter the total unit cost into the "other"calculation cell, and enter the label "Total cost" in the cell to its left.
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August 13, 2008
per Unit$0.150.150.140.060.100.050.200.150.050.140.00
$1.19
175,0004.500%
7,875$253,890$208,250
$12,000500
$12,500
$33,140
4038,946
product being sold,
ponents. In this case,
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ts, and associated MS Word, PDF andThese are invaluable small business tools.
Excel and other applications in the Office
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