Why did we choose these dollar amounts for subscriptions?
We chose the $7.00 per one-year subscription based on one of our competitor's price. Bark, which is also a quarterly publication and gives a subscription discount for one year, charges similar subscription and advertising rates. We also compared our rates with local – Gainesville-area – publications and came up with a CPM of $40.00.
We understand that this low subscription rate will make us little money, but we' are offering this substantial discount in comparison to our competitor’s publications due to the fact that we are new, smaller and a local magazine. Also, the trend seems to be going the way of subscriptions saving the consumer more than 50% off the newsstand price, and we want to be competitive price-wise with other national and local publications. As an additional incentive, we're also offering savings upward to almost 300% for readers who subscribe for three consecutive years, as well as a rubber, bog-chew toy for those who subscribe for more than one year.
Why did we choose the dog bone as the design for the postcard?
Dog Friendly is a dog magazine, so a dog bone is realistic and somewhat token.
We're giving our potential readers a sense of who we are - we have a sense of humor and we're also relevant. And the dog bone wasn't too expensive to produce.
What are the production costs for the direct mail piece?
Labor to produce the direct mail piece is free because it is our staff that produced the graphics and text. The printing costs are:
$1,180.34 (cost of printing 7,500 B/W copy on cardstock.
Two postcards are printed on each sheet of cardstock. This is a
discount rate due to printing in bulk. The individual cost is $ .16)
$331.50 (cost of printing 7,500 color copies in bulk on standard
8 ˝” x 11” paper, one per mail out. This is a discount rate
due to printing in bulk. The single color copy is $ .99)
$16.83 (cost per box of 500ct. plain business envelopes at
x 100 DiscountOfficeSupplies.com. We will need 100 boxes to mail out
$1,683.00 50,000 direct mail pieces)
+ $331.50 (standard-paper color copy)
$1,511.84 (total printing cost)
+ $1,683.00 (business envelopes)
TOTAL: $3,194.84 (total production/printing cost)
Distribution cost/direct mail piece?
$ .37 (to send Direct Mail piece)
+ $ .23 (return postage)
$ .60 (total postage per Direct Mail Piece)
x 7,500 (number of people we are mailing to)
$4,500 (cost of postage for all Direct Mail pieces)
$3,194.84 (production/paper costs)
+ $4,500 ( distribution costs)
$7,694.84 (Direct Mail cost per issue)
x 4 ( number of issues per year)
TOTAL: $30,779.36 (cost of Direct Mail campaign per year)
Dog Friendly |
Business Plan |
Mail Piece |