direct mail, Government, Marketing, Media, Thank You, USPS

Their Appointed Rounds

The United States Postal Service closed out their fiscal year September 30.  Never mind that the rest of the world goes by the annual calendar; the USPS wanted to beat the Christmas rush.

All in, the giant continues to perform well, within the confines of its quasi-government walls.  I wish the rest of the Federal government departments spent as much time looking after their own performance and expenses as does the USPS.

But from the latest Revenues Pieces And Weights report, here are a few glimmers of surprise and excitement.

  1.  It is a $69.6 billion dollar enterprise.  In the Fortune 500 list, it hovers around #37, bigger than Target, and smaller than Procter & Gamble, both good neighbors.  Like both of these companies, the USPS is an indicator of the USA’s pulse rate, though we will admit that it has slipped a bit.
  2. In 2017, the USPS revenues slipped $1.8Billion.  We know why.  The Web, social media, email have all disenfranchised much of the USPS core business: first class mail and standard mail.
  3. First class mail continues to fall, $1.9Billion.  Compared to last year, it delivered 2.5Billion fewer pieces of mail, a drop of 4.1%.  Why? Because we receive our invoices, checks and statements electronically.  We pay electronically too.
  4. Standard Mail, now call Marketing Mail, dropped 2.6Billion pieces, about 3.2%.  Why?  Last year was a mail-infused election year.  It was distinguished by huge volumes of mail, from you know who, despite his predilection for Twitter.
  5. Overall, in its market dominant categories, that is, where it holds monopoly rights, revenues fell just over $4.0Billion.
  6. In the open competitive markets, ie., parcels and packages, revenues were UP over $2.2Billion, a 12.5% increase.  Wow! Who knew?

The Web Taketh, And It Giveth

Here’s what I find impressive about the USPS.  Despite the constant nagging of the digital futurists who want to write the Obit for the post office, it continues to hold its own.  In an environment where Internet media are running rampant, the USPS has found a broad new niche: parcel delivery, a $20Billion business.  If anyone should be worried, it will be the brick and mortar retail stores. Ask Sears.  Ask Toys R Us.  Ask Amazon.

American consumers have taken to the Web in all respects, but at day’s end, they need physical product delivery, and the USPS has risen to serving that need.  After all, they were coming by our house anyway.  Their two main competitors are UPS and Fedex, the latter using the postal carrier to make the “last mile” delivery.

Neither Rain, Nor Snow, Nor Gloom of Night…

Postal carriers are the only American entity which visit 157,000,000 addresses every day.  They delivered, all in, 149 billion items in 2017.  They lifted 24 Billion pounds, or 12 Million tons, of physical product: mail, checks, magazines, parcels and yes, live bees and plants. The USPS has over 500,000 career employees and another 140,000 part-timers.  While this may seem like a wildly aggressive employer, I put it to you that the postal employee actually delivers, a claim many can’t make for other government institutions.

So hats off to the USPS.  It continues to fight the currents, and with little help from its political friends, it far surpasses its governmental cousins.

Thanks for reading! If you would like to take a look at the USPS 10-K for 2017, click here!

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Culture, Mystery

Gone To Press

Self-published books are easier that ever, thanks to digital technology.

A few months back I sat in a shaded bedroom with a gaggle of kids all waiting for a bedtime story. Not being that spontaneous, I resorted to an old campfire story game to get these primary schoolers ready for bed. Yesterday I published the entire story “Roarg– A Dragon’s Quest” in paperback form.

This was not in the plans, actually.

The kids, count six of them, all huddled on two bunk beds staring at a flash light in the middle of the floor, which was our token campfire. I led them on a tiger hunt. In this story game, there’s lots of slopping in swamps, swishing through tall grass, crunching over rocky terrain, jumping away from gators, all in pursuit of a hungry, giant cat which is trying to eat us. Much slapping of hands, raspberry sounds and other bodily noises punctuate the dangerous trek.

The story was begun to put them to bed. But that’s not where it ended.

The scene is reminiscent of the new movie “The Battle of the Sexes” starring Steve Carrell and Emma Stone.    There is a delicious moment early on where his character, Bobby Riggs, is noisily and boisterously guiding his son, jumping from one $5,000 couch to the next one in his wife’s expensive and stately living room, all the while loudly warning of the perils of falling off the couches and into the jaws of the gators which swarm the Persian rug below them.

Anyway, in our story, we dumped the tiger in favor a more evil and ominous foe, Magu, who was a powerful monster with a ruthless disposition. Magu threatened the livelihoods of all the kids, and it was their job to get Magu. To compound our perils, enter Roarg, a dragon, who is equally horrific to think of, and before I knew it, we were into a saga.

Chapter V: Trouble On The Mountain. Illustrated by Finn Brown.

After about 15 minutes of much noise and screams and action, I said we would continue another time. Magu and Roarg were in deadly conflict, on the mouth of a volcano, I think, or on a mountain top, or maybe in an ocean whirlpool.

The kids all collapsed, and I figured that was the end of it.

Not so!

Our grandson continually prompted me on every following visit to continue the story…up to the point that he knew it better than me. I felt I had to write it down.

Over the next few months every time we spoke, he brought up the tale, and asked how it was coming along. Well, I took action, and some 15,000 words later, I completed the suspenseful, adventurous and comprehensive tale of Roarg– A Dragon’s Quest.

Self-publishing is easier now than ever. I contracted with a publishing site called http://www.blurb.com, and without a lot of error successfully printed up my book.  As a side item, did you know that there are more than 1,000,000 new books released every year?  Publishing sites like Blurb and Shutterfly make it possible.

Roarg is a good story, complete with danger, suspense and a clever ending.  I have tested it out on our two 11-year-old grand daughters, and they were thumbs up.

If you have kids, grandkids, nephews, nieces or even a nice young neighbor who is a reader, this is an exciting and fast moving tale. You can get a copy of Roarg at blurb.com.

And think of this too, you actually know the author!

Thanks for sharing! I hope you like the book!

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direct mail, Economics, Education, Fundraising

What It Takes To Raise A Buck

The Dream Catcher: the ultimate gift.

It may be a function of age, but we receive a fair share of fundraising direct mail. Occasionally we get kits that amaze us for their content, with the underlying question, how can this possibly make money?

St. Joseph’s Indian School uses a donor acquisition package that pushes the boundaries, but based on their frequent use, this kit makes money. But it still amazes.

A personalized lift note accompanies the letter.

The key to powerful direct mail is rolled up in this slogan: List-Offer-Format-Copy. You can figure it out. But a subset of “Format” is fundamental to understanding good design: Size-Cards-Labels-Diecuts-Personalization.

Take a look at St. Joe’s and how they go beyond the formula.

The 9×9-1/2 Flat kit is hard to ignore.

Size
The envelope is 9×9-1/2. No wait, it’s not an envelope. It’s more like a bag, a catch all, and it’s a half inch thick. Not normal! Right away, we are talking a Flat, not a letter. Odds are it weighs more than 3.3 ounces, so no kidding, this is a small trunk in the donor’s mailbox. Despite its bulkiness, it is still machinable, but I’ll bet the USPS would love to be rid of this mini-parcel bouncing through their multi-million dollar sorters. Remember, in direct mail, size counts.

The calendar is one of 8 personalized pieces.

The perfed donor form highlights what your donation will buy.

Cards
Many successful kits provide a card. It’s personalized, perhaps laminated or plasticized, embossed, and maybe delivered in pairs. Very common in retail, insurance, service and association mailings, cards convey belonging and entitlement. While St. Joe’s doesn’t have a card per se, they do include personalized memorabilia like calendar cards, and gift certificates.

27 address stickers, enough for every utensil in the kitchen drawer.

Labels
Do we have enough address labels? Maybe, maybe not. Until you have labeled all your electronic gear, computers, cell phones, 14 golf clubs, CDs, Vinyl, USBs, chargers, staplers, umbrellas, Christmas cards, 3-hole punch and entire library of Clive Cussler books on loan, you aren’t done. And beside labels, anything that is pressure sensitive, like Post-it notes, velcro and magnets counts as an involvement device that draws your reader in a tactile way to your mailing. St. Joe’s goes over the top to provide stickers and labels for the donor, their children and the next door neighbor’s cat.

Mood aubergine: more labels for every occasion.

Die-Cuts
Really a technical obsession for printers and origami artists, the die-cut is a subtle paper carving that uses perforations, kiss-cuts, windows and trimming to create a 3-dimensional or engineered aspect to your kit. The recipient will work those die-cuts intuitively, without thinking, to unfold and self administer a little presentation for their personal viewing. Again die-cuts precipitate movement and finger work, which is involving your reader.

The Post-it note doubles down on the ask.

Personalization
St. Joe’s knows how to attract the eye, and that starts with calling out to the reader repeatedly. 8 times in fact. Envelope, letter, donor form, certificates, address labels, stickers, calendar, lift note…no matter your persuasion, it is hard to casually throw out a piece of paper that has your name on it.

I offer an additional element that may trump the 5 attributes above–

A 24-page calendar with original art makes this kit indispensible.

Indispensibility
Above and beyond the formula I gave you, the appeal of the St. Joe’s piece is that you just can’t throw it out. Why? Because in addition to all of the features, the envelope is packed with gifts, and useful items: three shrunk-wrapped greeting cards, a note pad, a 24-page calendar with art, the stickers or course, and the piece de resistance: the Dream Catcher. Not to mention the 3 penny stamps affixed to the reply envelope. Almost impossible to throw in the bin…just can’t do it. Arrrgh!

So there you have a fully loaded kit.   But can it pay for itself?

The first rule of fundraising: donors don’t come free. So management knows they must develop their donor files, which is what this kit is for.

The note pad’s backer explains the mission and prayer of the Lakota community.

It’s a bit of a guess, but based on a nickel a page, this kit probably cost around $2.50 to print and assemble, plus the Dream Catcher…, maybe $3.00. Postage will be around 50-55 cents, based on a 6.4 ounce kit, automation rate, non profit.  Add in the lists, freight and data processing and it has to be $4.00 a kit.

Wow!  “Who has that kind of money?” fret the accountants, and by the way, a lot of donors, too.

But here’s the thing, because of its impact, its stopping power, this piece could have a 5-8% response rate.  Let’s say 7%.

Three tastefully designed greeting cards, individually wrapped, are an extra push for donation.

Then $4.00/7% = $57.00 cost per response.  And what is the average gift? They are asking between $8-$70.  Again say it’s $30.  So the net cost is $27 to get a new donor.  That donor will have a longstanding, profitable relationship with St. Joe’s and looking at the financial statement, there is about a 10% chance that the donor may make a final bequest in their will to the organization.

Overall, St. Joe’s has a fundraising efficiency of about 31%, according to their financial statement. 31 cents to raise a dollar.

This may seem higher than some of the nation’s largest, more well known non-profits.  But keep in mind that those have strong, pervasive brands, high impact causes like hurricanes and disease, and oodles of corporate in-kind support, too.

Thanks for reading!  Please share!

 

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Culture, Media, Science

Tip-a-Tip-a-Tap-Tap-Tap-Ching

Typewriters deliver a physical honesty.  No spellcheck!

My 8-year-old grandson cautioned me that to write important stuff in an email for posterity was not a very good idea.   “It’s technology'” he explained, and pointed out, “it’ll get lost really fast.”

After 40 years in the writing, printing and mailing business, I experienced a moment of happy vindication.

He made a good point. Despite the pervasive and indelible nature of social media, unless you know what you are looking for, ten years later, that little nugget of an email is crystallizing somewhere in a cloud far away, never again to fall to earth.

I have spent most of this summer reading hundreds of hand-written letters dated between 1943 to 1947. These nearly daily journals record my mother’s life in England as the war was finally won, and reconstruction had begun.

Mom’s letters to her dad 1944-1947.

It is a safe bet that had the stories been written as emails, they would never have resurfaced. But these did, unbidden, and made for an arresting and revealing read.

They appeared in a box from her estate, neatly tied together with a shoelace. The bundles were collected and saved by her father, in New York. No internet cloud at work here.   But without doubt, their physical presence could not be ignored; they had to be saved, and they were.  As a result, her story was available to be read, 70 years later. I’ll share more on that another time.

The workhorse 1915 Underwood–engineering marvel.

Along with the letters, I also inherited her Underwood typewriter. As a child I recall working this machine, struggling with its keyboard, stumbling through sentences like a child inebriate, unable to find the right letters, the right case, the right push.

Last year I purchased some new ribbon to replace the one that was now leathery dry. The new reels came from England.

Today I installed the ribbon. It’s black and red, and very, very fresh.

Changing a ribbon: lost on today’s digerati

The Underwood is about 100 years old, and is an elegant, and beautifully engineered piece of machinery. It is built on a solid black cast iron base, and probably has about 500 moving parts, all in perfect working order. A priceless possession.

The Underwood’s engineering was as intricate as a Swiss watch…or a steam locomotive.

The QWERTY keyboard is easier to manage now, after a career of hammering away on computers. But there are some niceties, too. An exclamation mark (!) is accomplished by striking the apostrophe (‘) key over the 8 key. Back space, and drop in a period. Voila!

Wordwrap had not yet been conceived, let alone invented, so there is the iconic bell to warn that the margin is in sight. Better than that, there is NO spellcheck. What you type is what you get. The typewriter  has a physical honesty about it that today’s word processors cover up like embarrassed parents viewing a child’s essays.

Dad’s portable Corona was the picture of efficiency

At the same time I acquired the Underwood, I also received my father’s Corona portable. It comes in a cardboard leatherette case, tied together with a length of electrical cord. This machine is remarkably lighter, only 10 pounds.

The 1914 Corona flipped open to reveal a tiny keyboard

Opening the 100-year-old container, I discovered that the upper half of the machine, ribbons and all, flips over revealing a modest set of keys. These are faithful to QWERTY, but there is special efficiency in the Corona. The actual slugs have 3 different characters each. An informed operator can do upper case, lower case and special figures off of the small keyboard.  My father wrote his doctoral thesis on this relic.

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Three characters for every slug, a clever design.

Again, I marvel at the care and diligence of the engineers who designed these machines. They are quite exquisite pieces of working technology.

I recently read a book entitled, “The Iron Whim – A Fragmented History of Typewriting“, by Darren Wershler-Henry. This Canadian author has assembled a fascinating thesis about the role of typewriters in our culture. After our 30+ years of PCs and laptops and smartphones, his book is a brilliant perspective on how we have developed.  You think it’s just about stenos and typing pools?  Get the book.

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The #5 Underwood, 25 pounds of literary punch 

And then there’s Tom Hanks and John Mayer, who have just concluded a documentary “California Typewriter“.  They too are quick to tell you about the beauty of typewriters, especially as Hanks says– his typewritten messages “can never be hacked by the forces of evil.”  Apparently Hanks also has a book in the works, featuring three stories involving typewriters.  He has time on his hands?

So, returning to the advice of my grandson, I will continue to use my laptop, and thumb my way through the iPhone keyboard, but I am much more respectful of his intuition on these things.

Hard copy doesn’t go away, and especially in the long run, is probably easier to find.

 

Post Script: October 26–I just finished Hanks’ new book, “Uncommon Type”, a series of short stories written by the actor.  A great read!

 

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direct mail, Marketing, USPS

Finally Closing The Mail Gap

Out of town, or at the office, consumers can check their mailbox.

The USPS may be experiencing the continuing shrinkage in mail volumes, especially after the election season spike of 2016. But despite the trend to digital, the folks at L’Enfant Plaza, DC 20590 have come up with a winning service, “Informed Delivery”.

Householders and businesses can receive emails daily reporting what letters have been mailed to them.

You may have thought that Facebook or Instagram are the leading purveyors of new photography– the daily delivery of selfies, restaurant plates, goofy pets and family outings. In fact, it’s the USPS.  It takes approximately 411,000,000 new pictures every day.

The images are emailed, and also displayed on the user’s web portal.

The automated sorting process for letters relies on instantaneous scanning of a bar code, or a ZIP code. In 2016, Americans dropped 150 billion pieces into the USPS mail stream, and the sortation machinery looked at every one of those pieces and took a quick picture of the bar code or ZIP.

Until recently, those images were probably trashed a nano-second later. But then someone, a marketer, an engineer, a postal clerk, thought, “Hey, we took a picture, let’s post it!” Pardon the pun.

Automation machinery scans the incoming letter-sized mail.

Thus, the invention of Informed Delivery.

Every day, we at our household, receive an email from the USPS advising us of letter-sized mail making its way to us. The email includes an individual JPG of each piece, in black and white.

Now, you may feel that this is a weak attempt, a grasping at straws by a struggling old school business attempting to fight the digital tides. To me, it is enlightened genius. In a move that is worthy of a jiu jitsu artist’s praise, the USPS is using the power of digital to elevate its analog medium.

Every day a USPS email sends a photo album of coming mail.

Christmas Comes Early
For people at home, Informed Delivery may eliminate the excitement and anticipation of walking to the mailbox. ‘Kind of like peeking at your Christmas presents under the tree a few days before the event. Still, the service lets you know that a letter, check or invoice you are waiting for is definitely on the way. It also allows you to look at your mailbox, or mail-on-hold while you are out of town. ‘Kind of like scanning your voice mail–and you know you do that.

Many Happy Returns
Direct marketers will love Informed Delivery. Rather than waiting for the physical replies to show up from their latest mailing, they can see the reply envelopes as soon as the consumer drops it back in the mail. Admittedly, marketers can get digital reports now of bar coded reply mail, but Informed Delivery shows which replies, as there may be many outgoing mailings occurring simultaneously.

The USPS harnesses a digital app…who knew??

A Stronger Pitch
Every marketer considers the orchestration of messaging. We want to integrate email, social media and direct mail to complement a retail sales event. Informed Delivery alerts consumers by email of a coming promotion. The front of the envelope is the ideal canvas for the first tease of the event.

Intelligence At HQ
It should be pointed out, that if I have a dashboard of my incoming mail, so does the USPS. While you may worry that the USPS knows what I get by mail, I don’t. But if postal reform ever does get passed, the USPS may be able to offer user privileges to recipients based on the volumes of mail received. After all, if you do receive a lot of mail, you are a likely advocate of mail delivery, and to the USPS, that’s a high-five.

Kudos to the USPS on this latest innovation.  My bet is that as it takes hold, it will be leveraged, much to the benefit of one of America’s oldest and revered institutions.

Thanks for reading and sharing! If you want to see the Informed Delivery package, click on this!

(All pictures shamelessly taken from the USPS email and my personal portal.)

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Sports

Knuckling Down

The Canadian Open finished at Glen Abbey Golf Course in Oakville yesterday, and the scoring amazed me for the strokes under par.  After 72 holes played, the leader board showed the winner, Jhonattan Vegas at 21 under par.  Put another way, for 288 recommended strokes, he only needed 267 to win $1,000,000 dollars.

21 under par is a pretty astounding number in the PGA Tour.  But it reminded me that I have played at Glen Abbey, many, many years ago, and I recall that I finished just the front 9 with a 57, or 21 strokes over par.  I have not been back.

Since then, my golf game has not improved.   Despite lessons, innumerable outings, new clubs, golf magazine subscriptions, disciplined score keeping, fastidious handicap calculations  (28.6), spiffy shirts, and an unbridled optimism, I still come up with a couple extra strokes per hole, delivering a consistent 108, +/- 5 strokes.  36 over par any given day.

The reason this occurs is obvious to me now.   After years of recording and analyzing  scores, yardage, accuracy, putts and penalties, my game is consistent.  First, short drives.  Second, wide drives.   Once in the rough, always in the rough.   If most holes require 2 strokes to hit the green, I will usually take three and maybe four.

Next, sorrowful putts.  Regulation calls for two.   My putts will usually be two, but I can make a three, even a four happen so easily that the gallery of geese standing nearby shake their heads in dismay.

I have reconciled and accepted my numbing under-performance.  And like a professional, I have studied it and dissected every misstep, and have now come up with a new way to measure and find success.

The Knucklehead Count

It’s not the lackluster shots that dampen my game.  Sometimes I get away with some brilliant shots which compensate.  What ruins my game is the knucklehead shot.

A knucklehead shot is a bizarre, inept moment of inattention enhanced by extraordinary clumsiness.  Knucklehead putts that are marred by a scuffed green or a bouncing putter.  Knucklehead approach shots are skulled wedge shots that rocket with malice waist-high  over the green and, nearly hitting a startled partner, end up in a bunker.  A knucklehead bunker shot is hit so fat that the ball barely rolls up three feet to rest under the lip.  A knucklehead fairway shot usually involves a 5-wood grinding the ball deep into the  turf before skittering 12 feet to a stop.

Knuckleheads generally can be validated by quickly taking a second ball, and repeating the stroke with consummate perfection.  In other words, lacking my inattention and clumsiness, the prior shot could have been brilliant.  Unfortunately, but to its credit, the game of golf requires physical and intellectual honesty, so the knucklehead counts, and the beautiful do-over doesn’t.

I break out scores on my card to show putts, fairway, yardage, accuracy and penalty strokes.   But the most important score is the knucklehead count.

Why?

Because I have accepted my game.  The only thing that changes is the knucklehead count.  When I finish up, I can look at my score, and have this quiet moment of calculation:  “I shot a 108.  But take away 9 knuckleheads and I could have had a 99.  Wow!

When people asked me how my game was, I used to respond, “Pretty good! I found three balls and only lost two!”  Now I measure success, and surprisingly, happiness, by low knucklehead counts.

It’s a great game, even for the knuckleheads.

 

Thanks for reading!  Please share with your earnest golfing friends who are still looking for that perfect game.

 

 

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direct mail, Economics, Fundraising, Marketing, USPS

The Mysterious Cost To Raise A Dollar

The tiny silver disc leapt from the shelf.

The convolution of three events today raised my antenna that there is a superior organizing force out there that is directing our path as we hurtle through space.

As I was cleaning off our bookshelf, a small battery dropped to the desk. These are the tiny nickel-cadmium dots that we find in cameras and calculators. Not the larger lithium incendiary bombs that we have in our laptops and hover boards.

The calculator that failed to light up.

The battery was all that was left of a calculator I tried to resuscitate a few months ago. When the machine didn’t light up, I undid about 9 tiny screws to retrieve the battery.  As I popped off the back, the entire calculator sprung into a hundred pieces of keys, buttons and circuit board.  Incalculable.   I saved the battery to take into the hardware store for a replacement, just in case the calculator could be reassembled.

The next thing that happened was while emptying out the washing machine, we discovered that I had left my Moleskine diary in my shirt pocket. We retrieved the diary cover, very soggy, and found the rest of its contents spread like a million flakes of oatmeal over all our clothes. So much for keeping notes on paper.

A misadventure, attempting to extract the battery for replacement.

As the morning progressed, Lonny the mailman came by, and stuffed our mailbox with lots of missives from people we don’t know, but asking for money. The largest piece in the delivery was a giant, lumpy, shiny, pebbled envelope from Disabled Veterans National Foundation.

The DVNF package was an exceptional “Flat”: 12″ x 15″.   So huge that all the other mail was folded in with it.

In direct mail, size counts.  So I opened it immediately to find, mirabile dictu––another calculator!  And—- another diary!  Wow.  I am completed.

The Mystery of Fundraising By Mail

After admitting that the USPS may be a supernatural force, most would ponder the imponderable: how does DVNF get away with sending out calculators, books and notepads, and expect to earn any money for their cause?

A “max flat” the 12 x 15 kit is shiny, pebbled and lumpy. It was folded to fit the mailbox.

That, dear reader, is one of the great mysteries of direct mail fundraising, and one that I will unravel for you now.  All you need to know is what the package really costs, response rate and average dollar gift amount.

To calculate the cost, I first took the kit down to the USPS post office for an official weighing.   Ranjit asked with a jaded smile on his face, “Why?  Do you intend to sue them?”

“No.  I want to calculate their postage, and how much this whole thing cost in the mail.”

Ranjit replied, “It’s non-profit, but don’t kid yourself, they are making money.”

I pulled out the new calculator and said, “Look at this!  That’s gotta cost a buck anyway…”

Ranjit smirked, “Nope.  Twenty cents.  About $2 dollars a pound. It’s from China.”  We weighed it: 3.3 ounces.  “That works out to 40 cents, ” I figured.  Ranjit countered, “OK so maybe $1 dollar a pound, that’s 20 cents.”

A new pocket diary, calculator, memo pad and pen, all personalized.

I stared at him as I pondered that number.  At the same time Ranjit extended his arm across the counter to flash a beautiful bejeweled wristwatch, sparkling in buttons, numbers, dials, and a bright yellow face.  “How much do you think this cost?”  He smiled.

“Uh, I don’t know.  Ten bucks?  A nickel?   79 cents?”

“Close.  It cost me $2 dollars.  Made in China. I bought 5 for $10 bucks, each a different color, for every day at work.”

Smitten with this new-found knowledge of international commerce, I bid him a good day and took my 20-cent calculator back to the car.

The whole mail kit, which included the calculator, the notebook, DVNF pen and some letters and envelopes weighed 9.1 ounces.  According to the USPS, this Flat was part of a 3-digit automation scheme, so I estimate the non-profit postage was about $0.59 a piece.

This pocket diary replaced the soggy Moleskine in a nick of time.

The envelope was made in China, as was the notebook.  Without asking, one can only guess that the components all assembled, shipping included, must have cost around $2 dollars.  Add another 50 cents for the 5-way match on name (envelope, calculator, notebook, donor form and notepad) and you have a kit that surely cost over $3 dollars to put in the mail.

And Now, Using The New Calculator:

That’s $3,000/m for you printers out there keeping score.

The donor form offers a $2.50 check as a tempting diversion. But they want $15-$25. Go figure.

When most mail kits ring in around $0.35 cents each, $3 dollars is a hefty challenge.   In their calculations DVNF finds a breakeven point by dividing the total cost of the kit by the average gift amount.   Looking at their donor card, they suggest a gift of $15-$25.  Taking the lower end, their breakeven response is $3/$15 = 20% response.  At the higher end, 12% response.

12% – 20% response is a steep hill.   This particular charity is known for its high fundraising costs.  According to Charity Navigator their fundraising efficiency is $0.71.  That means for every dollar raised, they spent 71 cents.

For this package, that translates to $3/.71 = $4.23 raised for every piece mailed.

If their average gift is $15, then their response rate would be $4.23/$15 = 28.2%.

And at $25, the response is 16.9%.

There’s no way to be certain, and DVNF is unlikely to share their response results.  But the package itself is a donor acquisition kit.  That is, a high pressure sales pitch to get a new donor.   If indeed it did generate a 28.2% response rate, with a gift of $15, the cost per new donor is:  ($4.23-$3.00)/28.2% = $4.36, which is pretty darn good, if not downright incredible.

It also follows that every new donor will be repeatedly contacted for further donations, which over time, leads to a real surplus, destined for program expenses that support the disabled veterans.

 

Thanks for grinding through these numbers with me!  Please note that Disabled Veterans National Foundation should not be confused with Disabled American Veterans.

 

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