Direct Mail Cost Going Up

[digfesales105]

The point is this. Most agents are broke. Fact. Most every agent I talk to can't afford leads, gas hell they can barely afford to eat. (it does make me wonder why they are in this business then) But it's just the start. The post office is closing doors. They are talking about privatising. No Sat mail. They are losing money. Yes...it's only a penny. But over the past ten years...the increase has been huge. This is just another reason why IMO's are gun shy to drop new mail for new agents which then has then push old leads to "prove themselves". Which rarely works in the favor of a new agent. Some do make it. Most don't.

They just raise rates 2 years ago. Sarcasm isn't really what this thread was for but I know you'll have that.

Btw Josh...regardless of your post I will say that I looked at your links. Super interesting and very helpful. I like it a lot. In fact, I made some notes and discussed some of your points in our Friday meeting with my marketers. Thanks for the info.
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On a 1% return that adds $1 to the cost of each lead. Last Jan. EFES absorbed the 1 penny increase and did not pass it on to the agent. I would wager that they won't be able to do that again.

I have absolutely no clue why I'm even going here but...they really didn't absorb the cost? They changed the qualifications of the PPL program?
Now before you GO OFF like I'm picking on your child, I'm just making a point. I agree that they should've raised the cost somehow or in some way. It's only business. Lead cost will continue to go up with inflation. It will never go down. So a good business or company will be forced to raise the cost no matter how little or how high the post office raise's their rates. They raise rates...everyone must follow. A raise in 5 or ten years a penny..ok then. But every other year? Adds up fast and when you have a million new agents with very little or zero capitol...it's just going to get harder for that new agent to get up and running.

 

[Josh]

Sarcasm isn't really what this thread was for but I know you'll have that.

Btw Josh...regardless of your post I will say that I looked at your links. Super interesting and very helpful. I like it a lot. In fact, I made some notes and discussed some of your points in our Friday meeting with my marketers. Thanks for the info.

I think their is a misconception that sarcasm is always hostile. Maybe it's just that I'm from NY and we tend to be a little more abrasive than folks from other parts of this great country, but I thought it was amusing nonetheless.

I'm glad you found the links helpful. In particular I spent a great deal of time on Free Telemarketing Scripts For Everyone! and Welcome to AffordableDialer.com has a ways to go, but I do try to make sure the content on my sites is worth the time of the reader, so thanks again for the kudos!

I take it you "dig FE sales"?

 

[Rearden]

I am concerned long-term (10+ years) about the viability of direct mail.

It is so heavily subsidized that something's gotta give somewhere.

The one thing holding direct mail prices so astonishingly low is that junk mail accounts for something like 30% to 40% of the Post Office's revenue; I'm sure direct mail lobbyists will continue to push for the status quo.

...But one day we'll be seeing $1.00 per piece for first class mail when it's politically viable.

Imagine $1000 per 1000 for Generics...

 

[digfesales105]

@Josh..NY...OK...makes sense now. LOL! You're correct. I don't have it much anymore I think and Cleveland is no NY but that's where I'm from. When I first starting working in Columbus, ppl always asked me "where you from? NY?" haha And..I too would get mistaken as being"abrasive". Now...when I go back home around my family and friends who are not only Clevelanders but ITALIAN!...I see it. It's actually kind of annoying to me now. HA!

@Reardon...EXACTLY! Can you imagine having to do drops through say a Fedex or UPS? Because that is exactly what is trying to get done with USPS. It was also recently stated that we are going to see a huge increase in our junk mail we get everyday. It's the way the post office can increase revenue to offset the decrease in ppl using mail.

It's a new world and only the good agents(not necessarily good sales ppl) but smart agents will adapt and continue to succeed.
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@Josh...one last thing. I don't know the "word" for it...but digfesales is a play on the phrase. Yes...you said right. Plus, it is our initials. I would say what it stands for but I don't want to get hounded for trying to advertise or recruit. I know how much that's looked down on on here. D I G Final Expense Sales Although some seem to think I'm using it to "hide" like a child. HAHAHA

 

[WinoBlues]

Over all the cost per sale is down. Way down.

I remember back in the day when only business people had a fax at home. Then it was "any chance you have a fax or have a kinko's around?" Now it is more please scan, fax or mail back.

I do not solely work the SIWL market but write several a week. These are not all people living in tree houses. The majority have email. Even more have cells and like text messaging. It is amazing how many have Facebook.

1 cent increase is offset by the larger face and premiums. It cost me 50c to get delivery requirements back from a client that lives 3 hours from me. Friday I got back two applications in a priority envelope. It cost me $12. To mail and get back. US mail is still a great deal in my book.

 

[jdeasy]

The point is this. Most agents are broke. Fact. Most every agent I talk to can't afford leads, gas hell they can barely afford to eat. (it does make me wonder why they are in this business then) But it's just the start. The post office is closing doors. They are talking about privatising. No Sat mail. They are losing money. Yes...it's only a penny. But over the past ten years...the increase has been huge. This is just another reason why IMO's are gun shy to drop new mail for new agents which then has then push old leads to "prove themselves". Which rarely works in the favor of a new agent. Some do make it. Most don't.

They just raise rates 2 years ago. Sarcasm isn't really what this thread was for but I know you'll have that.

Btw Josh...regardless of your post I will say that I looked at your links. Super interesting and very helpful. I like it a lot. In fact, I made some notes and discussed some of your points in our Friday meeting with my marketers. Thanks for the info.
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I have absolutely no clue why I'm even going here but...they really didn't absorb the cost? They changed the qualifications of the PPL program?
Now before you GO OFF like I'm picking on your child, I'm just making a point. I agree that they should've raised the cost somehow or in some way. It's only business. Lead cost will continue to go up with inflation. It will never go down. So a good business or company will be forced to raise the cost no matter how little or how high the post office raise's their rates. They raise rates...everyone must follow. A raise in 5 or ten years a penny..ok then. But every other year? Adds up fast and when you have a million new agents with very little or zero capitol...it's just going to get harder for that new agent to get up and running.

You are wrong once again. They changed the PPL guidelines in early 2011 while you were still there. The 1 penny postage increase was in Jan, 2012. EFES did absorb that increase and there has not been any changes to the PPL guidelines since early 2011.

Nor do I ever "go off" about anything. That is your MO, not mine.
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Over all the cost per sale is down. Way down.

I remember back in the day when only business people had a fax at home. Then it was "any chance you have a fax or have a kinko's around?" Now it is more please scan, fax or mail back.

I do not solely work the SIWL market but write several a week. These are not all people living in tree houses. The majority have email. Even more have cells and like text messaging. It is amazing how many have Facebook.

1 cent increase is offset by the larger face and premiums. It cost me 50c to get delivery requirements back from a client that lives 3 hours from me. Friday I got back two applications in a priority envelope. It cost me $12. To mail and get back. US mail is still a great deal in my book.

The FE market that is served by the mailers do not have email. Not the 1% that are sending these in. i'm to say it's closer to one in 50 people that I see from the mailers have a PC. I can't remember even one that had a smart phone. More and more do have cell phones but it's likely to be a Trackphone.

That is the market I work.

 

[senior-advisor-indiana]

I am concerned long-term (10+ years) about the viability of direct mail.

It is so heavily subsidized that something's gotta give somewhere.

The one thing holding direct mail prices so astonishingly low is that junk mail accounts for something like 30% to 40% of the Post Office's revenue; I'm sure direct mail lobbyists will continue to push for the status quo.

...But one day we'll be seeing $1.00 per piece for first class mail when it's politically viable.

Imagine $1000 per 1000 for Generics...

By the time you are spending $1000 per 1,000 the average funeral will be more than twice as much also so you will still be sitting good.

 

[WinoBlues]

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By the time you are spending $1000 per 1,000 the average funeral will be more than twice as much also so you will still be sitting good.

Remember what cell minutes used to cost? How about long distance minutes? How about having to run to Kinko's to fax something. Stationary cost per year. Back when a nice funeral cost under $5,000.00.

 

[pbbaseball]

Announced today that starting in 2013, postal service is raising the cost on postage AGAIN by 1 cent. Rise in Direct Mail cost to follow I'm sure!

First class of course.... don't know anyone that sends direct mail on a first class rate though

 

[senior-advisor-indiana]

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Remember what cell minutes used to cost? How about long distance minutes? How about having to run to Kinko's to fax something. Stationary cost per year. Back when a nice funeral cost under $5,000.00.

No I don't remember. You must be one of those older agents.