What's It Cost?
Many people dismiss video due to the misperception that it will be too costly, but it doesn't have to be. In fact, in terms of cost per conversion, with today's new lower cost technologies video may be cheaper than print.
Production costs vary greatly, depending on quality, length, locations, special effects, etc. Industry experts generally use $1,000 - $2,000 per finished minute as a starting point to estimate costs. Many companies already have video footage (from sales meetings, training programs, and corporate orientations) which can help keep production costs down. New shooting and editing technologies are also making video production more affordable than ever.
Mailing lists costs vary greatly. You may have a house list that you can use for the cost of maintaining and printing it, you can purchase lists that reflect specific demographics, or you can create a self-selecting list using a direct-response front-end device.
Duplication costs have come down dramatically in the last five years, partly because new technology has made extended play (EP) a quality playback-mode choice; that means less tape and less time.
Packaging costs are another variable with a huge range, from simple to extravagant and everything in between. Prices start at about a dime for a basic slip-case, to $3 on up for elaborate presentations.
Distribution costs include mail handling and sorting, plus postage. Small, relatively lightweight packages typically cost 35-40¢ for standard bulk-rate postage; large packages often require first-class postage due to size.
A ballpark estimate for duplicating, packaging, and bulk-mailing a 10-minute EP videocassette in a standard package is between $1.50 - $2.00.
Back-end fulfillment includes whatever you plan to do to close the sale; telemarket, follow-up, respond to reply cards, whatever. Again, costs vary greatly depending on what you do.
Not Just For Big Companies Anymore
All of this is to say, direct-marketing video isn't just for big companies with huge budgets. With new technologies making both production and fulfillment more affordable, businesses from car dealerships to photography studios are finding that even small campaigns reap big rewards.
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