The math behind it
Break-even is simple division: total cost of the mailing divided by the profit from one new customer. A mailing that costs ten times your profit per customer needs ten new customers to pay for itself.
Anything beyond that number is profit. Below it, the mailing lost money, at least on the first visit.
Getting profit per customer right
Use profit, not the sale price. A job billed at one hundred dollars that costs sixty to deliver leaves forty, and forty is the number to enter.
If customers come back, count only the repeat business you are sure of. Optimistic numbers make every mailing look good on paper.
Lowering the break-even point
There are two levers: spend less per mailing or earn more per customer. Moving up a tier lowers the cost of each card, and a stronger offer raises the number who respond.
Get the cost side from the EDDM cost calculator or our price list.
