Connectix
was introducing a new product in the middle of summer, the
worst time of the year. The company was only projecting a modest
$1,000,000 in sales for the year. The marketing
budget was non-existent. There was no staff to support it,
no infrastructure for direct sales, no call center - nothing.
But
I knew a hot product when I saw one. I analyzed the market
and projected $350,000 in sales (8,000 units). Not bad for
an investment of only $80,000. Problem was, no one believed
me.
I
knew we could make it happen, and went ahead with the project,
billing the company on net 30 terms. I produced everything
for a complete direct mail campaign from soup to nuts. I
wrote all the copy, oversaw the design and print production
(using the most cost-effective and efficient direct mail
production facilities). I combined 3 different customer databases
and optimized them for the mail resulting in the lowest possible
postage costs. I set up affordable telesales, customer call
center, warehousing, order entry, and fulfilment services
that were fully trained and ready to go in time for the mail
drop.
I
was wrong about one thing. We didn't sell 8,000 units over
the campaign. We didn't do $350,000 in sales. We sold over
5,000 units the first day! We sold 37,000 units over the
campaign. Most customers paid an extra $15 to have it shipped
overnight. We sold $1,800,000 and produced over $1,300,000
in net profit.
Adn the whole campaign was over in less than 5 weeks. Speed
Doubler was their most profitable product introduction of
all time and went on to do over $10,000,000 in sales that
year - 10 times their forecast.
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