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Direct Mail Data Table

This document outlines the parameters and profit model for a direct mail campaign. It shows the printing and mailing costs per unit, expected response rate, profit per response, and calculates the gross profit, total costs, and net profit based on the number of units mailed and response rate. The maximum net profit of $8,937 is achieved when mailing 275,000 units at a response rate of 2.5%.

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pvenky
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Download as XLSX, PDF, TXT or read online on Scribd
63 views

Direct Mail Data Table

This document outlines the parameters and profit model for a direct mail campaign. It shows the printing and mailing costs per unit, expected response rate, profit per response, and calculates the gross profit, total costs, and net profit based on the number of units mailed and response rate. The maximum net profit of $8,937 is achieved when mailing 275,000 units at a response rate of 2.5%.

Uploaded by

pvenky
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Direct Mail Profit Model

Parameters
Printing costs per unit:
Mailing costs per unit:
Responses:
Profit per response:
Gross profit:
Printing + mailing costs:
Net Profit

275,000
2.50%

$0.15
$0.28
6,875
$18.50
$127,188
$118,250
$8,937

$8,937

Number Mailed

Input Cells
Number mailed:
Response rate:

100,000
125,000
150,000
175,000
200,000
225,000
250,000
275,000
300,000
325,000

1.50%

1.75%

2.00%

Response Rate
2.25%
2.50%

2.75%

3.00%

3.25%

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