TommyCarey
Level X3
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Tons of people here work online and can easily set up an email campaign, but not many of us own a brick and mortar physical location that we have foot traffic coming to.
I was thinking about opening a bar and grill in my town since it's pretty big and the medium household generates around $80,000+ per year. So I know there's money here and I also know that everyone needs to eat and could use a beer every once in a while lol 
I know that there are a lot of bar and grills out there in the world so competition is pretty stiff.
So I started thinking how I could do some snail mail marketing since it would be super difficult getting everyones emails lol. I always get mail from restaurants within 5 miles of my house and started to look into how they get their mail out and to my house. I quickly stumbled upon Every Door Direct Mailing, or EDDM for short, and it seems pretty amazing. It can get expensive, but it's worth it in the long run if you can afford to run a campaign each week.
So for EDDM you can use a service that will set everything up, or you can do it yourself. Doing it yourself will save you a lot of money because you're cutting out the middle man.
You can go to usps.com and figure out where you want to send mail out to. The only downside is that you can only choose 5,000 mailings per run. You can purchase multiple runs, but you'll have to do it separately from one another.
I chose to check houses around where I live and targeted only households that generate over $100,000 per year. Below is an image of what you will see if you test it out.
I am targeting just over 4,800 homes totaling $847.79 for one mailing. Each area has a different cost so you could see a higher or lower total when you build up the area you want to mail to.
Once you find out what households and routes you want to target, you'll need to figure out what king of mail you want to send. Sending out post cards with coupons is your best bet to get people walking through the door. But you can't make just any type of post card, it needs to have a section on the back where the post office can post their information on it in order to get it to the right homes. I'm not positive if you can get them printed by the post office or if you're suppose to do it yourself. I do know that you have to drop off the post cards yourself and set everything up with an in full payment.
Has anyone ever done EDDM in the past or still does it today?
Thanks,
Razzy
I obviously make a commission on each investment, but I would have to do a lot of testing before I knew if this method was worth it.
I totally agree, you have to make the mail stand out a lot in order for it to get noticed. I would study how much mail you get on certain days and try to get your mailing out on the days that you get only a couple pieces. This will increase the chances of getting noticed and not fall into the recycling bin with the junk mail :(
I actually have a website in the works that will revolve around investing. I might test out this method and target only homes with 150k or more yearly income so that I know they have the money to invest :D I obviously make a commission on each investment, but I would have to do a lot of testing before I knew if this method was worth it.
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So that would be 24x60 which equals $1,440 coming in. I spent $850 so that means I would really pull in $590. Now with restaurants they only make about 10% to 15% on the food, so I would only be pulling in around $100 to $150 if I were lucky lol. But in this type of market you can't expect to pull in a huge profit from one ad campaign. You'll profit in the long run by the families that continually come in month after month because they love the food, atmosphere, waiters, drinks, etc. If the patrons had a good time they'll usually come back in and drop another $60. And the best thing is that when people have a great time at a restaurant, they tend to let people know by word of mouth or checking in on facebook which is FREE advertising
Well I never pulled the trigger and opened my bar and grill because I was too busy and couldn't invest enough time into it since I'd have to be there 40+ hours a week and if I did that my other ventures would suffer a lot.
Spending $850 for 4,500ish houses is pretty cheap indeed. I wouldn't be worried about a flood of traffic because with this type of marketing you don't get a huge response rate. You would need to keep hitting the same areas over and over again to convert them. So realistically you'll be paying 3x what the image shows just so you can get your postcard in front of the same people multiple times. Repetition is key here :)
If I were to do this I would plan to have a 0.5% success rate, meaning that I would see 24 people or families come through the door with the coupons I sent out. Now this doesn't sound like much, but if you have a family of 4 coming in for dinner, that's easily a $60+ check at the end of the night, and that's if they adults don't have a beer or glass of wine lol :D So that would be 24x60 which equals $1,440 coming in. I spent $850 so that means I would really pull in $590. Now with restaurants they only make about 10% to 15% on the food, so I would only be pulling in around $100 to $150 if I were lucky lol. But in this type of market you can't expect to pull in a huge profit from one ad campaign. You'll profit in the long run by the families that continually come in month after month because they love the food, atmosphere, waiters, drinks, etc. If the patrons had a good time they'll usually come back in and drop another $60. And the best thing is that when people have a great time at a restaurant, they tend to let people know by word of mouth or checking in on facebook which is FREE advertising :D :D :D
So if you could put $10,000 into this type of marketing, you'll see a quicker ROI than if you took baby steps. Obviously you'll want to do some split testing to see what works best, but after you tweak everything and it's performing very well, I would dump much more money into it :D
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Lynne
I can certainly see how this would be a really great way to target people in a specific area. I do think though that your mail must be outstanding to be noticed. When I get my mail I don't even look at the junk mail at all, not unless it is bright and unique so that is seriously catches my eye! Oh my gosh that looks like quite a cool service to use for a physical business Razzy and no I have not heard of them before. I am about to launch a new website which is local (only targeting a few towns in my country) so this might be an amazing service for me to use... well that is if it is available in South Africa and I'll be honest here I sincerely doubt it will be! I can certainly see how this would be a really great way to target people in a specific area. I do think though that your mail must be outstanding to be noticed. When I get my mail I don't even look at the junk mail at all, not unless it is bright and unique so that is seriously catches my eye!
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