Special Report Insert Media Buying Guide
TM: Beyond costs, are there additional considerations?
Michael Feldstein: The other thing you should make sure of is that [taking inserts] doesn't negatively affect your core business. You have to look at whether it's slowing down the shipment of your products, and make sure it's not creating additional headaches. Your core business is your bread and butter, and you don't want it to be negatively affected regardless of the revenue you'll be generating from an insert program.
TM: How did Guideposts determine not to offer a package insert program?
Lyskowski: We're fairly large, and we send out over 2 million to 3 million packages a year. We looked at the whole program, and even if we maxed it out—put six inserts into an envelope and got it into the shipments—we were going to make less than $100,000 [annually]. You look at the cost of the resources we were going to put against [the program], and it just didn't make much sense.
TM: What has made running a package insert program worth the effort for Boardroom?
Feldstein: I guess it's incremental revenue. It's money that was not there before, and it's money that we have found does not take away from the response to our own stuffer offers. But like anything else, it takes time to manage properly and make sure the mailers are satisfied that their inserts are getting shipped.
So, it's not exactly easy. On the other hand, it generates the kind of money that some people don't think about, and if you give it a little attention, it can generate some nice incremental dollars.
TM: If you know your program costs, why can't you just charge a sufficient CPM?
Lyskowski: In theory, you can charge the price you need to cover costs and turn a better profit. But people are only willing to pay so much. Basically, what ends up happening is you're trying to fill up your program. If you use an envelope [to hold the inserts] … you have to print that envelope. If you're only going to send that envelope off with two inserts in there, you get killed.