Here's the story of a small,
almost successful mail order
entrepreneur, and how he overcomes
the blues that comes with his
way of conducting business:
What an adrenalin rush! Last week
when I visited the post office
my post office box was overflowing
with orders. One day, I had to
get a plastic container just to
carry the mail home. At the end of
the week, I had made about $1,200
in orders!
Unfortunately, I spent money to
stock up on inventory. I anticipated
receiving the same type of
business the next week to make up for any
overspending I had done this
week.That did not happen.
The next week brought in a total
of $150 in orders _ and the week
after that brought in only
$10! After that, depression set in.
I kept saying "What will I do
now? I spent the $1,200 and only have
$80 to my name. Rent will be due
in a couple weeks and I'm flat broke
- simply because I let money go to
my head because I was temporarily
"rich."
This is one example of how a
business works sometimes and it's
important to not take everything
for granted. As employees of
other companies, we were use to
the fact of receiving a paycheck
every week. Whether we worked hard
or not, our paycheck was always
the same and always on time. All
we had to do was put in our 8-hours,
5-days a week.
Also, we were not used to spending
any money to fill orders. If we
needed to mail something, we sent
it to the mail room or ran it
through the postage meter. As
employees, we didn't pay for the
postage out of our own
pockets. Our employer took care of it.
That
also goes for supplies. If we ran
out of paper for our typewriter,
we went to the supply cabinet and
got a pack out. We never worried
about spending our own money to
pay for office supplies.
But when you own and operate your
own business money is hard to come
by especially the first few years.
You generate your own income! So
instead of thinking about riches
and glory _ think about improving
upon what you already have. If you
have a $1,200 week pat yourself
on the back _ but don't be stupid
like I did and spend it thinking
you'll have the same amount next
week. This may not happen for
another 6 months!
Instead, find out "why"
you generated this much money one week
and hardly anything the next week.
Did you stop marketing because
you didn't think you had to
anymore? Did you spend time filling all
those $1,200 worth of orders and
generating back-end sales? (A
back-end sale is placing some form
of advertising in with the orders
you fill that will generate
additional sales. These items should
be for products and services that
either compliment or are the same
as the product the customer
purchased.)
Were all the orders that made up
the $1,200 week for the same
product or different ones? Where
did you advertise in order to
generate this response? Was it a
specific publication or a
combination of several of them?
Were the orders for something
that people run out of frequently
(i.e., printing, typesetting
and advertising?) If so _ you can
have a special offer for these
same customers in a few weeks with
a money-saving coupon for them
to use. This will generate repeat business and the
likelihood of
another $1,200 week in the near
future.
However, if you do spend the money
like I did and depression sets in,
just sit down for a moment and
reflect on what you do have: a roof
over your head, food to eat, a
legitimate business that will grow
and possibly steady out in the
future, peace of mind and the ability
to work on your own without
employers and people breathing down
your neck!
In addition _ if you spend the
money and cannot buy the supplies
to fill the orders, DON'T just
avoid your customers and hope
they'll understand. Instead, send
them a postcard that simply
explains that you had such a large
response that you sold out of
the item. Tell them approximately
"when" their order will be
filled and "when" to
expect it. If you can't possibly fill the
order within 30 days, give your
customer the option of getting
their money back or better yet _
issue them a Credit Voucher to
use on future purchases.
If you have no income at all and
cannot possibly refund people's
money offer them something in
return that you can provide. You
need to find some way to
compensate your customers. Remember
that they trusted you enough to
see your ad, write out a check
and spend their hard-earned money
on you. They may not have a
lot of money either. Avoiding them
will turn you into a "rip-off"
artist with no future in the
industry!
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