Direct Mail Profit Model

Input Cells $7,188 1.50%

Number mailed: 250,000 100,000
Response rate: 2.75% 125,000
150,000

Number of mail
Parameters 175,000
Printing costs per unit: $0.18 200,000
Mailing costs per unit: $0.30 225,000
Responses: 6,875 250,000
Profit per response: $18.50 275,000
Gross profit: $127,188 300,000
Printing + mailing costs: $120,000 325,000
Net Profit $7,188
 Response Rate
1.75% 2.00% 2.25% 2.50% 2.75% 3.00% 3.25%