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 i,
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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