Recent decisions by the Postal Rate Commission (which we are ALL trying to get overturned) has shown us that
even with our best internal efforts and controls, we are ultimately unable to control all of our costs.
The solution for continued growth and profitability is NOT to continue to rely on cutting circulation that has
become less profitable because Postal costs have risen. Prefer Network takes the position that ultimately we must
create ways to make advertising spending more productive. You now have other options than just cutting circulation.
Beginning
in early 2006, we conceived, developed, beta tested, and validated
a pre-bindery mail optimization tool that leverages our extensive
catalog buyer data from Prefer, proprietary advanced address hygiene
processes, and previously untapped data sources to help our clients
offset the proposed postal increase. This tool, FreeMAX8, is now
in full production and delivering up to 6.3% improvement in margin,
as well as additional top line growth and more new names for our
clients using this process. FreeMAX8 gains have more than
offset the impact of the postal increase for many of our clients
without lowering their circulation.
For
Example: One of our production clients using FreeMAX8 will add
more than $1,300,000 to sales, and almost $390,000 incremental
margin after our costs, and will generate more than 10,000 new
or re-activated names annually without increasing circulation
(approximately 13 million books annually) This would offset their
anticipated proposed postal increase of approximately $330,000.
Very likely, you’d see similar gains…
This
simple process does not require any changes to your current service
suppliers and can be tested with no risk to you (we guarantee
gains in excess of our costs, or we will refund any unearned fees)