5/10 Sixteen

5/10 Sixteen

 (5,000 Mailed & 10,000 Distributed).

To learn more about hybrid campaigns, read my article on cutting price while increasing quantity

This is my favorite overall choice to recommend for someone who wants to start a serious 9×12 business and not just a quick campaign here and there, becuase this model will deliver the lowest price with the most value. It also builds a wall of protection against competitors like a fortress that they won’t be able to intrude upon.

Don’t dismiss it by the low pricing: #1 even at this ridiculously low ad pricing, the profit margin is still a totally respectable 50% and #2 you can easily raise the prices without adding anymore value, as it can still demand up to twice as much (or more) if you’re confident.

8.5″ x 11″
5,000 100lb AQ Cover (mailing portion)
10,000 100lb AQ Text (distribution portion)
3-4 day printing, 1-3 day shipping

Printing Cost: $1,015
Design Cost: $425
Postage: $880
Total cost ……………….. $2,320

Small: $225
Medium:$295
Large: $375
Average Ad Space: $288

Total Revenue … $4600
Profit: $2,280
Margin: 50%

One of the most head-turning aspects of this type of campaign is the price per piece. The normal 10k 9×12 model costs an advertiser an average of 5 cents per piece (still a terrific bargain); but this model averages only 1.9 cents per piece due to it’s very low printing and delivery cost mixed with much higher volume.

Why 8.5×11 100lb cover and Not 9×12 14pt stock?

I’ve outlined using an 8.5×11 dimension because the cost of 8.5×11 100lb cover pushes your costs just low enough to price ads for an average of under $300 while keeping margin at 50%. If you jump to 14pt cardstock and/or 9×12 diumension, the average ad price breaks the $300 barrie (still a great bargain). I just wanted to show you that ads under $300 are possible even at large quantities and without sacrificing profit.

That being said, I personally still use 14pt UV stock as I feel it’s the most impressive stock to pitch with, but you may feel otherwise and would rather switch to cover stock (or even going completely with flyer stock for even lower pricing). If you want to upgrade the postcard part to a bigger size or thicker stock simply pay:

• $110 more to stay at 8.5×11 but use 14pt UV (raise prices 7% to cover cost … [average of $308 per space])
•  $180 more to upgrade to 9×12 14pt UV (raise prices by 9% to cover cost ….[ average of $313 per space])

Should You Use The 5/10 16 Hybrid Model?

This model won’t suit every marketers taste but it WILL make drastically improved differences. The advantages of it are impossible to ignore: You’re increasing volume by 50% to a hefty 15,000, while lowering pricing by over 40%, all while maintaining the same 50% profit margin. While distributing 15,000 flyers across different traffic points in town can be somewhat time consuming, it will only take you literally an hour or two per week to check and replenish as needed. This can be easily outsourced to a trusted family member or friend, and the rewards are well worth it.

There is however a situation where this model may definitely not suit you … and that’s if you plan to release multiple 5k or 10k standard campaigns in the same general area, where your cash profits can be double or triple as much. If you’re willing to put some planning into building a much stronger platform though, consider modifying the distribution part to different levels of distribution available, such as 5k mailing only, 5k mailing + 5k distribution to X traffic points, 5k distribution to X more traffic points, and even a further 5k. This allows you to get higher pricing that will directly increase margin, see here.