Bureau of Markets - Publications

Selling Your Products Through Mail Order

Customers shop by mail for convenience, time savings, privacy, fun, and access. A business by mail can offer a low investment and good results.

There are many farms and producers in Massachusetts that sell either their products or their services through mail order. Products sold through mail order in the Bay State include Gouda Cheese, a Hot Vanilla drink mix, Shiitake Mushrooms, Goat Cheese, Maple Products, fresh apples, coffee cakes, teacakes, smoked fish, candies and specialty sauces, to name a few. There are several examples of kits or specialty boxed complementary products - bread and preserves or bread and cheese or maple and pancake mix.

Mountain laurel wreaths or other craft items or ornamental products from your farm are also good mail order prospects. In addition, you may have a service, for example, snow plowing, tree removal, or compost delivery that would benefit from mail order techniques.

Deciding What to Sell - Food or Gifts

Unique gourmet foods, specialty foods and craft items, something from a "secret or family recipe," and healthy food items will sell better than products readily and widely available on supermarket shelves. Remember, food and beverages require special handling and packaging. It's best to start with items that aren't' too fragile and don't perish too quickly. It helps to a have beautiful product or product label, especially for food. Since they haven't tasted it, they have to buy with their eyes.

Choose a product that packs and ships well, that appeals to people's basic wants, that isn't widely available in stores, that is in some way unique, that you know something about and that has some mass appeal.

Gift items that classify as all-occasion gifts sell well, as do gifts for special occasions. The packaged product market often focuses on the holiday seasons.

Selling Foods, Gifts or a Service

You can ask the following questions: Is anybody going to want what you are selling; will getting or producing the product be a problem; and will you be able to sell a product for a lot more than it'll cost you to acquire the product, promote the product, and get the product in the mail?

What to Charge

The customer should bear the cost of the shipping; it's not worth it if the price doesn't reflect the cost of the shipping. The price must feel right to people, or they will not even consider ordering the product. Many people set the price of their product by totaling up what it costs to get it in the mail to the customer and multiplying that figure by three or four. Then look at how much others are charging and compare, and set your price.

Money Back Guarantee

If you are confident about your product you can offer the customer a guarantee or their money back. You should have a product that you don't think will be a problem, plus, most people don't ask for their money back, unless they are deeply dissatisfied. If over 15 percent of your customers take you up on the your money-back offer, there is something wrong with your product!

Method of Payment

It's simplest to accept check or money order. However, if your operation is of medium to large size, you may want to accept credit cards as well. However, most banks would like you to have been in business for a few years.

Shipping

The US Mail, UPS or Mail Boxes Etc. are the main choices for shipping, depending on the nature of the product. Refrigerated or perishable products can be packed with cold or frozen gel packs and sent overnight or "two day" using UPS. The box should be marked "perishable" so the product doesn't sit until the recipient's birthday party or special occasion when it is opened.

Advertising

The classified advertisement says a lot in a few words. It is the most widely used form of advertising for a mail-order business because it is inexpensive. Depending on the publications you choose to advertise in, you could pay between $1 to $7 per word, with most classified ads running about 20 to 30 words. You can use the ad to sell your product or to get inquiries that will give you a chance to send a mail order brochure and describe your products or services in more detail.

There are many places to advertise - think about who would be interested in buying your product and what they read.

When you advertise - use an attention-getting headline, use phrases instead of complete sentences, use words that appeal to the senses, (how it tastes, looks or smells), use simple language, and dynamic punctuation like dashes and exclamation points. Use abbreviations as much as possible. If you want people to get your mail order brochure, they are most likely to respond if it is free. If you do charge for a brochure or catalog, pick a round number like $1, $2 or $3, etc. for postage and handling. Some operations put a listing in the yellow pages.

Free Advertising

Advertising can be expensive, so you have to be creative. You can use a press release, a one or two page description of what you're doing and why it is interesting and unique and send to the editor of the local newspaper's food, living or business section. You can promote your product or services at the local PTA (Parent Teacher's Association) meeting or at your clubs or organization meetings. Keep track of your customers and send them a brochure next year.

Regulations

Department of Public Health
If it's food that you want to sell, the liability for product integrity is with whomever made it - it must be from a state inspected residential kitchen or commercial kitchen that has been licensed by the local Board of Health.
The Federal Trade Commission Mail Order Rule
This 1976 regulation is called the "30-Day Rule" and basically states that you have to ship the merchandise on time, either by the ship date advertised, or within 30 days of receipt of the order if no ship date was given. If you can't ship on time, you must give your customers a option notice, allowing them the option to cancel the order and at the same time, give a reasonable basis for the new shipping date.

Always keep good records so that you can document when an order was received in relation to when it was shipped. This FTC Mail Order Rule is the one rule all mail-order companies must abide by. Record keeping of when an order comes in and when it is sent out also helps to track any orders or address any problems.

Seller's permit

This is also called a so called "resale number" that allows you to purchase your inventory or the raw materials for your product from wholesalers without paying sales tax. But then you must remit to the government the sales tax you collect from customers on the product.

Check with the Massachusetts Department of Revenue: Taxpayer Assistance Bureau, Sales and Use Tax Unit, Leverett Saltonstall Building, 100 Cambridge Street, Boston, MA 02202 or call 617-727-4545 or 800-392-6089. Massachusetts Sales Tax is 5 percent. You need to obtain a Sales Tax Registration Certificate (Form ST-1) before you sell taxable items in Massachusetts. Most craft items and gift baskets are taxable and food items are not, however, it's best to call the Taxpayer Assistance Bureau. The filing fee is $10. Items sold outside of Massachusetts do not require sales tax.

Registering As a Business

Registering as a business in Massachusetts involves contacting several different offices. Generally, it's best to start with your local town or city hall. Explain what you want to do. Collect the necessary forms and then move on to the state and federal offices. The process may seem involved, but it is important that you cover all your bases.

Register at your town or city hall to get a "doing business as" certificate if you're doing business under a name other than your own.

Setting Up the Business

You need some space for your business to prepare the items as well as to pack them for shipping. There are other possible aids, however they are not a requirement for you to set up a mail order business. One asset would be a computer system. There are some with specific programs for mail order including The Mail Order Wizard 800-782-8278) or The Mail Order Accountant (510-444-7789). You may want a printer, and a postage meter. Most are made by Pitney Bowes and cost about $200 - $600 per year to rent. You may also fine a FAX machine and an answering machine useful. Many mail order companies have a post office box.

RESOURCES

Gift Basket Review - The magazine of the Gift Basket Industry is published twelve times a year. One year subscription $29.95. Ask for a free sample copy. Product information, manuscripts, letters and photographs should be sent to: Attention: Editor, and include the sender's full name, address and telephone. SASE required on all editorial submissions. All submissions are considered for publications. Gift Basket Review, 1205 W. Forsyth Street, Jacksonville, Florida, 32204.

Mail Order and Direct Response - a no nonsense success guide to learn the ins and outs of a lucrative business that you can start in your own home by Tonya Bolden. Published by Longmeadow Press, costs $4.95.

National Directory of Gourmet Basket Retailers - This directory is designed to expand sales to the gift basket industry and feature products in a resource that is regularly used by retailers for same-day gourmet basket delivery. There are over 10,000 subscribers. It offers an opportunity to expand your sales to new and existing gourmet basket retailers, to be recognized as a supplier serving the specialized market segment, and to receive a free copy of the directory to contact retailers and prospects directly. For more information call 207-846-0600 or FAX 207-846- 0657, or write to National Directory of Gourmet Basket Retailers, PO Box 1056, Yarmouth, ME 04096. A standard listing costs $50.


Markets	Bureau of Markets - Publications Selling Your Products Through Mail Order Customers shop by mail for convenience, time savings, privacy, fun, and access. A business by mail can offer a low investment and good results. There are many farms and producers in Massachusetts that sell either their products or their services through mail order. Products sold through mail order in the Bay State include Gouda Cheese, a Hot Vanilla drink mix, Shiitake Mushrooms, Goat Cheese, Maple Products, fresh apples, coffee cakes, teacakes, smoked fish, candies and specialty sauces, to name a few. There are several examples of kits or specialty boxed complementary products - bread and preserves or bread and cheese or maple and pancake mix. Mountain laurel wreaths or other craft items or ornamental products from your farm are also good mail order prospects. In addition, you may have a service, for example, snow plowing, tree removal, or compost delivery that would benefit from mail order techniques. Deciding What to Sell - Food or Gifts Unique gourmet foods, specialty foods and craft items, something from a "secret or family recipe," and healthy food items will sell better than products readily and widely available on supermarket shelves. Remember, food and beverages require special handling and packaging. It's best to start with items that aren't' too fragile and don't perish too quickly. It helps to a have beautiful product or product label, especially for food. Since they haven't tasted it, they have to buy with their eyes. Choose a product that packs and ships well, that appeals to people's basic wants, that isn't widely available in stores, that is in some way unique, that you know something about and that has some mass appeal. Gift items that classify as all-occasion gifts sell well, as do gifts for special occasions. The packaged product market often focuses on the holiday seasons. Selling Foods, Gifts or a Service You can ask the following questions: Is anybody going to want what you are selling; will getting or producing the product be a problem; and will you be able to sell a product for a lot more than it'll cost you to acquire the product, promote the product, and get the product in the mail? What to Charge The customer should bear the cost of the shipping; it's not worth it if the price doesn't reflect the cost of the shipping. The price must feel right to people, or they will not even consider ordering the product. Many people set the price of their product by totaling up what it costs to get it in the mail to the customer and multiplying that figure by three or four. Then look at how much others are charging and compare, and set your price. Money Back Guarantee If you are confident about your product you can offer the customer a guarantee or their money back. You should have a product that you don't think will be a problem, plus, most people don't ask for their money back, unless they are deeply dissatisfied. If over 15 percent of your customers take you up on the your money-back offer, there is something wrong with your product! Method of Payment It's simplest to accept check or money order. However, if your operation is of medium to large size, you may want to accept credit cards as well. However, most banks would like you to have been in business for a few years. Shipping The US Mail, UPS or Mail Boxes Etc. are the main choices for shipping, depending on the nature of the product. Refrigerated or perishable products can be packed with cold or frozen gel packs and sent overnight or "two day" using UPS. The box should be marked "perishable" so the product doesn't sit until the recipient's birthday party or special occasion when it is opened. Advertising The classified advertisement says a lot in a few words. It is the most widely used form of advertising for a mail-order business because it is inexpensive. Depending on the publications you choose to advertise in, you could pay between $1 to $7 per word, with most classified ads running about 20 to 30 words. You can use the ad to sell your product or to get inquiries that will give you a chance to send a mail order brochure and describe your products or services in more detail. There are many places to advertise - think about who would be interested in buying your product and what they read. When you advertise - use an attention-getting headline, use phrases instead of complete sentences, use words that appeal to the senses, (how it tastes, looks or smells), use simple language, and dynamic punctuation like dashes and exclamation points. Use abbreviations as much as possible. If you want people to get your mail order brochure, they are most likely to respond if it is free. If you do charge for a brochure or catalog, pick a round number like $1, $2 or $3, etc. for postage and handling. Some operations put a listing in the yellow pages. Free Advertising Advertising can be expensive, so you have to be creative. You can use a press release, a one or two page description of what you're doing and why it is interesting and unique and send to the editor of the local newspaper's food, living or business section. You can promote your product or services at the local PTA (Parent Teacher's Association) meeting or at your clubs or organization meetings. Keep track of your customers and send them a brochure next year. Regulations Department of Public Health If it's food that you want to sell, the liability for product integrity is with whomever made it - it must be from a state inspected residential kitchen or commercial kitchen that has been licensed by the local Board of Health. The Federal Trade Commission Mail Order Rule This 1976 regulation is called the "30-Day Rule" and basically states that you have to ship the merchandise on time, either by the ship date advertised, or within 30 days of receipt of the order if no ship date was given. If you can't ship on time, you must give your customers a option notice, allowing them the option to cancel the order and at the same time, give a reasonable basis for the new shipping date. Always keep good records so that you can document when an order was received in relation to when it was shipped. This FTC Mail Order Rule is the one rule all mail-order companies must abide by. Record keeping of when an order comes in and when it is sent out also helps to track any orders or address any problems. Seller's permit This is also called a so called "resale number" that allows you to purchase your inventory or the raw materials for your product from wholesalers without paying sales tax. But then you must remit to the government the sales tax you collect from customers on the product. Check with the Massachusetts Department of Revenue: Taxpayer Assistance Bureau, Sales and Use Tax Unit, Leverett Saltonstall Building, 100 Cambridge Street, Boston, MA 02202 or call 617-727-4545 or 800-392-6089. Massachusetts Sales Tax is 5 percent. You need to obtain a Sales Tax Registration Certificate (Form ST-1) before you sell taxable items in Massachusetts. Most craft items and gift baskets are taxable and food items are not, however, it's best to call the Taxpayer Assistance Bureau. The filing fee is $10. Items sold outside of Massachusetts do not require sales tax. Registering As a Business Registering as a business in Massachusetts involves contacting several different offices. Generally, it's best to start with your local town or city hall. Explain what you want to do. Collect the necessary forms and then move on to the state and federal offices. The process may seem involved, but it is important that you cover all your bases. Register at your town or city hall to get a "doing business as" certificate if you're doing business under a name other than your own. Setting Up the Business You need some space for your business to prepare the items as well as to pack them for shipping. There are other possible aids, however they are not a requirement for you to set up a mail order business. One asset would be a computer system. There are some with specific programs for mail order including The Mail Order Wizard 800-782-8278) or The Mail Order Accountant (510-444-7789). You may want a printer, and a postage meter. Most are made by Pitney Bowes and cost about $200 - $600 per year to rent. You may also fine a FAX machine and an answering machine useful. Many mail order companies have a post office box. RESOURCES Gift Basket Review - The magazine of the Gift Basket Industry is published twelve times a year. One year subscription $29.95. Ask for a free sample copy. Product information, manuscripts, letters and photographs should be sent to: Attention: Editor, and include the sender's full name, address and telephone. SASE required on all editorial submissions. All submissions are considered for publications. Gift Basket Review, 1205 W. Forsyth Street, Jacksonville, Florida, 32204. Mail Order and Direct Response - a no nonsense success guide to learn the ins and outs of a lucrative business that you can start in your own home by Tonya Bolden. Published by Longmeadow Press, costs $4.95. National Directory of Gourmet Basket Retailers - This directory is designed to expand sales to the gift basket industry and feature products in a resource that is regularly used by retailers for same-day gourmet basket delivery. There are over 10,000 subscribers. It offers an opportunity to expand your sales to new and existing gourmet basket retailers, to be recognized as a supplier serving the specialized market segment, and to receive a free copy of the directory to contact retailers and prospects directly. For more information call 207-846-0600 or FAX 207-846- 0657, or write to National Directory of Gourmet Basket Retailers, PO Box 1056, Yarmouth, ME 04096. A standard listing costs $50.