Henry Ford Health Systems Emergency Care Door Hanger Campaign Detroit, MI
Understanding the true costs to door to door delivery / advertising / marketing / distribution
Remember price gets you what you pay for. Here are some basic cost breakdowns regarding the true costs for door to door advertising. (This is our guys going door to door delivering your door hanger, flyer, product sample, or any kind of marketing material.)
# 1- With a single crew member delivering approximately 80 pieces per hour. You will need 8 guys delivering 8 hours in a day just to get out 5,000 pieces. Now, there are obviously exceptions to the this rule. That main exception is density. But when you average out an 8 hour day, 80 pieces per hour is as accurate number.
Now using this math, to get out 10,000 pieces you will need approximately 124 + 10 hours to complete this job. (The plus 10 hours is the down time, not delivering, to go from one neighborhood, to the next. The down when sometimes having to wait for a supervisor to take them to another area. The breaks, and rest times throughout the day.)
Lets back out the math from here:
(Disclaimer: $8.00/ hr is generally the hourly wage for most states that have a minimum wage of $7.25. Other states like California, Oregon, D.C., Illinois, Massachusetts, Vermont, and Washington the math below will not work, as each of these states and D.C. have minimum wage of $8.00/ hr and greater.) As of 1/1/2012. For more information on State min. wage requirements see http://www.dol.gov/whd/minwage/america.htm this link for more information.
(124 + 10 (+/-) hours= 134 hrs.) x $8.00 per hour = $1072 just for labor. The additional 10 hours is to account for what we call “dead time”. This is the time it takes to get from one neighborhood to the next. These are the times crews may have to wait until they go to the next location. These are the breaks that are needed. No one is going to walk exactly 8 straight hours without one or a few of the above things happening. Your cost per piece just for labor is $0.1072 or approximately 11 cents per piece. Now we have not calculated the cost for the supervisor, and trust me, you want them paid more than $8.00 per hour, and they are. The cost of fuel, water, administrative, technology, and miscellaneous costs. You could be looking at a true cost per piece of up to or greater than $0.15- $0.17 just to get your job done. Being that we are a for profit corporation we obviously need to have a profit in there too, right?
You will hear delivery companies say they will do your job for $0.07 (7 cents) – $0.14 (14 cents) per piece. How is this possible? How can they do this? THAT’S EXACTLY WHAT I’D ASK IF I WERE YOU. Challenge the math, the obvious, and the common sense. OR, you can simply just hang up and call an industry leader who has nothing to hide.
When you work with these companies that charge these rates you are only getting out half and sometimes 1/3 of your material. If you do the math here, it’s really costing you $0.21 to $0.42 per piece.
Don’t be fooled by these companies. Get your delivery done right!
DMS Advertising, Inc. / Direct Marketing Services
www.DMSadvertising.net
1-877-499-1440
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