User Newsletter Results > Responsible for Jan. Record Sales

[Mark]

We've done the research and the results are in. User newsletters were in fact mostly responsible for January's record sales.

Here's what our research has shown. In January, there were a total of 34 users who sent out newsletters. Of these 34 users, here were their sales in December:

5,095 Items Sold for a total of $63,205.91

In January, when they were sending out User Newsletters, here are those same 34 users' sales:

12,893 Items Sold for a total of $154,963.34

So, yes, the driving factor in January was without a doubt User Newsletters, and that was from only 34 sellers!

I think it is very clear that this feature is certainly worth the extra $15 per month! However, this single feature is such a significant help to sellers, and the site in general that we want to make it even more enticing (if the above is not enough alone). More than half the sellers using the feature in January, downgraded before the promotion expired. We would be interested to know, how many sellers who do not currently have a Featured Premium store subscription would commit to one if we lowered the price to $19.95 / month (only $10 more than a regular featured store). This wouldn't be a one month promotion, but the current set price for all sellers. If we can get enough sellers on board, we'll make the switch.

Post here if you would be willing to commit at $19.95 / month, and vote in the poll. If there is enough interest, that is what we will do. And if we can get more sellers on board than we had in January, who knows what sales records we'll hit soon!?

-Mark

[michael78651]

I downgraded, because the hospital and doctor bills have begun to arrive, plus I have mucho taxes to pay on top of that. I won't have any money to burn for a while. Plus looks like I have another body part giving me trouble, so more doctor bills are coming....

The problem with the featureed plus subscription for smaller sellers like me is that we may not always have the time to add sufficient new material to make it worth while. If buyers get weekly newsletters and they only see the same stuff they looked at the week before, they'll stop reacting to the newsletter. I could see issuing one newsletter each month or two depending on what I was able to add to the store. That's why I'm in favor of ad-hoc newsletters, but I would hold my store subscription at featured plus for $15.00.

[cocollectibles]

I did not downgrade to see if indeed the newsletter or my posting more auctions in January than in any other month, was more responsible for my tripling in sales revenue. So ... do I also get the $19.95 deal or only those that opted out?

[richd4549]

Mark, What percentage of January Newletter sales were fro Sadpig and his clearance sales?
Rich

[Mark]

Their sales were in line with everyone else. In December they sold about 500 items, and double in January - 1000.

Also, the $19.95/month subscription cost would apply to everyone, even those currently subscribed. If we can get enough sellers interested.

-Mark

[cocollectibles]

Count me in, Mark.

[kdwinton]

For me, the subscription is well worth it. I'm not so sure I'm going to be sending out newsletters all that often, although they do work well, which I will explain below. I have the subscription for the consignment tool which I use to let me know how sales are doing between various lots that I have purchased. I've always wondered exactly where I'm making my money and now I know, and can focus on that aspect of my business, invaluable!

I did send out a newsletter this past month and linked it to a 10% off sale for my entire store inventory. The newsletter was very easy to set up and load the emails in. Over 1850 emails went out and I did a month's business in five days. Now, after that, things returned to slightly above normal (sale was still in effect even for new customers). This tells me that the attention span of our customers is not much more than five days and that even with the great number of contacts, the percentage of them that bought was really quite low. I did manage to bring in a few new Stampwants customers with my mailing, so that helped. I encourage long-time sellers to do the same and bring in some more. I can see myself using the newsletters every couple months just to keep my store name out there but don't have that much new on a weekly basis to warrant a newsletter in my opinion.

I must say that the tools available to sellers here on Stampwants are superb and even the ones I have been slow to try are fantastic once I give them a whirl. I hope this post helps anyone considering the store upgrade.

Keith

[michael78651]

This is going to sound bad, but it comes from business 101 classes.

If we keep sending out sales after sales after sales with all sorts of discounts to the discounts, then that will become the expected norm from the buyers. In order to maintain sales, then sellers will have to establish the discount price as the regular selling price. The problem is that buyers wil continue to expect to see sales with discounts from the discounted prices. Therefore, as the sales are forced to continue, sellers will have to lower their regular prices to the new discounted sale price. This cycle will continue until the regular prices come to a point to where it is no longer profitable to sell. To raise prices back to the original discount level, will shut down sales and that's then end. Don't believe me? Stamp dealers long ago began discounting stamp prices from catalog values. Collectors by the vast majority will refuse to buy a stamp (rarities and superb grades not included) unless it is priced at a discount from catalog value. Car manufacturers today are having trouble selling cars, because they have run all sorts of sales gimmics for so long that the general public won't buy a car uless there's some sort of rebate, free financing, etc.. I forget what the market term for this is called, but those involved in sales must be careful about their pricing, or they will price themselves out of business.

Before the buyers clap for joy at this artifical market deflation, they must remember that it is not good for them either, because as sellers go out of business (car manufacturers, airlines from constantly discounting ticket prices, etc.), the number of sellers in that particular area grows smaller. When that happens, there is less competition, which means that if the buyer wants something being sold, the seller doesn't have to compete with as many others and can raise prices.

In the short term, it looks good, but in the long term....

That's enough class for today.

[Mark]

I would have to disagree with Michael Numbers. If you send out an email newsletter, as long as anything in it is of any substance, such as a decent sale, or even just new items, I think buyers will respond. I don't think there would be any need to continue to decrease prices. The main selling point is just the newsletter itself, bringing the items to the buyer's attention. Not just how much the items are on sale.

I think a good example of this is StampWants own newsletter. We've been sending out a newsletter about once a week for 4 years. Yet as you saw earlier this week we had over 450 users online after we did so, and there were over 2,000 items sold that day. Usually when we send out a newsletter we get hundreds, if no thousands of people (over the next day or so) to visit our website from our newsletter, and make purchases.

You can also look at sellers who have been sending out newsletters continually for at least a few months, or more. For example StampCPA sends out a newsletter every week for about a year, and they just announce new items listed, not anything on sale. They sell more than half their auctions each week.

So I don't think you need to create larger and larger sales, just new content. I mean every week you get "newsletters" in the Sunday paper as in the Sunday paper ads, and these have worked for decades, and stores haven't been reduced to giving things away at huge "sale" prices. So as long as you have new content, whether it be new items, or a new sale, you'll do very well with User Newsletters.

Car companies are different because they are trying to sell items which are usually half or so of a person's salary. I think if you look at any items under $100 you never really see incentives and promotions to the extent of cars. Again, just see the regular Sunday advertisements.

-Mark

[michael78651]

What I posted about pricing and sales and consumer expectations is contained and taught in business economics classes in college. It has been studied extensively by business economists and psychologists. The bottom line is that if you perpetually discount 25% off retail, then the discount price actually becomes the retail price in the mind of the consumer. To have a sale, that is perceived to be a sale by the consumer, the seller/store will have to make a discount price in excess of 25%, or the consumer will not accept the ad as being a sale. To end the 25% discount will be perceived by the consumer as a price increase. Notice, my comments are not about the perceptions or beliefs of the seller, it is all about the consumer, and what the consumer believes to be the norm is what is reality in sales.

[bennettoons]

I enjoy receiving these StampWants newsletters and peruse all of them for something that might interest me.

I don't know from squat about high-falutin' marketing theories -- but the newsletters are having their desired effect on me!

[michael78651]

That's fine, your collecting needs run a bit in the specialty area.

But, I'll bet you that if every seller here stopped putting items on sale, listed stamps at full catalog (remember that's retail price per Scott) and used a realistic starting price for auctions (no penny starts), and sent out newsletters, that there may be a large number of people coming to see, but sales would drop.

[khj]

Michael##### certainly has me figure out. I mentioned this before, Cheapskate here is not going to be one of your preferred buyers.

k

[Mark]

Michael,

Perhaps I was unclear in my post. I was not arguing what you were stating about sales. I was however stating that I do not believe that has any effect on user newsletters. My point was that the main benefit of a user newsletter is not to promote items are now on sale, and that weekly user newsletters do not add to the problem you described. A user newsletter is merely a form of advertising, just as listing items on sale is a form of advertising. However, they are two separate things.

Your argument makes sense why a seller should not have all of his items perpetually on sale for 25% off (which I agree with, which is why we only allow sales to last 30 days). But I do disagree that your statement (which is true) has anything to do with user newsletters. They are unrelated. Buyers do not respond well to user newsletters simply because items are on sale. That would be what the purpose of the sale is, not the user newsletter. A user newsletter is essentially exactly the same as a Sunday flier. It just reminds customers of what the store is offering, and highlights new items, as well as any new sales.

-Mark

[dianealthea]

I just got bumped off.

So here it is again.

I'd be interested in the lower price but have to give it a lot of thought.

Most of my sales goes to US collectors. And now I am branching out into worldwide. So sending out a newsletter to US collectors that I'm adding worldwide may not interest them. While my sales did indeed increase in January, they have now dropped, and I'm not 100% sure that my newsletter was the cause of the increase as I saw very few of my old customers buying, it might have been a filter over from other's newletters, though a few have popped back in and bought a few items.

I'm trying out auctions now, maybe I'll get the hang of it eventually and maybe that will spark an interest in worldwide. But right now, most of my US is listed, and once my customers fill that space they're likely not to come back. I'm not like StampCPA or others like him that goes out and buys other's collections so that I'm able to add different US stamps all the time. I have to build up a worldwide customer list unless, Mark, you have a wonderous idea on how I can reach out to them.

I sent out to 508 people, in comparison to my 10k+ feedback, that's a small portion of customers and I'm not even sure all received it. I didn't receive Michael's newsletter, so I'm wondering just how many received my newsletter.

I did just add 98% of the 2008 Europas and am beefing up my UN so maybe a newsletter after I'm done in that area would help. I am retired now and can add new every day, but its going to be mostly world wide, so my old customer list of US collectors will trash the newsletter. Hope you've got some input to help me out, Mark, and maybe some of the other little guys here in the same boat. I'm very much interested in doing another newsletter and like the lower cost idea but need input on how to reach WW collectors!