Leafletting: the problem and the solution

Perfect Windows

Free Member
Mar 7, 2011
107
47
Southampton
Hi,

I'm pretty new here and I've started by reading through pages (and pages and pages...) of back posts. I've had some very useful information so I thought I'd try to give something back. It’s a long post but hopefully worthwhile.

One thing that seems to come up time and again is trying to find a leaflet delivery company that can be trusted and that is cost effective. Well, I've been through this particular mill. My requirements were simple. I need to have 5,000 leaflets delivered every week, year round, to houses (not flats) in and around Southampton.

I called company after company. Predictably, only around half responded: Why pay for website, SEO and such like then fail to phone back the owner of a company with clear needs, timescale and budget? But that's another thread.

Of the ones who did respond, half of them looked and sounded like rip-off merchants. The other half seemed unable to cover all the areas I wanted covered or had a minimum of 10,000 a week ..or..or..or…

The rip offs offered me exactly what I wanted when I wanted it in the volumes I wanted. The following amalgamates the responses from three companies:

I was offered solus delivery (delivery with no other leaflets), any postcode area, for £25+VAT per thousand, £27 per thousand and £30 per thousand. Now, I've delivered leaflets,and I know that 120 an hour is a good average. So that has them paying someone for eight hours of work and still making a profit out of £25. Forgive me, but that's impossible without someone conning someone along the way. Either I’m being conned or the local distribution manager is conning the distribution company or the delivery person is conning the local manager. It’s not possible to pay minimum wage and get eight hours of work for £25. Some of the leaflets you have paid for simply have to end up in a bush or in a pile with a dozen other leaflets.

Con number 1: I asked for details about how they can make a profit at such a low charge and was told, “It’s economies of scale”. Well, forgive me, but there are NO economies of scale in solus distribution. When you boil it down, one person has to walk up one driveway and deliver one leaflet. That takes a certain amount of time that has to be paid for. Joke.

Con number 2: I asked how many houses (not flats) they would be delivering to by postcode sector (An example would be SO15 9 or B23 7). They sent me a nice spreadsheet with the numbers. Well, suspicious character that I am, I took a look at the 2001 census information for my home postcode sector, which breaks down into semis, detached, terraced, flats, etc. I already have this info at my fingertips as I use it for business planning. If you don’t already use it and you reach domestic customers, get it – it’s vital info. Anyway, their numbers were clearly including all properties in the postcode sector. I contacted them and asked them if they might have made a mistake and received an indignant response that their data was the most up to date possible, so I was wrong. Well, I happen to live in the sector I queried, and I know they haven’t nearly doubled the number of houses here in the ten years since the last census (they have been knocking down houses and replacing them with flats every year). The effect? Well, they were going to charge me for delivering 5,400 leaflets when they were actually going to deliver to 3,000. Suddenly my £25 per thousand is costing me £45 per thousand.

Con number 3: “How do you track that they have all been delivered?” I get a long spiel about managers visiting delivery people on their routes (all funded out of £25-£30 every 8 hours, remember) and interviewing random householders (same funding). I pointed out I have customers in the areas I was targeting so I could crosscheck and suddenly had a defensive “well, remember that sometimes people don’t remember what’s been delivered, so you might not be able to rely on them”. These words from the same person who just told me they interview people on their doorstep at random.

Give that a moment’s thought. My customers, who I would warn to look out for a delivery in a given week, would do worse than a stranger-on-the-doorstep response? Hmmm..


So, there are some of the problems. My solution? I placed an ad on Gumtree and had 40 responses in three days. The ad looked for self-employed leafletters at £6 per hour actually delivering. And here’s the thing. I stated that they must be prepared to carry a tracker. That way, I can quickly check that they are doing what they bill me for. All of those respondents were fine with it and the two I’ve taken on have the attitude that I need to protect my business, so it’s OK with them.

So, a slightly more messy solution: I have to think about the areas the guys cover and I have to spot check their invoices. I had to buy a tracker for £50 for each of them. However, I now have self-motivated people who know they are being adequately monitored. What they don’t know is that if they do a full month they will get a bonus for each call I have from their leaflets (I suspect a month will be the time they want to jack it in).

So, there IS a solution if you are prepared for a little hassle. However, I’ll pay quite a lot to get the things actually through people’s doors.

And, as of today after a couple of mornings from each subcontractor, I have five new customers for a total delivered cost of around £72. Very nice indeed.

As ever, all comments and questions welcome…

Vin Kennedy
 
Vin,

This is a detailed and very useful post that deserves more attention than it will probably get here.

Thank you for sharing your findings and solution.

Unfortunately there's no shortage of people trying to take money off businesses without offering a good quality service, and too many people want the pay the cheapest price without understanding the implications.
 
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Perfect Windows

Free Member
Mar 7, 2011
107
47
Southampton
Vin,
too many people want the pay the cheapest price without understanding the implications.

Yes, it's odd, isn't it? Businesses become infuriated when customers become fixated solely on price, yet in their dealings with suppliers, those same businesses do just the same.

Vin
 
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G. Lasagne

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Mar 12, 2008
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A Good post,

The only problem i see with paying per hour, is how fast they deliver, they may only deliver 80 per hour, would it not be better paying per thousand or pay 120 etc?

I have recently considered distributing leaflets for the first time in 3 years, but im thinking about putting them in places like:

Notice boards in blocks of flats/care homes
sandwich shops
dental surgeries etc etc

Im not going to deliver them door to door.
My plan is to have a list of sheltered accomodation buildings (privately owned) and if im in the area pop one on the notice board and also keep a load in the van for any occasion that pops up.

What do you think of that as apposed to door to door ?
 
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Dialagenie

Free Member
Jan 23, 2011
26
2
Berkshire
Thanks for sharing this Vin.

Any chance you could share details of the tracker you've mentioned?

As a start-up I have gone down the leaflet route to make homeowners aware of our service (Property Maintenance). Did most of the leaflets with the help of my good wife, two mates and myself - after similar discussions to yours with leaflet distributors.

Having done the legwork, up and down gravel driveways, barking dogs who want to take your fingers off for violating their private space, rude people etc etc. there is absolutely no business case in a £25-30 per 1000 solus service - just seems too good to be true.

I've been speaking to local postmen and most do a run of 400 to 450 houses in around 5 hours and there is no way they would do it for £15 a day, would they?

As we have been getting busier it is soon not going to be possible to do all the leaflet runs in person and its not the best use of my competences anyway.

So perhaps the most reliable and effective way would be to do something similar to what you have done. Which business owner would want to spend good money on print and paper for stuff not to be delivered?
 
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Perfect Windows

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Mar 7, 2011
107
47
Southampton
I can't post links yet, but mine are the Igotu GT-600. Look around and you'll find them for between £50 and £80(!).

I happened to choose them because Maplins were stocking them at £70 and I needed them quickly, so being available in the shop was crucial. The new ones, I got online from Expansys.

The reason I chose the 600 is that the battery life is significantly greater, and I take manufacturers' claims of batter life with a pinch of salt, so I wanted a big overlap.

My guys have them and send me a file with their movements on. It's also handy for tracking where we've leafletted.

There are PLENTY of GPS trackers out there; don't base your choice on mine, my research may not have been perfect.

Vin
 
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Perfect Windows

Free Member
Mar 7, 2011
107
47
Southampton
A Good post,

The only problem i see with paying per hour, is how fast they deliver, they may only deliver 80 per hour, would it not be better paying per thousand or pay 120 etc?

I have recently considered distributing leaflets for the first time in 3 years, but im thinking about putting them in places like:

Notice boards in blocks of flats/care homes
sandwich shops
dental surgeries etc etc

Im not going to deliver them door to door.
My plan is to have a list of sheltered accomodation buildings (privately owned) and if im in the area pop one on the notice board and also keep a load in the van for any occasion that pops up.

What do you think of that as apposed to door to door ?

Ref paying hourly: it's a compromise. If I pay by the house, they are not going to want to cover areas with long drives, yet I'm going to be overpaying for terraces. I think you'll find that there's a natural pace at which people walk. Dawdling is more tiring than going at your normal pace in my experience. Remember, I have a very accurate track to check, so I can see if they are just drifting about.

I've told them I expect an average of about 120 an hour and they have been achieving that. I've also pointed out that sitting down on a bench for ten minutes to have a sandwich and a flask of tea is a good idea (not charity, as I think it will keep up productivity overall).

I have no experience of return rates from noticeboards, etc, so I can't really comment...

Vin
 
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[FONT='Verdana','sans-serif']Hi Guys this is my first day on the forum great post. My industry is full of people who promise the world and literally deliver nothing! We set our business up following our own experience with bad delivery companies. The GPS trackers work really well and so does paying staff well. we charge £75 per thousand for solus and we get plenty of customers willing to pay it once we show them how we work so price isn’t such a problem as long as people see the value. [/FONT]
 
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Hi Guys this is my first day on the forum great post. My industry is full of people who promise the world and literally deliver nothing! We set our business up following our own experience with bad delivery companies. The GPS trackers work really well and so does paying staff well. we charge £75 per thousand for solus and we get plenty of customers willing to pay it once we show them how we work so price isn't such a problem as long as people see the value.
 
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Hi All
My brother does the same thing for his cleaning business; bought some trackers and took on some retirees who wanted cash and exercise!
Just a thought with what he does (although it does compromise the solus aspect) is that he charges other companies to deliver their leaflets, too (although not every time he does a leaflet drop). Thus, his charges are covered by the third parties.
So, just a thought!
Terri
 
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Katy Radcliffe

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Jan 25, 2011
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Hi All
My brother does the same thing for his cleaning business; bought some trackers and took on some retirees who wanted cash and exercise!
Just a thought with what he does (although it does compromise the solus aspect) is that he charges other companies to deliver their leaflets, too (although not every time he does a leaflet drop). Thus, his charges are covered by the third parties.
So, just a thought!
Terri

Does that mean he drops other flyers with his own? Most people want their flyers dropped individually. If there are two or more flyers on the door mat, the homeowner will likely toss them both.
 
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Jheath

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Aug 30, 2008
346
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Lincoln
Ok this thread is proving very appropriate for me right now, sorry to hijack the thread. Thanks for the amazing idea about the trackers it's pivitol in being able to ensure the work has been done, and as a basis for payment. I'm going to order some today!

PerfectWindows - I think your choice of tracker is spot on, you're too modest!

It's made me decide to recruit and train our own team, but that leaves a knowledge gap that I'm trying to catch up on quickly. If you google "leaflet distibutor manual" it seems there's a little industry going on, selling the "how to" knowledge of starting a leaflet distribution business. I'm not looking to do that exactly, but I do need to get our own 100,00 leaflets a year delivered cost effectively.

My plan is to pay around £50 / 1,000 to the distributors which is only a little saving compared to RM, and much more hassle. However it means we can pick areas much more effectively targetting particular estates or parts of small villiages instead of hitting whole postcode areas and wasting time and money on the wrong kind of properties. Also we'd get solus distribution whereas the RM is shared with several others.

Has anyone used any of these paid for manuals and are they any good? I need to create a distributors manual with the do's and don'ts to keep my distributors safe and ensure they are courtious to those they meet etc etc.

Even after using common sense the get the basics sorted out, there are still some gaps:
What is the best policy for homes with "no junk mail" stickers on the letterbox for example?
What paperwork do we need to ensure distributors understand they are self employed and need to declare their earnings to the taxman for example?
And there will be other potential pitfalls I haven't even thought of!
I guess that's why there are quite a few leaflet delivery franchises around, esentially selling this knowledge and a ready built business model. I'm not ready to do that, I'm sure a little research and some general business nouse will be sufficient - but others may disagree.

Another option is to charge other businesses for co-distribution. My current idea is as follows:
We pay our distributors £50 /1,000 for delivering our leaflet.
If we get another companies leaflet on board we could charge them say £28 per 1/000 and pay the distributor another £10 so they earn £60 / 1,000 but the cost for our own falls to £32. If we got two others on board the distributor would earn £70 and the cost to get ours done would be £14. Or three others and we'd get ours done for free and make a small contribution to our management costs.

We will be delivering throughout Lincolnshire Nottinghamshire and East Yorkshire (LN, NG, HU, DN15 - 40, PE1 - 13, PE20 - 25) so if this is of interest to anyone please let me know. Do people think £28 would represent good value? Hopefully potential customers will realise the distribution will be done with the same care and attention we demand for our own leaflets so returns may be higher than some of the ultra cheap commercial operators who sometimes have a poor reputation.


As ever, thoughts and ideas appreciated!
 
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Jheath

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Aug 30, 2008
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...ok on further research it seems maybe my prices and payscale is a bit ahead of the market. Leaving aside the rip-off merchants who exploit people desperate for cash, the going rate to pay distributors seems to be around £35 to £40 / 1,000 solus maybe adding £5 for each additional leaflet for shared. That means I could charge less to my carefully selected other companies for the idea of shared. Is this a bit nearer the mark?

I think we need to pay fairly well as we're talking houses with drives, not inner city flats or "coronation street". Also we need motivated distributors who will do a professional job, but we're "up in't north" where payscales are a little behind the south and south east.
 
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soundbite

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Mar 22, 2008
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What is the advantage to using these companies over Royal Mail. I thought Royal Mail would be a better option as thay can target various areas depending on your marketing plan.

Also what about going on the high street and getting someone to hand out leaflets there. Is this even an option? Maybe you can pay somone to stand outside a row of shops that sells similar products to yours or ones that compliment them.

Whenever I get a leaflet through the door it annoys the hell out of me and I just throw it in the bin.
 
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Jheath

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Aug 30, 2008
346
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Lincoln
What is the advantage to using these companies over Royal Mail. I thought Royal Mail would be a better option as thay can target various areas depending on your marketing plan.

Also what about going on the high street and getting someone to hand out leaflets there. Is this even an option? Maybe you can pay somone to stand outside a row of shops that sells similar products to yours or ones that compliment them.

Whenever I get a leaflet through the door it annoys the hell out of me and I just throw it in the bin.

For every person that throws leaflets in the bin there are plenty that read it and act on it. Clearly it works as a whole industry has grown up around it!

The reason to organise our own instead of using RM is that we can target individual estates / villiages instead of whole postcode areas. Also we can get leaflets out faster, cheaper and to our own timescales.

For us letterboxes are the answer instead of hand to hand in the street as it's targetted to homeowners who would be receptive to our marketing message. Hand to hand may be good for city centres, pubs, pizza, nightclubs, or in university towns where students are the target market.

Just my two penceworth...
 
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Does that mean he drops other flyers with his own? Most people want their flyers dropped individually. If there are two or more flyers on the door mat, the homeowner will likely toss them both.
Or the other side of the coin is that if a leaflet drop wasn't planned in a specific area, but someone wants to pay my brother to distribute leaflets, he can distribute his for the 1p each printing charge, he gets more business....
 
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mcgovern

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May 17, 2009
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What is the advantage to using these companies over Royal Mail. I thought Royal Mail would be a better option as thay can target various areas depending on your marketing plan.

Also what about going on the high street and getting someone to hand out leaflets there. Is this even an option? Maybe you can pay somone to stand outside a row of shops that sells similar products to yours or ones that compliment them.

Whenever I get a leaflet through the door it annoys the hell out of me and I just throw it in the bin.


To hand out leaflets in the street you would need a day street license
 
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Perfect Windows

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Mar 7, 2011
107
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Southampton
What is the advantage to using these companies over Royal Mail. I thought Royal Mail would be a better option as thay can target various areas depending on your marketing plan.

Also what about going on the high street and getting someone to hand out leaflets there. Is this even an option? Maybe you can pay somone to stand outside a row of shops that sells similar products to yours or ones that compliment them.

Whenever I get a leaflet through the door it annoys the hell out of me and I just throw it in the bin.

The advantage I see is that Royal Mail don't do solus delivery. Received wisdom in the business appears to be that the extra cost of solus is offset by the higher response rate.

As regards leaflets hitting the bin, there are a few points you need to remember:

  • Not everyone is the same as you. That's crucial to remember when you're carrying out any kind of marketing, or you'll just run campaigns that appeal to you when you should be running them to appeal to your customers
  • I've had plenty (and I mean plenty) of calls from people who start "I normally don't call from leaflets through my door but..."
  • between one on 200 and one in 250 people DO respond, so some of them must be reading the leaflets.
Vin
http://www.perfect-windows.co.uk
 
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LondonTone

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Jan 17, 2011
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I experimented with leafleting a couple of years ago at a time when I needed to contact the public direct. I'm not doing that now, but what I did then was to:
a) map out the areas I needed to cover; b) do it myself on a Sunday morning and; c) take my kids out with me and get them to do it too for a bit of pocket money.

I think I paid 'em £10 an hour. It helped my business, it gave the kids some money and it taught them that you don't get owt for nowt. I even had a friend of my lad with us on a couple of occasions.

Crucially, it also meant that householders (no flats) got my item on its own.
 
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Perfect Windows

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Mar 7, 2011
107
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I experimented with leafleting a couple of years ago at a time when I needed to contact the public direct. I'm not doing that now, but what I did then was to:
a) map out the areas I needed to cover; b) do it myself on a Sunday morning and; c) take my kids out with me and get them to do it too for a bit of pocket money.

I think I paid 'em £10 an hour. It helped my business, it gave the kids some money and it taught them that you don't get owt for nowt. I even had a friend of my lad with us on a couple of occasions.

Crucially, it also meant that householders (no flats) got my item on its own.

The challenge I have with your method is that I calculated that for me, my time is better spent out doing the work itself; paying someone else to deliver is cheap. Additionally, I can have 40 hours of delivery a week, something I could never manage on my own.

As regards target houses, in these days of cheap trackers, I can make sure the guys are hitting the right sort of place pretty easily. Also, as I'm not using an agency, I know who is doing the deliveries, so I've been able to select the type of person who I think will do the job properly.

Vin
 
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Perfect Windows

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Mar 7, 2011
107
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Southampton
Quick update:

We're now gaining customers at exactly the rate we can clean them, so this has all worked out beautifully. We're generating good quality leads at what I feel to be a low price. Now all we have to do is keep the customers happy...

Any suggestions for improvements (or other people's experience) would be welcome.
 
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Jheath

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Aug 30, 2008
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Lincoln
Quick update:

We're now gaining customers at exactly the rate we can clean them, so this has all worked out beautifully. We're generating good quality leads at what I feel to be a low price. Now all we have to do is keep the customers happy...

Any suggestions for improvements (or other people's experience) would be welcome.

You seem to have the distribution side sorted out nicely, how did you recruit your distributors and what kind of staff turnover have you found?

Also, doing your own distribution would allow you to test different creatives (leaflet designs) against each other. In order to increase your response rate you could design a new leaflet and have your guys deliver them to alternate properties. You'd need to be on the ball to monitor the response from each one (if you're response machanism is by phone, make sure you have a question that allows you to determine which leaflet they received). You'd soon know which worked the best, then try to improve on that further still, this driving down the cost per lead.
 
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C

C&V leaflet distribution

I was working with a team of our distributors last week and the window cleaner there also did leaflets ( not that we delivered them). His leaflets where A6 in size and was yellow. All it said was would you like your windows cleaned once a month, also what they would charge for cleaning all of the windows on the house the price was around £7 per house. Then it just stated to leave the card in there window and they would be round in the next couple of days. On the other side of the card all it said was yes please. The window cleaners delivered them themselves in all the streets that they where already cleaning any windows. I was surprised at how many people where taking up the offer.
 
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Perfect Windows

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Mar 7, 2011
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You seem to have the distribution side sorted out nicely, how did you recruit your distributors and what kind of staff turnover have you found?

Also, doing your own distribution would allow you to test different creatives (leaflet designs) against each other. In order to increase your response rate you could design a new leaflet and have your guys deliver them to alternate properties. You'd need to be on the ball to monitor the response from each one (if you're response machanism is by phone, make sure you have a question that allows you to determine which leaflet they received). You'd soon know which worked the best, then try to improve on that further still, this driving down the cost per lead.

We recruited them via an ad on Gumtree. We offered £6 an hour on a subcontractor basis and had to pull the ad after three days having had about 40 or so replies. I chose the two who had the gumption to look behind the ad and get our phone number. One is beginning to look flaky after about a month...

We're half way towards creating the second version of the leaflet. It's going to be radically different from the first one. A customer used to carry out major campaigns and said that invariably the ones that did well were the ones he didn't like. The current one is one I like, so we're trying something rather far away from it to see what the results might be. Then the plan is to use the one with the best response rate.

Another point on that subject, though, is that if leaflet A is deeply detailed and leaflet B is, say, "blokey", then both might work as well as each other but just work for a different subset of customer. Because of that, they are going to be delivered in blocks rather than random so we can alternate and see if that premise is true. Hopefully I've explained that OK.

It's all very complex but also very interesting...

Vin
 
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Perfect Windows

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Mar 7, 2011
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Southampton
I was working with a team of our distributors last week and the window cleaner there also did leaflets ( not that we delivered them). His leaflets where A6 in size and was yellow. All it said was would you like your windows cleaned once a month, also what they would charge for cleaning all of the windows on the house the price was around £7 per house. Then it just stated to leave the card in there window and they would be round in the next couple of days. On the other side of the card all it said was yes please. The window cleaners delivered them themselves in all the streets that they where already cleaning any windows. I was surprised at how many people where taking up the offer.

Wow! I like that. Very much indeed.

Thank you so much,

Vin
 
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Jheath

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Aug 30, 2008
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Lincoln
Another point on that subject, though, is that if leaflet A is deeply detailed and leaflet B is, say, "blokey", then both might work as well as each other but just work for a different subset of customer. Because of that, they are going to be delivered in blocks rather than random so we can alternate and see if that premise is true. Hopefully I've explained that OK.

It's all very complex but also very interesting...

Vin

You're ahead of the game on that too - why am I suprised?
I'm trying to get my head around A/B split testing in blocks rather than alternate, I can't help thinking alternate has the advantage because all the other variables are removed. Having said that I'm on my thrid glass of wine so it might (like me head) be clearer in the morning!
 
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Perfect Windows

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You're ahead of the game on that too - why am I suprised?
I'm trying to get my head around A/B split testing in blocks rather than alternate, I can't help thinking alternate has the advantage because all the other variables are removed. Having said that I'm on my thrid glass of wine so it might (like me head) be clearer in the morning!

I can see why you might be confused (apart from the wine, that is!)

We currently have a leaflet that's very technical and detailed . We're going to produce one much less detailed and with a picture of "the bloke who's going to clean your windows" on the front.

So, Detailed and Bloke leaflet will probably have different response rates. However, let's forget that for a mo and assume the same response rate. Despite the same response rate en masse, the individual people responding may well be completely different as the leaflets will/should appeal to different people.

If we alternate, then we won't know who had which leaflet, so when we hit the area again with the other leaflet, we'll be guessing as to whether we're delivering the same one (my delivery guys' record-keeping is unlikely to be accurate enough, to be blunt). By breaking it into blocks of houses getting Detailed and Bloke leaflets, we can try delivering the other one later to mop up the other type of responders. In answer to the charge that we should try to keep as much consistent as possible, I'm talking about blocks of houses, so people on different sides of the road may end up with different leaflets. It also makes tracking them when they call in a little easier.

It's all new to me but I'm very statistically minded so I'd like to try to find out as much as possible from every penny we spend.

All good points coming in that are expanding my thoughts on the subject.

Vin
 
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understandably most business owners dont trust leafleters, so do it yourself to know how long it honestly takes and how much walking is involved then youll know whats fair to pay for someone else to do it for your business, some of you say paying minimum wage for this is fine, ask yourself how much effort would you put in for mimimum wage to walk for hours a day doing a boring repetitive task ! you dont have a successful business if your success doesnt pass down to your employees and suppliers also, greed isnt good.
 
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