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Home Business 7 - Start A Profitable CO-OP Mailing Service

Start up and operate a co-op mailing service from home and earn extra money by providing this high-demand service to others. This is a perfect home business opportunity that really works and it's easy to start with almost no money down.

How A Co-Op Mailing Service Works

There are thousands of mail order businesses around. One of the biggest expenses these businesses have is postage costs. These operators pay big money for postage and are always looking for ways to reduce this expense. Here's how you can help them.

A co-op mailing service does the mailing duties of mail order businesses. This involves preparing the mail by affixing address labels on them, stuffing envelopes with brochures, sorting and posting the mail.

The co-op service combines the mail pieces of numerous mail order businesses into each mailing envelope at the same postage as a single piece. In this way each mail order business pays a fraction of the postage price to the service. This results in a postage saving to the business even after the service adds their profit on to it.

How To Get Customers

Getting mail order businesses to partake of your service is easy as they all want to save postage costs. Simply place ads in mail order publications to get customers.

Pricing

Pricing to your customers is normally done per 1000 per brochure inserted. You must add up the labour cost (if you pay people to stuff envelopes for you) and the stationery cost and the postage cost plus any other costs you incur. Then add a mark-up of say 35% to the total cost figure. Then divide the amount by the number of brochures per mailing. This is what you will charge per brochure per thousand for your service. If a customer has two brochures to be inserted, then you charge twice that amount and so forth.

Example - Say you do mailing for 6 business, one brochure each:

Costs Per 1000:

Labor $200
Postage $300
Envelopes $150

Total Cost per 1000 = $650

35% profit = $227.50

Total cost + profit = $877.50

Divide by 6 brochures= $147.92

Thus you will charge $147.94 per brochue per 1000.

Usually the customer will supply the brochures. However, you can also offer to have it printed for them. If this is the case, you will need to connect with a reputable, cheap printing company. Do not forget to factor the printing costs into your calculations above.

If each customer had done the mailing themselves, they would each have paid $650 per brochure per 1000. By signing for your service, they will only pay $147.94 per brochue per 1000. They will thus make considerable savings by using your service. This will be your selling point to them.

Give this great home business opportunity a try. It could earn you thousands of dollars a month.