



The following three scenarios illustrate how Northwest Direct can increase
the profitablility of small direct response businessesSCENARIO
#1 (The perfect leveraged start into the direct response business)
Ken
is an energetic and creative entrepreneur with a massive desire to succeed. He has
a great new product that is perfect for direct response marketing. Through previous
corporate experience, he knows how to put together a successful direct marketing
campaign (to include a Web site.) He has some financial backing for product development
but money is definitely tight. The question is "how do I create the infrastructure
necessary to sell customers who respond with questions about my product, take customer
orders, process orders, ship product and handle all the customer service issues?"
There are two major problems here, one is cash. Ken simply doesn't have the money
to contract for a facility, buy more office furniture, buy and install a phone system,
establish an order processing capability through a bank, and hire and train operations
personal. Two, (even if he had the money) he doesn't have the time or mental focus.
His experience (and interest) is in developing ideas and marketing. The answer is
to leverage into the capability.
Ken contacts Northwest Direct. The facilities,
equipment, communications, computer systems and personnel are already in-place. He
sends product samples and we conduct extensive training with our Reps. This includes
the Reps using his product until they can fully understand and advocate its
benefits. It is then a simple matter to channel his customers into the Northwest
system. He then has a 100 percent fully functional, totally professional operations
team in place and almost no cost. On top of that, his recurring costs for these services
are fixed as a percentage of sales and are calculated to be less than in-house. In
addition, if he has a delay in getting started, he is not stuck maintaining an operations
team. If business slows for awhile, his operational costs drop proportionately. If
he wants to leave the business, there are no lease termination issues or equipment
to sell. Ken can just continue to do what he does best, develop new ideas and market
them!
SCENARIO #2 (An established business needs temporary direct
response support)
Rob owns a successful wholesale business. He has recently
acquired a new product line for which he wants to create a distributor network. His
plan is to conduct a direct marketing campaign for 90 days to sell inexpensive "Demo
Kits." From this, the hope is that a series of new distributors can be established.
The problem is that Rob is not set up to do a "retail type" order taking
and fulfillment business (and it makes no sense to create one since the project is
temporary.)
Rob contacts Northwest Direct. Within a few days, we are set
up to process "Demo Kit" orders and fulfill them to the end customer. Rob
wanted to handle customer inquiries in-house since his focus was on establishing
distributor relationships rather than just selling products. Since the project was
short term (only 90 days) he felt his Account Reps could handle what miscellaneous
customer service actions came up. We simply process his "Demo Kit" orders
and fulfill them to the customer. Rob doesn't have to spend a nickel on creating
an order processing/fulfillment infrastructure. In this case, he pays for Northwest
Direct's services through a small "per order" surcharge added to normal
shipping and handling fees.
SCENARIO #3 (An established direct response
business wants to move toward a "virtual corporation" business strategy.)
Frank owns a successful direct response business. However, he is massively tired
of personnel problems, technical equipment difficulties, and the high cost of maintaining
an under-utilized operations infrastructure during slow business periods. More importantly,
the operational details are continually dragging him down. He no longer can focus
efficiently on new product development and marketing. Frank is a smart businessman.
He realizes that if he allows his marketing efforts to deteriorate, his business
will die.
Frank contacts Northwest Direct. Although it is feasible to make
a complete operational transition to Northwest Direct very quickly, he is reluctant
to do so without being 100 percent certain they can do the job. Therefore, the next
marketing project is structured to go to Northwest Direct rather than in-house.
Of course, the new project was handled extremely well by Northwest Direct at a lower
cost than he was doing it in-house. Frank then decided to transition over the remaining
products and phase out his in-house system. In the end, Frank was able to completely
focus on creating new products and marketing. Operations functions were handled entirely
by Northwest Direct.
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