Our Value vs. Low Price Vendors: A Numeric Example

In the illustration below, it initially appears that we cost 40 cents more per complete than the value price competitor. However, we are nearly at parity on a total cost basis because of our higher list penetration.

Cost Category Line Item Description Value Price
Vendor
American
Pacesetters
Difference
(AP-LPV)
Assumptions: Size of existing subscriber list 10,000 10,000
Goal for number of total "completes" 10,000 10,000
Requalification list penetration rate 35% 50%
New Name list penetration rate 25% 40%
Cost per requal from telesvc vendor $3.00 $3.40 $0.40
Cost per new name from telesvc vendor $3.50 $3.90 $0.40
Cost per thousand names from list vendor $200 $200
Requalification: Number of requal completes 3,500 5,000
Telesvc Cost: Total requal teleservices cost $10,500 $17,000 $6,500
New name: Number of new name completes 6,500 5,000
Telesvc Cost: Total new name teleservices cost $22,750 $19,500 ($3,250)
Total Teleservices Cost (both requal and new name) $33,250 $36,500 $3,250
New name: Number of new name leads required 26,000 12,500
List Cost: Total new name lead list cost $5,200 $2,500 ($2,700)

Total Project Cost (both list cost and teleservices cost) $38,450 $39,000 $550
Total Project Cost per Complete $3.85 $3.90 $0.05

We provide the industry’s best overall combination of quality, service, and value.  As we say in our tagline, “We Commit.  We Deliver.  No Excuses.” We invite you to contact us to learn more about how we can help you achieve your subscriber goals.


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