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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.
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Assumptions: |
Size of existing subscriber list |
10,000 |
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10,000 |
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Goal for number of total "completes" |
10,000 |
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10,000 |
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Requalification list penetration rate |
35% |
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50% |
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New Name list penetration rate |
25% |
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40% |
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Cost per requal from telesvc vendor |
$3.00 |
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$3.40 |
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$0.40 |
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Cost per new name from telesvc vendor |
$3.50 |
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$3.90 |
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$0.40 |
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Cost per thousand names from list vendor |
$200 |
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$200 |
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Requalification: |
Number of requal completes |
3,500 |
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5,000 |
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Telesvc Cost: |
Total requal teleservices cost |
$10,500 |
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$17,000 |
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$6,500 |
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New name: |
Number of new name completes |
6,500 |
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5,000 |
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Telesvc Cost: |
Total new name teleservices cost |
$22,750 |
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$19,500 |
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($3,250) |
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Total Teleservices Cost (both requal and new name) |
$33,250 |
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$36,500 |
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$3,250 |
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New name: |
Number of new name leads required |
26,000 |
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12,500 |
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List Cost: |
Total new name lead list cost |
$5,200 |
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$2,500 |
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($2,700) |
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Total Project Cost (both list cost and teleservices cost) |
$38,450 |
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$39,000 |
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$550 |
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Total Project Cost per Complete |
$3.85 |
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$3.90 |
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$0.05 |
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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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