Background:
A dentist desired to know if he was making money with
his various marketing strategies. He was advised to
gather his invoices for Yellow Page placements, Newspaper
ads, and direct mailing (design, info procurement,
printing, postage, and handling).
To calculate his Average Annual Patient Contribution
to Overhead (AAPCO), he was provided with a spread
sheet (to download this Excel spreadsheet, click
here).
Analysis & Implementation: Focusing exclusively on his direct mail strategy,
he determined his total costs to be $15,800, and his
AAPCO to be $915.92 (to see his calculations click
here).
Results: As he had already performed the direct mail service,
he was fortunate to learn that, indeed, the service
was paying off. More important, it gave him benchmarks
against which to measure, not only the direct mail
service, but any other strategy he might consider.
