How much should I pay for a sales letter?

Checking out the competition is always enlightening. I've been looking at websites of other copywriters and noticed a few publish sample fees for common jobs. Being a direct marketing nerd I'm always intrigued by the cost for a letter.

I'm amazed at the number of writers offering one or two page sales letters for £50. Even a cheap writer is only allowing two hours work at most at that fee. Yet the same people charge four or five times as much for a company brochure.

Here's the question - how can anyone get to grips with understanding your business, it's values, your products, why anyone should buy them, your customers, your target market, your competitors and so on; then actually write the thing in a way that convinces those target prospects to respond, all within a couple of hours?

More realistic fees for a researched letter, one that's more likely to get a good response, start around £250. That's about the same as a basic brochure. Think of it this way, the value isn't in the quantity of material, it's in what it does for you.

Or you can waste £50 plus the cost of paper, printing and postage.

So, if you need a letter or email to promote your business, my advice is to look for a copywriter who knows the difference between selling and telling. A marketing or agency background is usually a good sign. Direct Marketing experience is even better, but then I would say that.

VAT rules OK! or...how to avoid VAT on direct mail

Don't you just hate paying tax?

Tax on earnings, tax on savings, tax on spending. It feels like they get a cut of everything. But they don't.

The government kindly lets us off on "essential" things like food, postage and the print and fulfilment of mail packs in certain formats. What?

Yep, don't ask me why, but there are ways of avoiding the VAT on direct mail. I'm not just talking about charities here, I've done VAT free direct mail packs selling mortgages.

It's like getting 17.5% of your print and fulfillment budget back!
All you need to know are the rules. Sounds too easy doesn't it?

Well, there are no rules as such - but if you know how to make a strong case, your money is safe.

How it works
You need to have more non-VATable content in your mail pack than VATable.

Whats VATable
All envelopes (including enclosed, reply paid envelopes), anything addressing the recipient by name (that's "Dear Mrs XXXX" but not the address), anything that is designed to be kept (tear offs, gifts, samples), reply forms.

Whats NOT VATable
Anything ephemeral (read it-chuck it) and without personal salutation. So, flyers, brochures and letters with "Dear Customer" (yuk!) or no salutation at all.

There are more ways to argue for VAT free than you think
Agencies without much DM expertise will suggest stuffing a couple of flyers in with a personalised letter (to outnumber it), whether they are relevant or not.

The trick is to remember that you need to have more non-VATable content in your mail pack. That means that you can measure the comparative significance of VATable and non-VATable items.

For example, you also have a strong case if

• you have a non-VATable brochure conveying the bulk of the necessary information and the personalised letter refers to it

or

• your your non-VATable items are more of the total cost of the pack.

You can even make a case for a VAT free follow up postcard as long as the copy refers to the previous mailing eg. "Don't forget your car insurance. I wrote to you last month and...".

Just remember that these are strong cases, not rules. If in doubt, get your mailing house to check your pack design with their local Tax Office. A good mailing house will have a pretty good idea of what will fly and what won't.

One last thing, try to be consistent. Don't use one rule for the initial mailing and another for the follow up.

If anyone has had any different experience, or has some advice to add, please do leave a comment.

Good luck.