Tuesday, October 21, 2008

List Procurement Price Drop

For the first time in more that 20 years the prices have declined across the board for list procurement.

There is no doubt that the direct marketing industry on the whole is taking a big time hit as the economy goes sour. Yet we can all be sure that once we are though this mess the over all industry will rebound just fine. Until then, we are seeing some price dropping for buying lists not seen in over 20 years.

Permission based email business to business, the highest priced category too the biggest hit with a decrease of $12/M from lat year. Business to consumer lists were a close second dropping $11/M form a year earlier. This (BtoC) reflects the largest % rate drop of nearly 7%.

The smallest price decrease occurred with the attendees of consumer book buyers and public sector. That drop was only slightly more that half a percent. Public sector and newsletters are the next highest price categories with an average price of $174/M and $165/M. for newsletters this represents a $10/M drop.

The one spot that has not dropped here in the USA is the international lists because more US marketers are using them.

When asked about the general economic health lf the list industry, Statlists VP Kayle Plotkin was heard to say that with companies scaling back on their marketing efforts and tightening their budgets, it has become more difficult to negotiate list rental orders.

Mailers are being more careful about what they are mailing and even how much they are mailing.

Database and information services was one of the most active sectors over the last 3 quarters with a 64% increase in the total number of deals of 2007 levels yet nominal transaction values decline. Value for marketing and interactive services was off 60% over 2007 totals. That is totally amazing.

Larson note: If you can afford it buy a list today and negiotiate on the price. I can almost assure you that by next June you will not have this kind of leverage.

Howard Larson
Larson & Associates
Telesales & Target Marketing Professionals for new account acquisition
Making good businesses great and great businesses even better

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