Once you test your short or long form commercial you're going to get instant results.
That's one of the great and unique aspects of direct response TV. You will know instantly what your sales results are.
You'll be able to make decisions based on knowledge you never had available before. This is why major Fortune 500 companies
as well as individual entrepreneurs are using DRTV as the number one choice for marketing. It works. You can make millions
of dollars virtually overnight. And unlike traditional advertising that creates brand awareness over a long period of time,
DRTV can accomplish brand awareness quickly and less expensively. If there are two similar products in retail, chances are the consumer
will purchase the one that was seen on TV!
Price points and how to determine which form your campaign needs
1. For short form the magic price point is either $19.95, or $29.95. (Hook N Hang, Snap Hook, Eurosealer, FlipFold).
Although there have been instances (usually in the beauty category as people are likely to spend more money on vanity)
that prices have been 4 payments of $19.95/$29.95 (IGIA Cellulift, Alexandria Body Sugaring, IGIA UltraClear, Inches Off).
You can also successfully test a 2-minute with a high price point if there is a successful infomercial already running for the same
product, because your viewing audience is now familiar with it. (AbSlide, Phase 4 Orthodics). A higher price point means you need
more sell time to convince your audience of the need, thus doing a long form format makes sense. In long form you can offer a payment
plan such as 4 easy payments of only $29.95 (the AbDoer, the Body Dome)
2. The second criteria is the amount of time you need to sell your product. Can you successfully sell your product in 2 minutes?
1 minute? Is it easy to demonstrate? Or do you need a well-developed pitch to tell the story and sell your product? If you need more
time you should choose the infomercial and increase your price point. For example, if it's a car wax that needs a ½ hour to sell, ad
d car wheel cleaner, new car smell, or other related products to get the price point higher and make the offer more valuable.
Doing both formats can be successful as well. For example Hook N Hang, a closet organizer started as a successful 2-minute spot.
We then increased the offer and made it a closet system, raised the price point and it became a successful ½ hour show. And vice versa. AbSlide is a successful ½ hour show that also has become a successful 2-minute show, but in this case, without changing the price point.
Know your break even point
Your breakeven point tells you how many units you need to sell per thousand dollars of media cost. We can also help you figure
it out with one simple phone call!
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