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The infomercial production process
A successful infomercial production will always start with a viable
product. A high quality manufactured, attention-getting packaging and
mass marketability are the following elements your product must have.
Then a company must find a experienced infomercial production
company. At this point the clients will present the detailed information
about the product. This also include the pricing and offers (the critical
elements in determining the success or failure).
In the infomercial production process budget is one of the most
important thing. The budget will determine the type of infomercial
production and talent they can afford in developing the infomercial.
Once budget is agreed upon, creative strategy begins. This includes
the script treatment, story boarding, talent selection, location scouting,
shooting and editing.
While these may seem very simple to determine, there are still
number of issues to keep in mind. While these may seem very simple
to determine, there are a number of issues to keep in mind. Obviously
the first is profit against the COGS (cost-of-goods-sold) number.
The COGS number is the total cost – including packaging – to
produce the product. It should also include the estimated DR cost-per-
sale amount (call center and media). Then add the cost of the credit
card processing, fulfillment, and lastly, estimated product returns.
Anything the consumer pays above that is the profit. This detailed
process is where some are surprised about the cost of a direct
response campaign and many often get into trouble if they have not
completed a proper analysis.
Also, on the positive cash flow side are the shipping and handling
fees. Often in the Direct Response industry, shipping and handling
(S&H) fees are significant profit centers for the advertiser. However,
viewers often believe those fees are “a given”, and only see “Plus
S&H”. They usually don’t add that to the price of the product when
making a decision to buy. Obviously the “actual” average shipping
costs nationally must be estimated prior to establishing the “published”
Shipping and Handling fees to be charged. These costs are
subtracted from the gross S&H fees, resulting in an additional profit.