How Much Does Door Hanger Marketing Really Cost?

July 17, 2017

Door hangers are powerful marketing tools you can leverage to promote your business. Before you invest in a door hanger marketing campaign, however, it’s important to understand how much door hanger marketing costs and what response rate you can expect. By doing so, you can predict your return on investment and make an informed decision about whether door hanger marketing is right for you. Below, we answer the following questions:

  • What are the benefits of door hanger marketing?
  • Will door hanger marketing work for your business?
  • How much does door hanger marketing cost?
  • How much does door hanger printing cost?
  • How much does door hanger distribution cost?
  • What is the average door hanger response rate?
  • How can you predict your door hanger return on investment?

door hanger marketing

What are the benefits of door hanger marketing?

Door hanger marketing benefits include:

  • Impossible to ignore: recipients must notice and touch them, and they won’t get lost in a stack of direct-mail
  • Targeted delivery: Door hanger marketing puts your message in front of likely customers
  • Cost-effective: Door hanger marketing is often cheaper than direct-mail
  • No limitations: You can print door hangers in any shape and size you’d like without incurring additional delivery charges associated with non-traditional direct-mailers
  • Add-ons: You can attach business cards, coupons, flyers, gift bags, candy, and other add-on’s to door hangers without incurring additional delivery fees
  • Trackable: You can use coupons and coupon codes to track door hanger response rates

Will door hanger marketing work for your business?

Just about any business can take advantage of door hanger marketing. Businesses that want to target local neighborhoods are obvious choices:

  • Restaurants
  • Automotive services
  • Real estate agents
  • Landscaping and lawn care services
  • Window cleaners
  • Contractors and roofers

All of these industries – and many other local-based businesses – have successfully marketed with door hangers. Service and retail sectors can use door hangers, and so can B2B businesses as well as nonprofit organizations.

What about non-local marketing? Door hangers can still be a viable solution. Target neighborhoods that match your best customer demographics, then use door hangers to drive them to your website or app.

Thus, the short answer is door hanger marketing can work for your business. Whether it will yield the ROI you seek depends on the following factors:

  • Targeting
  • The relevance and perceived value of your offer
  • Quality of design, copy, and printed door hangers
  • Total campaign investment

The first three have a direct impact on response rate; your investment dictates how much you net per sale.

door hangers

 

How much does door hanger marketing cost?

Your investment depends on your printing costs and your distribution costs. Add-on’s increase your investment, but for our purposes we’ll examine what a typical door hanger-only campaign costs.

Keep in mind that cheap isn’t necessarily better; the quality of your finished printed door hangers will play a role in your response rate, so you need to print high-quality door hangers at discount prices to maximize ROI (try printing on 14-point C2S cover stock for best results).

How much does door hanger printing cost?

The cost to print door hanger depends on size, quantity, and how many sides you’ll be printing on. Let’s say you want to print 4,000 door hangers on 3.5-inch by 8.5-inch 14-point C2S cover stock, full color on both sides. Your cost would be around $285 with PsPrint’s discount pricing.

How much does door hanger distribution cost?

You have several options for distributing door hangers, and your costs depend on which method you choose. Options include:

  • Professional door hanger distribution companies
  • Having your own employees distribute door hangers
  • Recruiting volunteers (and rewarding them with a pizza or cocktail party)
  • Do it yourself
  • Creative hires: High school and college students, Boy Scout troops (in return for a donation), and even homeless people have been employed to distribute door hangers

Distribution is typically priced per-piece, and the price drops as volume increases. For 4,000 door hangers, you can expect to pay a professional distribution company around 20 cents per door hanger – a total of $800.

Unless you’re experienced with copywriting and design, you might need to hire those out as well. You should be able to get these services for less than $250 total.

Finally, if you need demographic data you can use a service such as Neighborhood Scout. Plans start at $80 per month, which is plenty of time to map out your targeted neighborhoods for a single door hanger marketing campaign.

That means the total cost of our example campaign (4,000 door hangers) breaks down to:

  • $285 printing
  • $800 distribution
  • $250 design and copy
  • $80 demographic research
  • Total: $1,415

door hanger marketing costs

What is the average door hanger response rate?

Door hanger marketing response rate can vary significantly by industry, audience, and campaign: often, anywhere from 0.5 percent to five percent or more. However, most door hanger marketing campaigns yield one to three percent response rates – just like direct-mail marketing – so we’ll use two percent as the typical average.

How can you predict your door hanger return on investment?

Now that you know your door hanger cost and average response rate, you can predict your return on investment. There are two ways to think about ROI:

  • The immediate results of your campaign: For example, a restaurant sends out a coupon and tracks how many people use that coupon
  • The lifetime value of a customer: The restaurant tracks not only immediate response, but takes into consideration how much each customer is worth over their lifetime

 Let’s say a restaurant sends out 4,000 door hangers at our cost of $1,415. The door hangers include a coupon that, when used, nets the restaurant a $20 profit.

At an average response rate of 2 percent, the restaurant can expect 80 customers to take advantage of their offer. The gross for the campaign would be $1,600, with a net of $185. That might not seem like much until you consider lifetime value of a customer.

Now, let’s say the lifetime value of the restaurant’s customers averages $2,500. Those 80 customers are collectively worth $200,000 – not bad at all for a $1,415 investment!

Let’s look at another example. Let’s say a landscaper averages a $500 profit on every new customer, but only yields a one-half percent response rate from door hanger marketing. For 4,000 flyers, we can predict:

20 responses X $500 profit = $10,000 --$1,415 campaign cost = $8,585 net

In this case, the immediate response yields excellent ROI. The lifetime value of each customer would of course add to the total net over time.

Use the following formula to predict ROI, and play with different figures between 0.5 percent and 2 percent response rates to give yourself a reasonable range:

(TOTAL RESPONSES X PROFIT PER SALE) – CAMPAIGN COST = NET PROFIT

 Ready to boost sales with targeted door hanger marketing? Do it for less with discount door hanger printing services.

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About Brian Morris

Brian Morris serves in various capacities as a freelance writer, content developer and public relations specialist for growing small businesses. When he’s not writing, he can be found on the racquetball court - usually getting his tail kicked by guys 20 years older.

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