"Dona Dollar," fresh Financial Product, Developed by Tony Gracia, CFO, Power Media Group, finally is in the market and many businesses would have a platform to avoid its annual losses in revenues," commented Gracia.
Annual losses are estimated in excess of $16 billion according to the University of Florida
Tony Gracia, CEO and CFO of a rapidly growing advertising agency in Santa Clarita, Calif., was honored for his professional accomplishments in driving the eight-year-old firm's sales, marketing and financial operations. After ten years of working in the advertising and broadcast industry, he understands the need of a financial product that can help companies avoid losses in revenues. He introduces "Dona Dollar"- to avoid Revenue Lost by Catalog Sellers, Direct Sellers Over Undeliverables and Returns.
"The frustration that companies have resulting from misdirected and lost mailings translates into significant money on the bottom line - revenue loss that can finally be avoided with our payment system called, "Dona Dollar."
According to a recent study undertaken by PriceWaterhouse Coopers and the United States Postal Service (USPS), on average, approximately 23.6 percent of all mail is incorrectly addressed and requires correction of some kind. An additional 2.7 percent is completely undeliverable.
The USPS currently charges a minimum of $0.21 per mail piece for its address correction service. For a one-time mailing of 10,000 pieces, this could potentially add another $500 to the cost of mailing. Manual corrections more than triple this cost.
Bulk parcels returned as undeliverable cost nearly $2.00 per item. For items sent via delivery services like UPS and FedEx, the cost is $5.00 per item.
"It isn't difficult to see how these costs can add up in a very short time, diluting profit margins and potentially damaging customer relations," said Gracia.
Return fraud, or sometimes referred to as "refund fraud" or "refund theft," is one of the fastest-rising problems currently experienced by retailers.
Annual losses are estimated at well over $16 billion, according to recently released surveys conducted by the University of Florida (NRSS), National Retail Federation (NRF) and various other loss prevention organizations. "Dona Dollar," fresh Financial Product, Developed by Tony Gracia, CFO, Power Media Group, finally is in the market and many businesses would have a platform to avoid its annual losses in revenues," commented Gracia.
Return fraud, compounded with inventory shrinkage - estimated at $34 billion lost annually - results in an even greater dilemma for the retail industry to endure which exceeds $50 billion in lost revenue and profits each year.
A survey conducted by the National Retail Federation states that returns can account for 10.6 percent of sales. Depending on the store and its geographical region, the percentage could be much higher.
"In other words," asked Gracia, "will the income you receive on the retail margin from catalog sales, added to the delivery charge paid by each customer, outweigh the costs of providing the service? Do you take into consideration other factors that affect your average delivery business or your average delivery charge?"
Gracia details the factors that can - and should - be considered as part of company losses, if there isn't an immediate solution:
-- A portion of your time, or staff time, can be spent double-checking delivery rounding
-- A portion of IT costs, if you operate a computerized rounding system including peripheral costs such as printer cartridges, paper, labels and stamps
-- Those who operate a manual system can include the cost of replacement materials
-- Employment costs including recruitment costs when you need to advertise for new staff
Tony Gracia, CEO and CFO of a rapidly growing advertising agency in Santa Clarita, Calif., was honored for his professional accomplishments in driving the eight-year-old firm's sales, marketing and financial operations. After ten years of working in the advertising and broadcast industry, he understands the need of a financial product that can help companies avoid losses in revenues. He introduces "Dona Dollar"- to avoid Revenue Lost by Catalog Sellers, Direct Sellers Over Undeliverables and Returns.
"The frustration that companies have resulting from misdirected and lost mailings translates into significant money on the bottom line - revenue loss that can finally be avoided with our payment system called, "Dona Dollar."
According to a recent study undertaken by PriceWaterhouse Coopers and the United States Postal Service (USPS), on average, approximately 23.6 percent of all mail is incorrectly addressed and requires correction of some kind. An additional 2.7 percent is completely undeliverable.
The USPS currently charges a minimum of $0.21 per mail piece for its address correction service. For a one-time mailing of 10,000 pieces, this could potentially add another $500 to the cost of mailing. Manual corrections more than triple this cost.
Bulk parcels returned as undeliverable cost nearly $2.00 per item. For items sent via delivery services like UPS and FedEx, the cost is $5.00 per item.
"It isn't difficult to see how these costs can add up in a very short time, diluting profit margins and potentially damaging customer relations," said Gracia.
Return fraud, or sometimes referred to as "refund fraud" or "refund theft," is one of the fastest-rising problems currently experienced by retailers.
Annual losses are estimated at well over $16 billion, according to recently released surveys conducted by the University of Florida (NRSS), National Retail Federation (NRF) and various other loss prevention organizations. "Dona Dollar," fresh Financial Product, Developed by Tony Gracia, CFO, Power Media Group, finally is in the market and many businesses would have a platform to avoid its annual losses in revenues," commented Gracia.
Return fraud, compounded with inventory shrinkage - estimated at $34 billion lost annually - results in an even greater dilemma for the retail industry to endure which exceeds $50 billion in lost revenue and profits each year.
A survey conducted by the National Retail Federation states that returns can account for 10.6 percent of sales. Depending on the store and its geographical region, the percentage could be much higher.
"In other words," asked Gracia, "will the income you receive on the retail margin from catalog sales, added to the delivery charge paid by each customer, outweigh the costs of providing the service? Do you take into consideration other factors that affect your average delivery business or your average delivery charge?"
Gracia details the factors that can - and should - be considered as part of company losses, if there isn't an immediate solution:
-- A portion of your time, or staff time, can be spent double-checking delivery rounding
-- A portion of IT costs, if you operate a computerized rounding system including peripheral costs such as printer cartridges, paper, labels and stamps
-- Those who operate a manual system can include the cost of replacement materials
-- Employment costs including recruitment costs when you need to advertise for new staff
-- The cost of additional marketing materials when re-sending packages
-- Bad debts from customers who don't pay their CODs
-- Bad debts from customers who don't pay their CODs
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