Revenue Lost by Catalog Sellers, Direct Sellers Over Undeliverables and Returns Recaptured by Fresh Financial Product, Developed by Tony Gracia.

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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

Santa Clarita, Calif. (PRWEB) November 17, 2009

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.

"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, 'Doña Dollar.' ('Mrs. 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.

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 catridges, 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

About Power Media Group Inc. (PMG) (http://www.powermediagroup.com)

The agency has received the following awards and achievements in the past year and so far this year:

. Winner of the Latin Business Association (LBA) 2008 Sol Award as Business of the Year, for its exemplary commitment to the Latino business community through leadership and service
. Commendations for its work from Los Angeles County Board Supervisor, Mike Antonovich as well as U.S. Congressman Howard "Buck" McKeon-25th District of California
. Small Business Administration qualification, under very strict guidelines, for a SBA real estate loan, which resulted in owning the firm's 11,000 sq. ft. commercial building that serves as a new home for clients and customers
. Winner of the 2009 ADDY Awards for Excellence in Creativity for a TV Ad in the General Market - Catalogue sales, for client Creativa Interiors-Primor
. Patricia Gracia, winner of La Opinion 2009 "Distinguished Woman" in the category of Business and Technology, for her steadfast commitment to serving the Hispanic business community nationwide
. Patricia Gracia, as an invited panelist to the Latin Business Association (LBA) 2009 Annual Conference and Expo, presented "The Transforming Role of Latinas in Business" (March 6, 2009)
. Patricia Gracia Nominated for the Santa Clarita Valley Business Leadership Awards 2009 (May 13, 2009)
. Patricia Gracia seclected by the San Fernando Valley Business Journal for Women in Business 2009 Award
. Tony Gracia nominated by the San Fernando Business Jounrnal as one of the Top Valley's CFO OF 2009

PMG clientele includes:
Creativa Interior-Primor
Hamer Toyota
Universal Music Latin and Video Distribution
Vivendi Visual Entertainment
Maya Entertainment
NYX Cosmetics
AB Underwear
New Concepts
The Herrera Sindell Group Inc.
Success Masters by Design
Underwear Station
Laboratorios Mallo
Finders Key Purse
Community & Mission Hospital of Huntington Park

For more information about PMG, visit http://www.powermediagroup.com/what.html. Reach Patricia Gracia call 661.268 4805 or 818.415.3230 (cell).

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