Can I get some advice...?

[Ankesh]

Thanks for asking Bea.

Some ideas:

1. Ask the newspaper delivery person to add your envelope to all the newspapers. That way - you just collect the orders and you pay someone else to do the distribution.

2. Here is a simple idea to test with pricing without getting a lot of complaints from current clients. Give two options, then cut the one you don't like after some time.

For eg: You could raise your prices from $120 to $150 easily for 5,000 distributions. So you could do this:
Option A: People pay $150 for 5000 houses
Option B: People pay $100 for 2500 houses

After a month or two, you get rid of option A. If your clients complain - you can simply tell them that the other option was better for your business. If the difference isn't much, most of your clients will switch to the other option without a lot of fuss.

(Btw, I think $120 and even $150 for 5000 is way too cheap. You should increase your prices. Most flyer distribution services charge close to 10 cents per flyer - or $100 per 1000 flyers - even if its co-op.)