Fundamentals of Prospecting at Breakeven, Part 2 of 2
In part two of this two-part series on customer acquisition and the value of prospecting above breakeven, this week I’ll look at how catalog costs and merchandise margins affect your prospecting ability.
(To review part 1, click here.)
Some catalogers use an alternative breakeven, which includes the variable costs of fulfilling each order. These are costs incurred taking and fulfilling orders, including phone costs, call-center wages and wide-area telephone service (WATS) costs. Then factor in the cost of wages and shipping to pick, pack and ship orders, less any revenue collected for shipping.