Fundamentals of Prospecting at Breakeven, Part 2 of 2
By
Jim Coogan
Facebook
Facebook
Twitter
Twitter
LinkedIn
LinkedIn
Email
Email
0 Comments
Comments
For example, if a catalog breaks even at $1.20/catalog, mailing 10,000 catalogs with a $100 average order breaks even with 120 orders. If the cost to take and ship each order is $6/order, then you need to cover $720 in variable costs to be at breakeven. If your margin is 50 percent or $6,000, then that margin is reduced by $720 to $5,280, or 44 percent — or $720/$12,000 in sales equals 6 percent. So margin is 50 percent less 6 percent — or 44 percent.
0 Comments
View Comments
- People:
- Jim Coogan
- Places:
- Santa Fe, N.M.
E
Jim Coogan
Author's page
Related Content
Comments