Cost-cutting Tips You Can Take to the Bank

TWELVE

Don’t Reduce Pages

Maximize page count. Pages, i.e., more merchandise, do increase the amount of revenue generated per catalog mailed. The revenue per catalog mailed will increase at half the percent increase in page count. Assuming there is plenty of “good” merchandise to sell, adding pages makes good economic sense. Adding pages while making certain the paper and press manufacturing are efficient can lower your incremental break-even point while increasing revenue.

Always maximize page count without increasing your postage costs when you can. Once you’re required (by weight) to mail at the pound rate, using the right paper and page count combination can help minimize the increase. It’s possible to circulate the same number of pages (or more) for less money. As you increase pages, consider reducing the basis weight of the paper you’re using in order to reduce and leverage costs.

Stephen R. Lett is president of Lett Direct Inc., a catalog consulting firm specializing in circulation planning, forecasting and analysis, and a regular columnist for Catalog Success.

Sandy Wolstencroft is vice president of Lett Direct where she is responsible for all circ planning, execution and analysis. Having joined the firm in 2002, she previously was marketing director at Petals and had prior stints with dressbarn and Bedford Fair Industries. You can reach both of them at (302) 537-0375 or via their Web site www.lettdirect.com.