- Do you offer merchandise you know will sell very well, and pay for the cost of mailing the pages out of your budget?
- Or, do you accept funding from the branded vendor, allowing them to feature their merchandise on your spread, incurring no paper/postage/printing costs?
Here's an example of what I'm talking about:
|Catalog Mailing: Spread Analysis, Circulation = 1,000,000|
|Regular Merch||Co-Op Funded|
|Less Marketing Costs||$16,000||$0|
|Less Fulfillment Costs||$6,528||$3,264|
|Variable Operating Profit||$4,672||$10,336|
|Demand / 000 Pages Circ'd||$40.00||$20.00|
Which spread would you rather feature in your catalog?
- The spread that causes 1,159 customers to purchase, generating $80,000 demand and $4,672 profit?
- The spread that is paid for by vendors, causing 580 customers to purchase, generating $40,000 demand and $10,336 profit?