Say you have an 80 page catalog. Say you sent the 80 page catalog to 1,000,000 customers. Say you generated $5,000,000 in demand. Say the 80 page catalog cost $0.50, and say that 35% of sales flow-through to profit.
Got all that?
If you know these facts, you can guesstimate demand at any circ depth and any page count. Here's a grid that represents our scenario.
And if we know ad cost and we know the profit factor, we can convert the table to profit ... and therefore determine the optimal profit / page count scenario.
At each page count the "optimal" circulation depth is colored red. In our example, the company seriously under-circulated, didn't it?
And in our example, more pages is better, isn't it?
But that's just one example. Frequently, fewer pages ... far fewer pages is better.
The most important thing is that you create these tables for each of your in-home dates.
You do this, right?
Contact me if you don't do this (email@example.com), and I'll help you set up a scenario so that you know the optimal page count and circulation depth.
Post a Comment
Note: Only a member of this blog may post a comment.