I'm working on three (3) catalog modeling projects over the next six weeks. These projects have become a lot more important than in the past few years for three reasons.
- Response is down due to the end of the COVID-bump.
- Catalog costs are up and paper availability is sketchy.
- Cost of goods sold are up.
The optimal strategy isn't the twelve catalogs currently being mailed, but is instead 5 catalogs, though anywhere between 3 catalogs and 10 catalogs is close to optimal.
- The company mails 12 times per year, yielding in this case $11.00 profit under current circumstances (the prior answer, two years ago, was $14.10 profit).
- Two years ago, an optimal answer was between 3 and 10 catalogs.
- Today, with different cost constraints, an optimal answer is between 2 and 7 catalogs.