How to Develop a Profitable Merchandise Mix

For example, a 120-page catalog costs $2 to print and mail. Using a mail quantity of 100,000, multiply $2 x 100,000 for a total cost of $200,000.

Divide the $200,000 by 20 percent to determine what the catalog needs to generate — $1 million.

Divide $1 million by 118 pages (not counting the front cover or inside front cover due to editorial space and other non-product information), and you have your results: Each page must generate $8,475. This number can serve as a benchmark for your merchandisers.