Bind-In Order Forms-What's the Best Strategy? (2,000 words)

If we use two pages of the catalog for the order form and how-to-order instructions, we have given up a minimum of $21,660 ($10,830 x 2 = $21,660) in gross margin dollars. It would cost $14 per thousand to print 750,000 bind-in order forms with an envelope for a total cost of $10,500. This means we would be giving up $11,160 ($21,660 - $10,500 = $11,160) of gross profit if we use two pages from the catalog for the order form as opposed to using a separate bind-in order form with envelope. In this example, this cataloger would have generated $11,160 more gross profit dollars with the continued use of the bind-in order form. This is for one mailing only. Consider the gross margin impact if this cataloger mails eight or nine times a year! Obviously, if only one page of the catalog had been used for the order form, the conclusion could be much different. This is for example only. The point is, the decision to use or not to use a bind-in order form is not always clear-cut and should include a similar gross margin calculation.