Catalogers’ Profits Are Being Squeezed. Part 1 of 2

* circ was down 1 percent;

* response rates were down 1 percent; and

* average sale was up 2 percent and $/book was up 1 percent.

But the cost of postage increased dramatically (in some cases over 25 percent) and paper prices continue to rise at alarming rates. Paper typically accounts for half of the total printing cost. If a catalog’s circ remains steady year over year and response rates remain stable, but costs increase dramatically, isn’t a decline in profitability inevitable?