Catalogers’ Profits Are Being Squeezed, Part 2 of 2

(For part 1, click here.)

The catalog business is coping with the following factors, which are putting pressure on circulation response rates and profitability:

* An economic downturn that has slowed discretionary spending.

* The cost squeeze caused by major increases in postage and paper. These costs aren’t being offset by catalogers when they cut circ because the break-even hurdle of prospecting is too high.