Strategy: Generate Extra Revenue While Leveraging Existing Overheard

Margins Up, Expenses Up
B-to-C catalogers traditionally have posted EBITs (Earnings Before Interest and Taxes) of around 5 percent. An EBIT of 10 percent to 14 percent has been more common for B-to-B mailers. But today, these profit margins are difficult to achieve. The combination of increased costs, harsh economic conditions and lower response rates is forcing catalogers to decrease circulation and make other cuts to maintain profitability.