Strategy: Generate Extra Revenue While Leveraging Existing Overheard
Get the edge against a difficult economy
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Gross margin ratios have been increasing the past few years. Not long ago, catalog companies operated on a 50 percent gross margin ratio (100 percent markup). Today it’s around 60 percent. The pressure to offer free shipping, coupled with cost increases — i.e., paper and postage — have forced catalogers to increase gross margin to remain profitable.
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