This ratio easily is converted to a contribution-to-space ratio by using your contribution for each category instead of your net sales — or to a margin-to-space ratio following the same principle. This formula conversion is helpful if you have a category that has high net sales but a low margin, or vice versa. The same ranges outlined in the accompanying charts still apply, but you’re now analyzing contribution or margin rather than net sales.
- Companies:
- J. Schmid & Assoc.
A columnist for Retail Online Integration, George founded HAGUEdirect, a marketing agency. Previously he was a member of the Shawnee Mission, Kan.-based consulting and creative agency J. Schmid & Assoc. He has more than 10 years of experience in circulation, advertising, consulting and financial strategy in the catalog/retail industry. George's expertise includes circulation strategy, mailing execution, response analysis and financial planning. Before joining J. Schmid, George worked as catalog marketing director at Dynamic Resource Group, where he was responsible for marketing and merchandising for the Annie's Attic Needlecraft catalog, the Clotilde Sewing Notions catalog, the House of White Birches Quilter's catalog and three book clubs. George also worked on corporate acquisitions.