How to Determine Your Catalog’s Break-even Point
Two BEPs
Two BEPs can be used:
*an incremental (sometimes called variable) breakeven, and
*a fully absorbed BEP.
Mailings to prospects should be evaluated using an incremental BEP analysis. The fully absorbed BEP can be used to determine the effectiveness of mailings to your housefile. The difference between these two is that the incremental or variable breakeven doesn’t include fixed overhead expenses in the calculation, while the fully absorbed break-even calculation does.
- Companies:
- Lett Direct Inc.
Steve Lett graduated from Indiana University in 1970 and immediately began his 50-year career in Direct Marketing; mainly catalogs.
Steve spent the first 25 years of his career in executive level positions at both consumer and business-to-business companies. The next 25 years have been with Lett Direct, Inc., the company Steve founded in early 1995. Lett Direct, Inc., is a catalog and internet consulting firm specializing in circulation planning, plan execution, analysis and digital marketing (Google Premier Partner).
Steve has served on the Ethics Committee of the Direct Marketing Association (DMA) and on a number of company boards, both public and private. He served on the Board of the ACMA. He has been the subject of two Harvard Business School case studies. He is the author of a book, Strategic Catalog Marketing. Steve is a past Chairman of both the Catalog Council and Business Mail Council of the DMA. He spent a few years teaching Direct Marketing at Indiana University in Bloomington, Indiana.
You can contact Steve at stevelett@lettdirect.com.
