How to Profitably Use Mini Catalogs, Solos and Flyers

The target audience can be defined as narrowly or as broadly as your marketing dollars permit. Assuming the item’s price point is high and the cost of goods yields a strong margin, the response rate required to get a positive bottom line may be within reach.

For instance, say you have a price point of $900 and a cost of goods of 35 percent. If the mail pieces cost 50 cents each (quantity of 10,000), a quick break-even analysis indicates a 0.37 percent response rate. The chart “Example of a Break-even Calculation” uses inputs where you can enter the information and change the variables.