How and What to Test Effectively

Let’s assume you wanted to test a new paper stock that has the potential to reduce your in-the-mail costs by $5/M. If you get $1.50 per catalog in revenue, and your test achieves $1.50, then your contribution to profit and overhead will increase by 33 percent. Postage costs will increase during the test phase, but you don’t factor it into the analysis; it won’t be there when you roll out.