Variable, Not Fixed Costs
In this article, you’ll learn: How to calculate a break-even demand per catalog using variable costs.
As is evidenced by the multibuyer chart, every 25-to-36-month multibuyer generates an incremental $0.12 toward paying off your fixed costs. The effect of using fixed vs. variable costs generates an incremental $1.83 million in demand for one-time and multibuyers.
As a result, mailing the 13-to- 24-month one-timers and 25-to- 36-month multis will lead to more than $65,000 in incremental contribution, thus improving your catalog’s profitability.
- Companies:
- Michael Grant Direct
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