Key Performance Indicators: 10 to Track.

6. Selling expense to sales ratio, critical to your income statement. The zone for consumer selling expense to sales ratios is in the 25 to 30 percent range. For a business-to-business cataloger, the range is more like 18 to 20 percent of net revenue.

As you increase circulation to less productive names (e.g., prospects, older housefile segments), this ratio will increase. If you over-circulate catalogs, this ratio will increase, and your profits will decrease. Note: This is one way catalog companies get into financial trouble.