Learn to Prospect Efficiently

If we spend $1,337,204 on direct selling expenses, gross sales need to be $3,515,116 or $1.62 per catalog mailed to break even. We need to generate 56,242 orders, in our example.

To determine our break-even point, we start by dividing the direct selling expenses plus the variable operating expenses by the gross margin percentage. This gives us our net sales goal.