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It is going to get even costlier to acquire new buyers due to the fact that your break-even point has and will continue to go up. Let’s assume your incremental break-even point (defined as net sales less cost of goods sold, less direct selling expenses) was $1 per catalog mailed in January of this year. With paper price increases and the proposed postage rate increase in early 2001, your break-even point will increase to $1.12 (or more) within this one-year period. Let’s look at the facts.
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