Measuring Profitability Through Square-Inch Analysis: An Updated Approach

So the report format that’s used is as follows:
Page/ Item/ Sales/ Margin percentage/ Margin/ Page allocation/ Page cost/ Profit.

The next step is to group the items into product categories to determine which categories rank highest and lowest in terms of sales and profitability.

How can you translate square-inch analysis into planning the number of pages for your next catalog? Catalogers group their products into categories and rank the categories from most to least profitable. The first decision is whether to keep unprofitable pages. The next decision is whether to increase the number of pages that are profitable. Expanding or contracting the number of pages to fit the profitable merchandise is the shorthand method to set the number of pages for a catalog.