Strategy How to Use Selling Expense Ratios

By Stephen R. Lett

In my previous columns, I've talked a great deal about direct selling expenses — e.g., paper, printing, postage, list rental — and why these expenses need to be separated on the income statement. This month, I offer a slightly different twist by relating direct selling expenses to recency segments of the housefile. I'll demonstrate how overmailing the housefile can and will increase this key ratio, and why not all housefile segments should be mailed in every drop.