Three Years and $3 Million to Break Even

The second break-even point occurs when a cataloger’s housefile has grown large enough for each mailing to generate enough profit to pay for mailing to the housefile and to enough prospects to replace housefile attrition. This is the second break-even point most new catalogers arrive at. Most catalogers choose not to stop at this second break-even point, but instead opt to continue prospecting, at a loss, well past it to grow the housefile.