Focus On: Merchandising: Show 'Em Your Wares

Gross margin. Catalogs typically earn a gross margin that is in a range of 52 percent to 58 percent. In recent years, many organizations have dramatically in-creased the percent of imported products their catalogs carry, which has improved the initial markup.

Advertising costs. This is the total cost of creating, printing and mailing the catalog. As a percentage of net sales, it typically ranges from 25 percent to 35 percent. Admittedly, catalogs are an expensive advertising tool. But when well-merchandised offerings are sent to targeted mail-order buyer lists, they are the most productive way to sell product.