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CALCULATING MARKUP FOR A PROFITABLE INFOMERCIAL

  • Its important to calculate your product markup ratio before initiating your infomercial campaign.
     
  • A 5:1 markup ratio or better is necessary to insure that your infomercial campaign is profitable.
     
  • If you divide your retail price by your cost of goods you can calculate your product markup.
     
  • If your markup falls below 5:1, then it generally becomes more difficult to get your infomercial campaign to pay out.
     
  • Certain higher price point products can sometimes operate at a 4:1 markup and generate a profit, but it's best to initially try to attain a 5:1 markup.
     
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