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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