Understanding Catalog Financial Models

All employees in a catalog company should have a reasonable understanding of what drives financial success and how the numbers work in a profitable business. But they should understand the basic catalog financials, such as what a financial model is and how to use it as a benchmark; how to use the financial model to better manage the business; what goes into a profit-and-loss statement and who is responsible for each part of the P&L, the practical uses of financial modeling and the P in managing a catalog business. Examples of financial models for three types of consumer catalogs: gifts/ hard goods, apparel, and electronics are presented.