Question One - Use the Consumer Figures Case Study numbers (in the Word doc) and determine from an overall profitability standpoint, which is better:

• The starting numbers in the case
• OR
• An offer of 2 Honeybell Cheesecakes for $79.00 with the following changes
• 1.05% Average Response, 50% COGS, $8.00 Fulfillment, and Response per Year of 16%, 13%, and 11% (No other changes)
• OR
• An offer of 2 Honeybell Cheesecakes for $70.00 with the following changes
• 1.15% Average Response, 55% COGS, $8.00 Fulfillment, and Response per Year of 17%, 14%, and 12% (No other changes)

LTV Case Study Consumer Figures: Bu Cost to reach a prospect $0.60 Average response 1.10% Average initial order $70.00 Average COGS 50.00% Initial Fulfillment Cost $7 Cost to reach a customer $0.50 Number of customer mailings/year Response per mailing year one 16.00% Response per mailing year two 13.00% Response per mailing year three 11.00% Time Value of Money Discount 20.00% Average repeat order $75.00 Average repeat COGS 50.00% Repeat Order fulfillment Cost $6