Suppose that you have in front of you a report on your past price promotions. You are supposed to give a presentation to your boss to explain whether those promotions were effective. In particular, there was a direct marketing campaign in which your company mailed potential customers discount coupons. If a consumer uses the coupon, then the margin will be $6. Your company mailed 10,000 potential customers, and the total cost of mailing them was $20,000. All these customers did not have any business with your company before they received the coupons.

Of 10,000 customers who received the coupon, 3,000 new customers made their first orders with your company. Based on the past data, only 30% of newly acquired customers place their second order, and the remaining 70% no longer make orders. To re-capture businesses with this 70% of newly acquired customers, your company sends out a brochure, without discount offer, three times, once a quarter. Each mailing of the brochure costs 75 cents. About 15% of customers who received the regular-priced brochure place their orders, each of which brings your company $8 of margin.

About 80% of second-time customers return for their third order, becoming the loyal buyer, while the remaining 20% do not make any more businesses with your company. 90% of loyal buyers come back to your company for further orders, while remaining 10% of them stop making orders. There is a pattern among your customers that all of first- and second-time customers purchase only the regular service and, after their third orders, loyal buyers utilize your companys premium service, which has $12 margin, 70% of time and regular service 30% of time. Assume that customers make orders once every quarter and that the quarterly discount rate is equal to 0.99.

1What is the expected per-period gross margin from a loyal buyer? Round your answer to the nearest cent.