If You Were Buying A Catalog Today, What Is it Worth?

Back in late June, I wrote that “the big catalog conglomerates (BluStem/Orchard Brands, Potpourri Group, Cornerstone) keep acquiring more catalog titles because it makes their investment in efficiency even more profitable. But, you never see other catalog companies purchase online-only companies because those types of companies would not fit into their efficiency model – there is no synergy, no gains in productivity.” (Note: I wrote that before Camping World, a retailer and cataloger, acquired TheHouse.com, an online-only seller of sporting goods, so there are instances of catalogers buying online companies.)

I received an email a few weeks later from someone connected to the mergers and acquisition (M&A) industry that specializes in buying and selling catalog companies. She commented on the above quote: “That statement is somewhat correct but missing a small point we discovered as we have tried to help our clients acquire web-only businesses over the last year. They can buy a 5-9% EBITDA catalog company with a 4.5-6x earnings multiple. But, it is difficult to find a web-only business with 5-9% EBITDA and, even if you do, they go for 9-12x earnings multiple. I suspect none of the catalog private equity groups which you mentioned can fund that kind of acquisition metrics. Amazon is in an envious position with their stock price, impervious to lack of profits from their retail business.”

I’m not an M&A expert and don’t pretend to be, but let’s look at this from a few perspectives. For those of you not versed in the M&A vocabulary, let me explain a few things being said in the email sent me. A catalog with a 5% to 9% EBITDA, basically means that catalog is generating profits of between 5% to 9% of sales, which would be a very healthy catalog, especially if they had been able to maintain that level of profitability for several years. Once you start getting down below 5%, your catalog is generally not healthy, and is of little interest to being acquired by the private equity companies – unless they can get a really great deal. The buying price is “4.5 – 6X earnings”, means that if a catalog was generating $25 million in sales, and was generating 7.5% of sales as profits ($1,875,000), then the buying/selling price would range between $8,437,000 (4.5 x $1,875,000) to $11,250,000 (6 x $1,875,000).

This 4X to 6X profits multiple to determine the selling price (or value) of a catalog has been around for a while. I even checked with Jim Alexander (my mentor in many catalog related things) who confirmed for me that even in the heyday of cataloging in the 1990s, the multiple was typically 5X to 7X earnings/profits.

The second half of her email is more intriguing. She states that online-only companies have an inverse situation. Apparently not many of them are profitable, because it is difficult to find any with 5% to 9% of sales turning into profits, and when you are able to find such a company, the owners of those companies determined their value by a much higher multiple of 9X to 12X earnings.

Those of us merely on the sidelines can speculate that these online-only companies probably have an inflated view of their potential, each thinking/expecting that their business is the next Apple/Facebook/Google. Heck, they probably play foosball in the office and wear man-buns.

What do you think the reaction is when a cataloger that is in “acquisition mode” encounters one of these not-so-profitable online-only companies that thinks they are worth twice the multiple of the cataloger’s own business? Well, you can pretty much guess the reaction and comments: “Who do these guys think they are? I’ve spent 40 years in this business, building my catalog, going on endless press-approvals, countless buying trips to China, installed three generations of order processing systems, was a charter member of the DMA Catalog Council before they killed it, currently participate in 32 co-mail pools a year, helped start all 3 of the remaining co-ops with my customer file, and these guys have had a website up for four years, they don’t even know their 12-month buyer count, and they think they are more profitable than me? This is crazy!”

But, since I’m a history buff, let’s look at this from a historical perspective. Is it 1903 or 1923?   In 1903 there were 32,000 cars and trucks registered in the US, and 21 million horses. In 1903, most people would have probably thought an investment in a wagon/buggy company was a better idea than investing in a car company (although, that was the year that Henry Ford started the Ford Motor Company). In 1923, the number of cars swelled to 15 million, and the number of horses grew to 25 million.  There were probably still many in 1923 who thought that horses, buggies and wagons would never be displaced by cars. After all, the number of horses grew while the number of cars grew. A rising tide lifts all boats. Plus, all of the horse trade publications of the time featured articles on topics like “Manure Is Not Dead”, and “The Value of the Omnichannel Blacksmith”.

Sadly, for the buggy industry, 1923 was the year when the number of horses, buggies and wagons in the US began to drop, and we know how it ended. Today, there are 263 million cars and trucks on the road in the US alone, and only 3 million horses.

There is none so wise as to foresee the future or foretell how and when catalogs will end. Is 2017 equivalent to 1923? Picture yourself back then – without the knowledge of how cars would take off. You’d like to think that the 1923 version of you had the foresight to look around and say “Yeah, horses are dead. I don’t care how good a deal I can get on investing in a buggy company, cars and trucks are the way to go. And yes, I know that there have been literally hundreds of car companies that have gone out of business since 1900, but a few of these companies like General Motors, Ford, and Studebaker, look like they are going to be around a while.”  (So, you would have been 66% correct).

In my opinion, the question facing the catalog industry is not so much whether the online companies are worth a higher multiple. The question is whether catalog companies are still worth a multiple of 4X to 6X present earnings? You can see the handwriting on the wall. Consumers are migrating online and to mobile, the catalog co-op databases are dying, response rates keep trending down, and fewer and fewer catalogs are generating 5% to 10% earnings. No one can predict how much longer the industry has, but only the naïve would believe that better days are ahead. Would you invest here?

Maybe you would if there was still value in an acquisition which allowed you to roll a new catalog acquisition in with some existing brands and benefit from more efficiency. But, what to pay? The 4X to 6X earnings mantra doesn’t seem like a good ratio anymore if you know there is built in obsolescence to your acquisition.

And that is the problem I see facing the future of cataloging. The people working in those private equity firms looking for catalog companies to buy are not new to the industry. They have been doing this for a while. Like that mythical cataloger I mentioned earlier, they built this industry while building their business. They are not about to admit to obsolescence – they want the thrill of watching the order count grow on Cyber Monday. (They probably still check with the mail room to see how many mail orders came in). They just got a break from the USPS on mailing heavier books – how could that NOT be a great thing? After years of dreaming of moving the 3.4-ounce threshold up to 4 ounces, this is their moment of glory. They are going to mail more pages and not spend a minute on making their websites more effective, or adding any callouts in the catalog to drive consumers to the website. Print (just like manure in 1923) is not dead!

Meanwhile, they all remember what happened to Garden.com, and a host of other online-only companies that crashed and burned over the past 15 years. They know that Amazon had a one-in-a-million chance of surviving when it launched 20 years ago. They hang onto the last comment in the email above from the M&A analyst who wrote “Amazon is in an envious position with their stock price, impervious to lack of profits from their retail business.”  They see the irrational exuberance in the stock market as the so-called FAANG stocks – Facebook, Amazon, Apple, Netflix and Google parent Alphabet – have surged in value, while traditional retailers with real stores and real catalogs, have seen their value pounded in the market. And they think it is not only not fair, but crazy.

But that is the buyer’s perspective. What if you are the seller? You think that 9X to 12X multiple looks pretty good for those online companies. You think maybe you need to stop thinking like a cataloger and beef up your online presence.

Let’s continue this conversation….

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by Bill LaPierre

VP – Business Intelligence and Analytics

Datamann – 800-451-4263 x235

blapierre@datamann.com

 

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At The Start Of Every Disaster Movie, A Scientist Is Ignored

Last week was an interesting week for me. I did not mention it at the time because it did not seem like a big deal, but my posting last week on Ted & Muffy – A Sad And Cautionary Catalog Tale was the 300th I’ve done for this blog in my six years here at Datamann.

I bring that point up now because that posting had the highest open rate, and highest pass-along (forwards) of all my postings this year. Not bad for mid-summer when many people are on vacation.

In addition, I had 11 new subscribers sign-up the day the posting went out. That may not seem like much, but for a mature blog on a small industry, 11 new subscribers in one day is way cool, and way above average.

But here is what makes this all so interesting: I was writing about a catalog that tried to appeal to a new demographic, and failed in spectacular fashion.  I could see from my email tracking that many of you forwarded that email – probably to advocates within your own company of a similar strategy.

If I had written about some arcane aspect of catalog circulation planning, merge/purge processing or matchback, hardly anyone would have forwarded it, and I would not have gotten so many – if any – new subscribers.

But when I offer evidence of a creative catalog melt down, you jump all over it. It is beyond morbid curiosity – you don’t want the same fate to befall you.

I received an email from a reader that asked why I had waited until I saw Ted & Muffy’s final PDFs to comment on the odd and potentially disastrous creative direction in which they were taking the catalog. Why hadn’t I spoken up when the catalog was planning this new direction? Oh, that question was priceless….

As I’ve said in this space many times before, I’m not a catalog creative person. You would not want to mail a catalog I designed. But that doesn’t mean that after 30+ years of mailing catalogs, I can’t spot a pending disaster.

Mailers – and more specifically – my clients at Datamann, know this. They know I will tell them when they are making a boneheaded mistake. That is why they wait until the final files are due at the printer in less than two hours, to send me the PDFs of their catalogs.

They wait that long because they don’t really want to make any changes. They want affirmation that this year’s fall catalog is perfect. “Bill said it was great!” If I tell them there are problems, just like the scientist at the start of every disaster movie, my advice is usually ignored.

I do have two clients that send me copies of their respective catalogs, when it is pretty far along in the design process, but with still some time to make a few important changes if necessary. They ask me to look at it from a 30,000-foot perspective. I’m not reading copy or checking prices. I’m looking at the catalog the way a consumer would. Since both of these clients are based in the UK and mailing here in the US, I comment on things which they may not be familiar with here in the US.

Both of these mailers know what they are doing. They have been mailing a long time. They are not looking for me to nit-pick their catalog, but suggest obvious omissions or changes that if fixed, would drive response.  Most of time, I don’t find fault with anything. Sometimes, I will suggest changes to offers to make them more responsive to an American audience.

Here is the point. They don’t always agree with me. But, they want a catalog that drives response and drives sales. They usually make the changes I’ve suggested. They are not looking for affirmation of a job well done – they are looking for profits.

Of my 300 prior postings, my favorite was this one I wrote back in 2013 on the 150th anniversary of the Battle of Gettysburg (Pickett’s Charge and How I Became A Catalog Critic). It is the story of how I stood on the sidelines 25+ years ago when I worked at Brookstone and watched our Hard-To-Find Tools catalog be eviscerated. I learned from that experience that most people that want to make major creative and merchandise changes to a catalog don’t have a clue as to what they are talking about. They often don’t even have any “skin in the game”, and don’t have to share in the responsibly if the changes fall flat.

Here are the final two paragraphs from that posting – which are worth repeating:

“Finally, I learned that most people are too afraid, too naïve or not experienced enough to speak up. Business is not warfare. But, we have all experienced similar futile new business efforts similar to Pickett’s Charge. The question is, what do we do about it? As Pickett’s men marched across the Gettysburg field 150 years ago, some of them must have felt that they were doing their duty. Conversely, some of them must have felt that not only was this not a good idea, it was just going to be a slaughter. But those men could not complain – they just had to keep marching. You don’t.  When you see something happening to your website or catalog that just seems like it will lead to disaster, you have to speak up and take action.

One last thought – I have been critiquing catalogs and websites for more than 20 years. In all the speeches I’ve given, and all the catalogs I’ve criticized, I have only received one nasty-gram after the fact – and that catalog went out of business a year later for the reason I cited in my critique.  I have always been fair and factual in my commentary, and never personal. But, I also don’t hold back. You should not either – when your job and your company’s sales are on the line, don’t beat around the bush.”

 

Ya Snooze, Ya Lose – The Joys of Dynamic Pricing

This is part two of why last week was interesting. Sometime in early July, I put a pack of five solar eclipse glasses in my Amazon shopping cart. They were $5. On Thursday August 10th, I finally decided it was time to order them. When I opened my shopping cart, the price was now $20. Plus, my wife, with whom I share my Amazon Prime account, had a put some other stuff in the cart.

I waited until she got home from work that night to confirm she wanted the other items. When I finally went to place the order around 8 PM that night, the glasses were now $25. Plus, they were out-of-stock. They would ship on August 16th, and arrive on August 21 – the day of the eclipse. Since our UPS deliveries from Amazon don’t arrive until about 6 PM, the glasses would arrive about 6 hours too late.

I’ll be at the Datamann office in Vermont that day, probably hoping that it is cloudy, so that I won’t feel like I blew this big opportunity.

 

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by Bill LaPierre

VP – Business Intelligence and Analytics

Datamann – 800-451-4263 x235

blapierre@datamann.com

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Ted & Muffy – A Sad and Cautionary Catalog Tale

Most of you have an obsession with youth. You believe that the solution to your response problem is to appeal to a younger audience with your catalog. You have the 65-year-old woman in your back pocket, but you struggle to get her 35-year-old daughter to even look at you, let alone place an order. It is even worse if you appeal to a 45-year old, and you are attempting to acquire a 22-year old customer.

I’ve mentioned many times before that Datamann works with a number of UK-based catalogs mailing here in the US. They were all brought to us by a consultant with whom we work, who is based in London.

One of those companies was Duo Boots. Prior to 2015, they had a great catalog of nothing but women’s fashion boots, knee length and thigh length. These all-leather boots are handmade in England, and individually fitted to your foot and calf measurements.

Cool products, well made, great story and delightful catalog. For a fashion catalog, it did not stray from focusing on the products, the beauty of the products, or the craftsmanship of the boots. I’m usually not a big fan of editorial content in a catalog, but in their case, I thought it was well done. The book had a few design flaws (too much knock-out type), but in general, I loved their catalog.

Then in the fall of 2015, the Art Director sent me PDFs to review for the coming Fall season. They were repositioning the catalog to go after a younger audience. And, they were changing the catalog name to “Ted & Muffy – Fairytale Fitters”.

What? 

Below are a few of the spreads from that catalog in 2015.

I pleaded with the Art Director not to go in this direction. The consultant in London pleaded with them. Then we both begged them not to do it. We knew what the consequences were going to be. No one listened. In their mind, we were two old guys that did not understand how to appeal to the intended younger audience.

Aside from the totally bizarre creative direction, I was also concerned with the decrease in product density and a significant price increase. In addition, the products themselves were changing, with more “colored” boots.

The catalog mailed, and results, as you would expect, tanked. In 2016, they toned down the fairy tale aspect, and focused more on the boots, but still stuck with the new name of Ted & Muffy.

Sadly, things did not go well, and we learned earlier this year that the company had been placed under the administration of the bank, which luckily – and rather quickly – found new owners, that are keeping the business alive in the UK.

I’m sure there were many factors which led to the company’s downfall. The odd creative style is the most visible evidence of how the catalog drifted in a direction that alienated not only existing customers, but prospects as well. But pricing, product density, and overly trendy merchandise all contributed.

The point is this – it is really difficult to take an existing brand, especially one that is doing reasonably well (and they were doing well, at least here in the US), and think that you can acquire a totally different demographic by changing the creative, the mailing list and even the merchandise. If you are going to do all that, it’s probably better to just start a new title, and protect the core business.

I received the email below a few weeks ago. Duo Boots is back. Ted & Muffy, at least the name and the funky styles are gone. The new owners cannot be held accountable for the mistakes of the past, and I wish them well with the business.

Let the catalog brand positioning lesson of Ted & Muffy be a cautionary tale to any of you who are thinking that you can wave a magic wand over your catalog and suddenly get a younger consumer to be your new customer. It ain’t going to happen.

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by Bill LaPierre

VP – Business Intelligence and Analytics

Datamann – 800-451-4263 x235

blapierre@datamann.com

 

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The Coming Mobile Tsunami

Let’s get this out of the way right at the start – I don’t like the word tsunami. In my day, it was a “tidal wave”.  And that is the start of our problem – some marketers just can’t accept change.

If you have been a reader of this blog for a while, you know I have never given an endorsement to a 3rd party, except for the speakers I’ve had at our annual catalog seminar, including Amy Africa, Kevin Hillstrom and Frank Oliver. I also don’t believe in citing research published by 3rd parties, especially the DMA and the Postal Service, whose data, in my opinion, is always suspect.

I’ve been asked many times by other vendors to give their product or service a plug, but that is not the purpose of this blog. I want you to think about growing your business – I don’t want to always be giving you a sales pitch, not for Datamann, and especially not for some other company.

However, I’m making an exception today. Carole Ziter, from Trigger Email Marketing, sent me some original research that I want to share. I’m doing this for three reasons:

  • I’ve known Carole since 1991, when we began serving together on the Board of the VT/NH Direct Marketing Group. Last fall, I had the honor of presenting Carole with that Group’s Lifetime Achievement Award.
  • Carole and her husband Tom have helped me a number of times in my career with answers to direct marketing problems, which is what her research is about today.
  • Carole is a direct marketer at heart, owning her own catalog for many years, and now co-owning an internet service company. She is always thinking about driving response.

That bears repeating. For the almost 30 years I’ve known Carole, she is one of the most passionate people I know with regards to a love for direct marketing and getting someone to respond to an offer. With Carole, it’s not about a catalog or an email – it’s about getting a customer to respond.

Carole sees what’s coming and from her perspective, it’s a Mobile Tsunami. Unless you are one of those rare catalogs whose consumers are over 75, your customers are going to continue migrating to their phone to shop from you. If your target audience is 35, you already know this.

This spring, Carole’s company tracked 500 major catalog and ecommerce companies on one thing – did they have cross-device shopping carts, meaning if I put something into my cart while on my laptop, will it show up in the cart when I access the cart on my phone?

Below are the results of that research:

  • Of the companies tracked, 44% did not send a single email within their 3-week test period;
  • 60% had no abandoned cart recovery program – many of them well-established brands;
  • Of the companies with abandoned cart recovery programs, 39% sent a single autoresponder and 22% sent just 2 reminders, and 54% do not rebuild their carts across all devices.

Carole then took this a step further, and analyzed the cross-device shopping cart abilities of sixty of the companies that attended the Datamann catalog seminar in March. This was her process: Email subscriptions were completed via desktop when possible; a single item was placed in a shopping cart and abandoned via desktop; abandoned cart emails received were opened via phone; Return to Cart buttons were clicked via a phone to verify the presence of a cross-device feature.

Of the 60 companies Carole reviewed, only 29 (48%) had abandoned cart recovery programs. Of those 29, only 11 companies (18% of the total) had some form of a cross-device cart saver program.

One of the reasons I don’t write about these types of programs is that I feel that 90% are common-sense things that you should be aware of and should already be doing. Amy Africa was speaking about the need for abandoned cart email programs more than 10 years ago. Of course, Amy’s ideal was to start emailing consumers within 3 seconds of their leaving your site, but still, the concept has been around for a while, and has been proven to work. Plus, it’s not like the competition is getting any easier and that your response rates could not use a boost. So, it always comes as a bit of shock to see that companies are not doing some of the basics.

(Part of Carole’s research also tracked basic check-out procedures, and I was further shocked at the number of companies that still don’t have a Guest checkout. Why don’t you just tell customers right up front to go to Amazon?)

On the other hand, what is considered a “basic marketing technique” to one mailer is an extra hurdle to other mailers. There are literally hundreds of additional programs, services, products and methods that you are constantly being sold, and of which you are told that failure to implement each one will spell instant doom for your company.  Plus, there are ten different versions of each of these services from different vendors. You don’t have the time, staff or resources to do all of these things that you are told you should. You have scarce resources which you are struggling to manage.

But, as you get ready to go into this fall/holiday season, having a shopping cart that can be viewed across multiple devices seems to me to be one of those standard customer expectations similar to an 800# twenty years ago. You can’t compete with Amazon on many levels. But one thing which Amazon has perfected is convenience and speed. They don’t have a beautiful design, nor many digital bells and whistles. It is all about being efficient in getting your order. Keep that principle in mind as you think about your website this year. Get with it. (And if you want help, contact Carole by going to the Trigger Email Marketing website).

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by Bill LaPierre

VP – Business Intelligence and Analytics

Datamann – 800-451-4263 x235

blapierre@datamann.com

 

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Mid-Summer 2017 Catalog Observations

It’s the end of July, and you’ve almost finished paginating your Holiday catalog. It’s not going to mail for another two, maybe three months, and there are not many changes you can make to it now.

That’s ok, because it isn’t your catalog which you should be changing. It’s your website that you need to work on.

Beyond The Upsell:

When I worked at Brookstone in the 1990s, we spent a lot of time coming up with just the right products for our “telephone upsell” list. You have to remember, this was before the internet, when 50% of our orders came in over the phone. At the end of the order, the CSR would ask the customer if they wanted to hear our list of daily specials, which always included a quart of maple syrup. We argued endlessly over what was the best way to spiff the CSRs for the upsell effort. We argued whether the “specials” should be good products, or overstocks we were trying to get rid of.

Most of you have adopted a variation of upsells on your website with features such as “Customers who bought this product, also liked these products….”

There is nothing special in the list below from FineArtAmerica.com. They take the basic product I was searching for (a poster of Napoleon Crossing the Alps), and show it to me in a variety of options such as a canvas painting, acrylic print, etc. In 2017, you expect different options like this for a poster/print/photo.

But further down, you can see they offer this image of Napoleon as a shower curtain, pillow, phone case, coffee mug.

Lots of you with gift catalogs spend an inordinate amount of time finding/developing new products with witty sayings, or cute images, like a smiling cat, or a mug that says “You Are An Amazing Woman”. But you squander the opportunity to really drive sales for that product because you think only in terms of ONE option for that product.

I hear many of you that sell products which are “nice to have” complain that you depend on consumers looking through your catalog to “discover” all the great new products you have. The future of catalog/ecommerce is going to belong to the companies who can capitalize on taking a great product, and turning it into 100 different options. Consumers will shop the sites where they know they have the most options. That’s why I love Cafe Press – contrary to what catalogers tell me – that “no one browses a gift website!”, I do browse their site (where else can you get a “Nixon in 2020” t-shirt?).

If you are a gift cataloger, stop thinking so one-dimensionally about your products, and think about how you can turn that great new t-shirt with the Walt Whitman quote into a phone case too.

Not In 100 Years:

Is this good catalog upselling, or foolishness? I spotted the item below in the Garrett Wade catalog, and then checked it out on the website. It’s a standard kerosene lantern. I have similar lanterns that have been in my family for more than 100 years, and which I have used repeatedly every summer for the past 50+ years. In all that time, I have never had to replace a wick.  But, Garrett Wade offers 10 replacement wicks for $5.95. Unless you were living in a bunker, and needed to use this lantern pretty much 24 hours a day, I can’t see why you would ever need so many replacement wicks.

Was this just great upselling on the part of the merchant? ($5.95 for 10 wicks is actually a good deal). Was the merchant hoping that the average person buying a kerosene lamp would not know that they didn’t need that many wicks? Or did the buyer himself not know that?

I’m not going to give Garrett Wade too much grief on this, as they do something that most of you don’t do, which is an absolute missed opportunity for you. Right below the offer for the lamps above, they have a link to a video on how to use the lamp. (Ok, maybe if you don’t know how to use a kerosene lamp, you might think you do need 10 replacement wicks).

The video is 1 minute long, I can tell it was not “professionally” produced, but it shows the product in use, and is actually pretty good! It sits right on the Garrett Wade website, so doesn’t send me off to YouTube to watch. Why aren’t the rest of you producing similar videos to showcase your products? Think about how much time people watch videos on their phones – video enhances the sale. You are too concerned about “getting it right”, or that fact that it will look “homemade”. So what? It helps sell.

My only concern with this particular video is that it fails to do any selling – while the guy is filling the tank, he could be telling the viewer how well built it is, that it won’t rust, it will last 100 years, etc.  Consumers still need to be sold. Don’t squander the opportunity. Always Be Selling!

As My Mother Would Have Said – “What Gall!”

I love my local daily newspaper (The Keene NH Sentinel). But over the 30 years I have been a subscriber, the paper has announced a number of “editorial” changes, which you could tell were only meant to keep the presses rolling. A few years ago, they announced they would no longer devote as much space to national and international news. Then sports reporting was cut back, and of course like all newspapers, there are no longer any classified ads in the back.

The kicker came this week via a letter they sent to all subscribers announcing a price increase coming this fall. The best part was this statement: “Due to the size of our premium Thanksgiving edition, there will be a $1 surcharge for this Premium Edition”.

This “Premium” Thanksgiving issue, which actually comes out the day before because the paper does not print on Thanksgiving, is all ads and FSIs. Sure, there are a few extra articles on alternate ways to cook a turkey, or the joys of a vegan Thanksgiving, but beyond that, it is all ads. So, for the pleasure of getting a ton of print ads for which the newspaper is already being paid, my newspaper is now going to charge me $1 extra. What gall!

But, hold on! Can that concept be applied to your catalog? Most catalogs have always had a vendor co-op program where you charge vendors a token amount for appearing in the catalog. What if you took that concept further and charged the vendor the full cost of appearing in the catalog? What if you paid for the entire catalog this way? I know many of you are thinking “Bill has no idea how hard this would be”, or “that won’t work for apparel catalogs”.

Don’t think in terms of 64 pages. Think in terms of 8 pages. What if you got an eight-page catalog completely paid for by a vendor(s)? You could prospect pretty deep if the marketing cost was $0. And, think about this – just as you are getting hammered by Amazon, many of your vendors are feeling the pain of all the retail store closings. They are looking for new markets, and may very well be receptive to helping you, if you grant them exclusivity, or if you agree to promote a new line which they are testing.

Oh, I know – you can’t do this because it would interrupt the flow of catalogs you already have, and potentially cannibalize sales from your Holiday 2 drop. Stop thinking that way. Think in terms of using a vendor-paid-for mail piece as a way to drive consumers to your website. The more baited hooks you have in the water, the more you will catch.

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by Bill LaPierre

VP – Business Intelligence and Analytics

Datamann – 800-451-4263 x235

blapierre@datamann.com

 

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