Cut Costs or Invest
Every business manager such as yourself must balance the need to cut costs vs. invest for growth. Which way the scale tips depends on several things, including the general state of the economy, political events, your own bottom line, and your company’s merchandising and operational strategies.
As a business editor, I’ve noticed many articles published in the last few years touting cost-cutting measures. But as the economy rebounds, more and more attention is being paid to business investment for revenue growth. This month we offer articles for both camps.
Our cover story examines the growth plans of gourmet food cataloger Mackenzie Limited. The father-daughter team that runs this Baltimore-based catalog recently struck two interesting deals that will help the company diversify its product line and leverage its expertise in consumer marketing.
In his column this month, Steve Lett notes that it’s tempting for catalogers to cut costs by slashing prospecting. But, he cautions, that’s a strategy that does not lead down the path to sales growth. See his column, “How Much Should You Spend to Acquire New Buyers?” His thesis: You have to smartly and efficiently invest in your housefile if you truly want it to grow.
Also in this issue, you’ll find an interview with Matt Corey, vice president of marketing and e-commerce at multichannel merchant The Bombay Co. The furniture and accessories purveyor has devised a winning formula for opt-in, e-mail marketing. And the company is seeing incremental sales growth from its investment in the channel.
Meanwhile, for the cost-cutters and operational improvement folks out there, we offer two articles this month that we think you’ll find worthy of saving. Theodore Osuniga of First National Merchant Solutions offers an insider’s view of batch vs. real-time credit card processing. Making the right choice, he notes, will help you streamline your operations and reduce costs.