Merchandising

As margins continue to be squeezed, reducing expenses has become a major topic of discussion among catalogers. In fact, many have put into place specific edicts to reduce operational expenses. That said, the purpose of this article is to offer ideas that can help you attack one major aspect of your company’s cost structure — vendor inbound freight (VIF). By properly managing your company’s VIF, you could make the difference between a marginally good and a very good year for your catalog. Current State VIF usually is included on the profit-and-loss statement as part of overall inventory costs. This low visibility line item normally

A large portion of your catalog’s success is in the hands of its merchants. They are, after all, the ones responsible for finding, developing, pricing, placing, analyzing and ensuring delivery of all those great products you offer. Of course, other staffers are important, too. Success comes from the contributions made by all team members. But I believe special attention should be paid when hiring or developing merchants since they’ll be integral to your success. This month I’ll examine the key traits to look for in merchants. Analytical Ability The most effective merchant is skewed more heavily toward the analytical side than the intuition

You discover a terrific product that you know your customers will love. The vendor’s pen hovers over the quantity line on the order form. How much should you buy? Three catalog executives shared with Editor Donna Loyle their insights and methodologies for projecting how much merchandise to stock for each catalog campaign. Ron Zientarski, vice president of purchasing and inventory management, Corporate Express, Grand Rapids, MI Product: business-to-business office supplies and furniture Size of warehouse facilities: The company has 257 office products locations, including 40 distribution centers spanning more than 6 million square feet. SKUs: 70,000, but 7,000 to 25,000 are

In 21 years at Newport News, Geralynn Madonna has become the chief ambassador for this fashion-forward catalog brand. Having studied fashion at F.I.T. in New York before making her way into the catalog industry at Lane Bryant, Madonna moved in 1981 to Newport News’ predecessor, Avon Fashions. Starting as an assistant buyer in the swimwear department, she was quickly promoted through the ranks, first to buyer, and then on to director, vice president of merchandising and executive vice president before landing in her current post. Madonna has seen the catalog through a series of changes, including a leveraged buyout in 1987 and the

In 12 years of running his own catalog, Jarek Zaremba says he’s learned the importance of prioritization. “You cannot grow if you’re trying to do it all. We’ve had to take one step at a time and do each one right,” says Zaremba, president of the catalog Polart, Poland by Mail. Born in Poland, Zaremba founded the catalog with his wife in 1990. In the beginning, the catalog was a simple brochure photocopied in the couple’s basement and mailed in a #10 envelope. Today, the four-color catalog averages 32 pages and is mailed to 750,000 customers and prospects each year. How the

Many catalog managers have an idea of what they want their brand to be, only to learn through trial and error that what they want it to be may not be what it is. Likewise, in an effort to deliver something exciting to a catalog client, many creative agencies suggest remaking a brand to become more appealing to a different audience (e.g., younger, hipper, wealthier). Certainly, there may be legitimate reasons to redo your brand, but understand that it’s a difficult and complex process requiring thought and expertise to execute. Making an abrupt change and unveiling a new creative or merchandising concept could

National Geographic’s yellow rectangle is recognized worldwide for its authority and credibility as a source of exploration information. Consequently, the pressure to feature similarly authentic catalog products runs high. But the catalog staff welcomes the challenge. “You have to be willing to follow the process of approval for each item,” says Linda Berkeley, president of National Geographic Enterprises, of which the catalog is a subdivision. “You have to be willing to walk away from items that are inappropriate, even if you think they might make a lot of money.” By featuring only merchandise that can support its tagline, “Products that bring the world

The most successful catalog merchants have learned to focus their merchandise concept and offerings. Even a general merchandise cataloger that sells products in several major categories learns there must be a focus to what it sells (e.g., value, credit, lifestyle). Consumers have a “mental filing cabinet” in which they store retail and catalog brand names. They organize the information by subject (e.g., type of product, type of store), not by company name. So customers must be able to put a label on your catalog to know where to “file” it. If they can’t determine that, or if they don’t have affinity

Even the best merchants sometimes over-buy or miscalculate sales projections. And sometimes your returns ratio creeps a bit higher than normal. What’s a cataloger to do? Dump the stuff. Surplus goods have no value to your catalog until they’re converted into cash and those funds are reinvested. In addition, the overstocked items are taking up precious real estate in your warehouse, and you must pay to insure and maintain them. Finally, surplus assets depreciate in value more quickly than other assets as they become obsolete. Following are some ways to discard inventory and clear your shelves for tomorrow’s new goods. Discount to Move 1.

In a comfortable corner of Omaha, NE, designers, woodworkers and seamstresses create more than 600 new home decor and giftware products each year. Founded by Pamela Watanabe-Gerdes in 1987, Tender Heart Treasures considers its in-house design staff one of the company’s strongest competitive advantages and a major reason for its success. Today, the company produces two catalogs: Tender Heart Treasures, which offers country-style giftware and home accents, and A Special Place, which features more romantic, European-inspired gifts and home decor items. In addition to its catalogs, the company markets its products to wholesale customers through trade shows and two showrooms. Started with just