Merchandising

One-Stop E-commerce: GiftCatalog.com
December 1, 2001

Type the word “Gift” into any Internet search engine, and you’ll be faced with more sites than you know what to do with. From Gift.com to SendAGift.com, online gift retailing has become a hot-button business. With such a crowded field, why would the executives of retail giant Target Corp. decide that three of its strongest print catalog brands—Wireless, Signals and Seasons—would do better under one URL, GiftCatalog.com? The answer lies in the shopping experience. Market researchers told Target’s online division, target.direct, that potential for cross-selling among the three catalogs was high, but that navigating three different sites was not as easy it should be.

How to Determine Your Catalog’s Break-even Point
November 1, 2001

To prospect for new buyers cost effectively, a catalog company needs to know its break-even point (BEP). I like to express breakeven on a per-catalog-mailed basis—that is, how much gross (or net) revenue must you generate per catalog mailed to hit your desired break-even target? This becomes your stake in the ground. All outside lists and housefile segments should be evaluated and measured against this break-even criteria. Two BEPs Two BEPs can be used: *an incremental (sometimes called variable) breakeven, and *a fully absorbed BEP. Mailings to prospects should be evaluated using an incremental BEP analysis. The fully absorbed BEP can

Gifts from the Florida Sunshine
November 1, 2001

One night in 1950, a truckload of grapefruit was late in arriving at Ed Cushman’s tiny fruit packing business in West Palm Beach, FL. Cushman was there supervising as the grower’s truck was being unloaded. As the last 20 bushels came off the truck, Cushman asked the workers, “What the devil is this? These aren’t grapefruit!” Said the driver, “I don’t know. I just deliver what they give me.” Turns out this particular grower had a few trees of Mineola tangelos, and they almost looked like orange bells. “My dad came up with the name ‘HoneyBell’,” says Allen Cushman, now president of

Polish Your Merchandising Skills
November 1, 2001

When we consult with catalogers about merchandise, we’re asked questions about products that didn’t sell as well as expected. Some clients often wonder if they should try selling the product again, and if so, how many times and in how many different ways before finally giving up on it. These are legitimate questions, and some time should be spent on determining the answers. However, catalogers often waste too much time trying to revive losing items when they should instead spend time on those things that offer a bigger bang for their efforts. Questions & Answers The question “Should you try selling the

Spiegel Takes Fashion Forward
October 1, 2001

Melissa Payner is a risk-taker. The 43-year-old retail industry veteran has been president and CEO of Spiegel Catalog for only 10 months and already has turned the place on its head with new merchandising, catalog creative, advertising and promotions. It doesn’t matter that the economy remains in a slump and catalog industry sales are down: Payner is excited to be breathing new life into Spiegel Catalog by refocusing on its customers and strengthening its brand image. There’s no arguing that Spiegel needed a change when Payner took the reins. Looking back five or six years, one might describe the catalog’s branding as

How to Deal With Challenging Vendors
September 1, 2001

If you’ve ever struggled with how to effectively manage relationships with your vendors, following are some tips learned from the trenches of cataloging. Complaints About the Call Center The second hand on my watch swept past 12 ... again. I’d been on hold for 10 long minutes. Another music-on-hold tune began, and I realized I’d heard it already. I’d been on hold so long, the tape loop was repeating! As I listened, I imagined all the customers who had viewed my beautiful catalog, read my great copy, found a product they really loved, called—and now were hanging up in disgust at the

Case Study: Chinaberry Catalog
September 1, 2001

Imagine for a moment that your catalog company’s main competitors are book-selling giants Amazon and Barnes & Noble. The grueling price wars—behemoths battling for market share tend to inflict that on their industries—are driving the smaller players in your space either to bankruptcy court or to the arms of consolidators. But through it all, your niche catalog company continues to enjoy annual sales growth of about 13 percent—for 10 years running. And, in all but one of those years, your company recorded healthy profit margins. Chinaberry, a cataloger specializing in books and other products for children, women and families, combines a carefully selected merchandise

Merchandise Spotlight: Power Grills
September 1, 2001

Product benefits and colorful food imagery are key ingredients to selling high-end “outdoor kitchens” Grills have come a long way since the tiny, round burners of old. In fact, today’s large, high-tech grills are known as “outdoor kitchens,” and buyers are spending huge sums to provide their guests with the best cookout experience possible. According to Jeff Ryan, a senior copywriter at Via and a 19-year veteran of L.L. Bean, today’s grill merchants need to point out benefits like stainless-steel construction, burner capacity and easy cleaning. To appeal to the modern grill market, Ryan says copywriters also should mention grill size; how

From Salvage to Space
August 1, 2001

When you come to a fork in the road, take it. —Yogi Berra This is the extraordinary story of a family-owned corporation that bailed out of its half-century-old signature business and took off in a whole new and highly profitable direction. In 1942, an avid young amateur photographer named Norman W. Edmund tried to locate good camera lenses. But the war had thrown a wrench into the entire stream of consumer and industrial products. After an exhaustive search, he found a source for his lenses. It occurred to him that other camera buffs may be in the same boat, so the

The Itch to Find a Niche
July 1, 2001

I am quite amazed by the number of unique, niche catalogs that have found their way to my mailbox or in-box lately—everything from catalogs for cigar smokers (i.e., Corona Cigar Co.) to American Historic Society’s catalog targeting coin collectors to a catalog selling Vidalia onions (yes, Bland Farms sells onions). Then at last month’s annual Catalog Conference in Boston, I was introduced to several other niche players I hadn’t been aware of before. Wolferman’s catalog, for instance, sells a signature product—English muffins, which look so mouthwateringly delicious that I have to order some of these yummy treats. At a luncheon one day, I sat