Retailers are pulling out all the stops to eliminate waste and reduce costs. Major catalog marketers nationwide have hopped on the “tighten your belt” trend, with an increased demand for smaller, letter-rate catalogs. Dropping millions of large catalogs to underperforming mailing lists is passé, while green design and consumer perceptions are hot, and postage is at an all-time high.
Whatever your personalization strategy, the key is to get started. Develop a personalization plan and keep working your way up the personalization ladder. Each step will bring new benefits and help generate the return on investment you need to justify further investments.
Factory orders rose in February, bolstered by strong demand for industrial machinery and commercial aircraft. It was the 10th increase in 11 months as manufacturing continues to provide crucial support for the nation's economic recovery. Manufacturers, which were hit hard by the recession, are benefiting from overseas orders and increased business spending on capital equipment. Quinlan estimates that factory orders fell by about 25 percent during the recession, but have recovered about one-third of that amount since last spring.
All catalogers want to capitalize on the recovering economy, but they're most likely still constrained by pretty tight budgets. To help catalogers learn how to prioritize their needs and tailor their printed catalogs to maximize revenue, All About ROI presented a Feb. 16 webinar called "Ways to Get More Bang for Your Paper Buck: How Combining Your Priorities and Paper Innovations Can Save You Money in 2010."
Economic crisis accelerates changes in the basic underlying business models of multichannel marketers, who have had to adapt in order to survive as consumers shut their wallets. Here are some of the ways business models have been radically and permanently altered.
Problem: The B-to-B catalog/multichannel marketer Patterson Office Supplies was overburdened with too much data resulting from the 9,000-plus SKUs in its quarterly catalog. This data overload resulted in the catalog remaining static for years and, as such, it wasn’t optimized to peak efficiency and profitability.
Solution: Implemented a software product to simplify its data.
Results: Improved data and square-inch (squinch) analysis has led to a tighter merchandising mix and more profitable catalog. Catalog page count has been reduced by 20 percent, resulting in a 20 percent cost savings on paper, 30 percent savings on printing and 25 percent savingson postage.
This week in the final part of our two-part series on co-mailing economics, I’ll inform you of the various price estimates you need to research from printers to accurately compare savings between co-mail pools. I also pose a list of questions that catalogers need to ask printers when negotiating co-mail contracts. (For part 1, click here.) Cost Estimates It can be difficult to compare savings between different printer’s co-mail pools. To do this effectively, you need to get the following estimates from printers: * estimated gross postage without any savings; * estimated net postage after the printer’s mail pool and co-mail savings; and *
Catalog printers are running full-page ads touting their co-mail capabilities. Why has co-mailing become such a hot topic in the dialog between catalogers and their printers? Simply put, co-mailing represents the potential for very significant savings in postage costs. The variation in savings between printers, based on the size of co-mail pools, in-line co-mail and off-line co-mail, means choosing the right co-mail partner can be the most significant factor in selecting your printer! The majority of a catalog’s publishing costs are contained in the three P’s: printing, paper and postage. The cost of creative, list rentals and merge/purge is small compared to these three
With today’s tough economic times calling for catalog/multichannel marketers to tighten budgets on every front, one of the biggest challenges is how to cut catalog production costs without diluting the brand or skimping on key creative elements. But what stone has been left unturned on that front? Here are eight cost-cutting, brand-retaining production ideas to consider. 1. Marry and involve both your production and creative team members at the very beginning of each project. Their insight and experience will identify pitfalls, time-saving technology opportunities, and ways to streamline the production and proofing process. 2. Take full advantage of your vendor relationships to minimize paper,