Shipping

A Burdensome Plan
February 1, 2006

The Streamlined Sales and Use Tax Agreement (SSTA), in the planning stages for many years, finally went into effect on Oct. 1, 2005. So far, it’s a voluntary program in which remote sellers collect state and local sales taxes and remit them to the jurisdictions in which their buyers reside. As you know, merchants currently are required to collect state and local taxes only if they have nexus (a physical presence such as a store or headquarters) in the state. Consumers are expected to pay sales taxes on their online and catalog purchases. Of course, most don’t bother or don’t know it’s required. As

Trim Costs After the Postal Rate Increase
February 1, 2006

From improved data hygiene practices to a better print contract, a little savings here and there really can add up. Last month’s postal rate increase of 5.4 percent should have caught no one by surprise. If you’re looking for ways to save on other parts of your operation in order to pay for your higher postal bill, you’ll find many options. In the first part of this article, you’ll learn about list hygiene tools that aren’t just important to offsetting the postal rate increase, but are good strategies to keep your housefile healthy and responsive. In the second part, we’ll offer tips and caveats

The Drill Down
February 1, 2006

How your operations and marketing efforts can benefit from statistical analysis and modeling. Forgive me if I generalize for a minute. There are two approaches to marketing analysis: the arithmetic and the statistical. The Arithmetic Approach Sometimes called “descriptive analytics,” this is relatively straightforward and inexpensive, depending on a spreadsheet and the sweat of your brow. Extracting a season’s sales from your transaction system to your spreadsheet, you can determine the following: - percent response, by dividing your number of orders by your mail quantity per segment; - average order value, by dividing your gross sales by your number of orders per segment; -

Build a Collaborative Relationship With Your Printer
February 1, 2006

Your relationship with your print suppliers should be strong and cohesive. After all, your printer may be your largest vendor in terms of dollars spent annually. Your printer is important to your business, and you should view it as your company’s business partner. When deciding on a printer, price certainly is important. No direct marketer should pay a large premium for the privilege of dealing with a particular printing company. But there are other factors, such as service, lead times and technology, that should be taken into consideration. In this article, I’ll offer tips for maximizing your relationship with your printer.

Strategy: When Prospects Aren’t Buying
February 1, 2006

What to do about declining results to prospect lists. Response rates to outside prospect lists have been on the decline, and last year was no exception. In some cases, results to tried-and-true continuation lists are off by as much as 50 percent. This isn’t a trend that’s likely to reverse itself anytime soon. This month, I’ll look at some reasons why response rates have declined and what you can do to compensate. Why Prospect Lists Trend Down Response rates to prospect lists have declined for several reasons: unseasonably warm weather during this past fall and holiday buying season, large amounts of consumer debt

Cool Ideas
January 1, 2006

In a world of cynics it’s easy to focus purely on what needs fixing or what’s just plain silly. Yet no doubt you agree that it can be refreshing and heartening to concentrate on the positive things one sees in daily life. Here are a few I encountered in the past few weeks: Gift cards for various merchants sold in supermarkets. A display at my local Super Fresh included gift cards for companies such as Bed Bath & Beyond and The Home Depot. Talk about convenient holiday gift shopping for consumers and an added distribution channel for merchants. To whomever thought of that idea,

A Chat With Paal Gisholt, President/CEO, SmartPak Equine
January 1, 2006

© Profile of Success, Catalog Success magazine, January 2006 Catalog Success: When was the catalog established? Paal Gisholt: The catalog was established in April of 2002. Prior to that, we were a dot-com company that started in June of 2000. CS: How do you describe your primary merchandise? PG: We have a core product offering, which is custom-packed equine nutritional supplements in daily-dose packs. We’ve used that as a platform from which we sell all different types of products that are useful to people who ride horses. Those are things like horse clothing, barn and stable equipment, rider gear, pharmaceuticals for horses, etc. And

What’s New in Packaging Solutions
January 1, 2006

With Americans spending as much as $26 billion on holiday gifts online in the past two months, an increase of 18 percent from 2004, according to Jupiter Research, chances are good you’ve just shipped a record number of packages. As you begin to assess how well you weathered the holiday rush, consider how your customers received your products. Did all your packages arrive in one piece? How many returns were due to damaged merchandise? Following are new products and services that can help keep your packages safe and your fulfillment center in top form. Foam Packaging Delivered at Room Temperature Instapak

How to Determine if Co-mailing is Right for You
December 1, 2005

Co-mailing (also known as co-mingling) is the process of combining different catalog titles from different catalog companies into one mail stream to generate more carrier route discount mail. On the surface, co-mailing sounds like a great idea. Why would any cataloger be opposed to co-mailing if it resulted in a greater postage discount? However, co-mailing can be challenging. Five Requirements 1. All of the catalogs in the co-mailing must be the exact same trim size. 2. The ink-jet areas must be the same on both the order form/page and on the back cover. 3. All of the participating catalogs must have page counts

Postal Strategies: Reduce Mailing Costs
October 11, 2005

It’s likely we’ll see a 5.4 percent increase in postal expenses in 2006. To us mailers, the meaning is simple: 5.4 percent less contribution to overhead and profits. We’ll need to rethink list and circulation strategies to keep some of our marginal lists within our allowable metrics. Therefore, we’ll either have to: ¥ scrap the mailing lists that aren’t performing within allowable metrics; ¥ review customer lifetime value and allow for a longer payback process (the time it takes to recoup the investment into acquiring a new customer), and a deeper loss per customer acquired; or ¥ reduce catalog expenses to an amount commensurate to the postal