URL: http://www.entrepreneur.com/article/26544
Inventors who think they have the next great product have been
asking the same question for years: How can I move my products from
local stores to national retailers? Because that jump is almost
impossible to make in a single bound, many inventors opt for
mail-order catalogs as an intermediate step.
Why catalogs? For a variety of reasons, actually: Catalogs will
order based on a pre-production model and place orders of up to
$50,000; they'll provide valuable proof for how well your
product sells and let you make all your sales calls right over your
telephone; additionally, catalogs are generallyprompt with their
payments.
Chris McKay, 52, co-invented the DoodleTop, which was a big hit in
the toy market in the mid-1990s. The product, which consists of a
marker pen point that draws spirals while it spins, is currently
sold in toy stores nationwide. But in 1997, when McKay came up with
his next invention, the Magnawatch (a watch with an extra lens that
can be used to magnify small print), he decided to launch the
gadget through catalogs instead of large chains. With Magnawatch
featured in about 5 million catalogs this past Christmas, McKay
predicts that this will be yet another banner year for his Direct
Hit Products, located in Carmel, California. He expects to see
sales of up to $5 million this year.
Initially, McKay thought to only market the watch to seniors, but
it turns out the product appeals to travelers who use the
watch's magnifying lens for reading maps, and business people
and lawyers who need to read fine print in contracts and Net
addresses on business cards. McKay has since found the most success
in catalogs such as National Geographic, Signal and
Norm Thompson, which sell unique products for travelers.
Products in those catalogs tend to sell for less than the
Magnawatch's $49 street price, but McKay is currently
developing a premium version that will be a better fit in
higher-priced catalogs.
Don Debelak is a new-business marketing consultant and the author of Bringing Your Product to Market (John Wiley & Sons). Send him your invention questions at dondebelak@uswest.net.
Secrets To Success
McKay believes catalogs make for a fantastic marketing vehicle.
First, the catalogs allow him to build a brand image.
"Customers could potentially see the Magnawatch a dozen
times," McKay says. "Catalogs build
awareness."
Another benefit: Catalog buyers decide whether to buy from a
picture and possibly from a prototype. This means that the product
may only have to be produced once the orders start coming in.
"I like to give buyers several options of the products they
can buy," McKay explains. "Once they decide, I can then
produce the model they've selected. There's plenty of time
to produce the products, as catalogs typically give two to three
months of lead time."
Reason No. 3: McKay likes catalogs because he doesn't have to
compete with giant watchmakers like Casio. "The big
[manufacturers] don't want retailers to handle a product from a
small company," McKay says. "Catalogs, on the other hand,
[prefer to sell] products [not carried by] the big
retailers."
Last but not least, perhaps the most important benefit to selling
in catalogs is that they can show a photo of the product actually
being used. "I'm not sure people would really [understand]
all the benefits of the Magnawatch in a store, where it's not
displayed," McKay says. "In a catalog, the product can be
shown in use, and the reader immediately picks up the benefits of
the product, plus, with a catalog, you're not fighting for
shelf space."
Making It Happen
Think you're ready to sell to a catalog? Choosing the right
catalog is the first step to success. But before approaching a
catalog, you'll need to get a copy of it and check out the kind
of merchandise it carries. You'll also want to make sure it
sells products like yours, and that your price point is comparable
to other products in the catalog. You should even go so far as
selecting the best pages where your product could go. All that
information will eventually come in handy, because your next step
will be to write the catalog company directly, telling
whoever's in charge that your product would be a perfect fit.
Simply call the company and ask which buyer handles your type of
product, and then send your package to that person.
McKay even goes a step further when trying to place his products:
Instead of sending the standard flier to each buyer, he makes up a
mock catalog page featuring his product. "I want the buyer to
see exactly what my product would look like in that catalog,"
McKay explains.
He also likes to present three or four different designs to each
buyer: "Presenting options improves the chances the buyer will
like one of the options," McKay says. "It also tells the
buyer that we're easy to work with, and that we'll do
whatever it takes to make the catalog buyer happy."
When it comes to selling to catalogs, you've got to be
persistent. "You need to keep calling the buyers, even if they
haven't taken your product before," says McKay, who also
says that persistence helps show the buyer that you'll be
dependable. "The buyers are constantly changing, and the new
buyer might like your product, while the old buyer didn't. The
catalog might also have ordered another product where the supplier
can't make delivery." Don't give up on the catalogs
you're interested in--you might get your break.
Catalogs remain a great outlet for inventors. Despite all the hype
surrounding e-commerce, catalogs still consistently produce greater
sales. Catalogs are also a great option for inventors because costs
are low. You can do everything by mail, phone and e-mail.
Inventors hoping to sell their products should include marketing to
catalogs as a key component of their strategies. The orders might
not be as big as those from huge discount chains, but they're
often big enough to establish your business with minimal risk.
That's a winning combination you'd be hard-pressed to find
in any other distribution network.
Finders Keepers
Over the past five years, there's been an explosion in the
number of catalogs available to inventors-meaning you should be
able to find at least 10 catalogs in which to sell virtually any
product. But how to choose? The following resources should point
you in the right direction:
- The Catalogs of Catalogs VI: The Complete Mail Order
Directory by Edward L. Palder (Woodbine House): This book lists
more than 15,000 catalogs in 920 different categories, as well as
5,000 catalog Web addresses. Many libraries carry this book, but
make sure they have the current edition. To order a copy, write to
6510 Bells Mill Road, Bethesda, MD 20817 or call (800) 843-7323.
Cost: $25.95.
- The Directory of Mail Order Catalogs by Richard Gottlieb
(Grey House Publishing): Call (800) 562-2139 to order or check your
local library. Cost: $275.
- The Directory of Overseas Catalogs by Leslie MacKenzie
and Amy Lignor (Grey House Publishing): Call (800) 562-2139 to
order or check your local library. Cost: $190.
Next Step
The U.S. Patent and Trademark Office (PTO) established the Office
of Independent Inventor Programs in 1999. The programs are designed
to give inventors better access to the PTO through a network of
customer service departments within the major patent and trademark
examination divisions. The programs have already set up an
easy-to-use Web site (www.uspto.gov) that answers common
questions new inventors have about patents.