Mail Call Mail order catalogs can be a startup inventor's surefire route to success.
By Don Debelak
Opinions expressed by Entrepreneur contributors are their own.
Mail order catalogs have long been one of the top ways forinventors to sell their products. Catalogs can be used toaccomplish several goals:
- They let you sell to a small market that can't be reachedin any other way.
- They help you create initial sales momentum. Often, retailersare reluctant to handle a product until it has some degree of salessuccess.
- They can be your primary sales channel.
Virtually any type of product can be sold through catalogs.Since most catalogs are aimed at specific niches, catalogs workbest for inventors with specialty products. Products suited forcatalogs usually have four characteristics:
1. They meet a need buyers already know they have. Peopleskim catalogs and only notice products that catch their interest.That happens when the product meets a specific customer need.
2. They have a new or unique positioning statement. Mostpeople think of products in categories. A consumer might see a newsleeping pillow and think it's just like the neck-bracingpillows sold in the past. Your product has to stand out in themarket.
3. They are easily understood. You're lucky ifreaders even give your product a glance. Your invention needs to beunderstood in one to two seconds, or the prospect will move on.
4. They are priced appropriately for the catalog.Products priced from $12.95 to $29.95 do best ingeneral-merchandise catalogs. Specialty and premium catalogerssfavor products priced from $40 to $500. Catalogers look carefullyat how many dollars a product generates relative to the space itoccupies on the page.
Find Your Target
Catalogs cater to specific audiences with a narrow product line.Levenger, for example, is a catalog of upscale products for seriousreaders. Find catalogs that sell to your target audience, sellproducts priced similarly to yours (economy, midrange, or premium),and sell products that are complementary to, but not the same as,yours.
Get a copy of each catalog, and look at the different productsto find where yours fits. Double-check that each catalog'starget market and pricing fit your product. Then make a list of thetop 10 catalogers to which you will send presentation packages.
What to Send
You typically won't need to send a sample product.Catalogers often prefer to see a brochure or sales flier and priceschedule first, then request a sample if they are interested in theproduct.
When you mail your package to the catalog company, include amock-up of a typical page from the catalog that features yourproduct alongside other complementary products already in thecatalog. This shows the catalog buyer how your pricing and productfeatures are a perfect fit.
Create a clear visual that lets people immediately connect toyour product. This image can be of the product itself, or it can beof the situation the product solves. For example, people easilyunderstand from a product picture the dispensing racks that holdmultiple drink cans in the refrigerator. But they may need a visualof a dandelion-removing tool in action to quickly understand how itworks.
Match the style of copy on your sales materials to the style ofeach catalog. Many marketers who sell to various catalogscustom-write their materials each time. Having the right stylehelps persuade buyers that your product is perfect for theircatalogs.
If you have any past publicity, include it in your presentation.If you don't have any, manufacture some. Host an event--itdoesn't have to be big-that allows people to use your product,and then ask them to offer testimonials. For example, you couldorganize a 5-kilometer bike ride for 10 people to showcase a new,more comfortable bicycle seat.
How to Send It
When you send your package is just as important as what yousend. Catalogers typically decide to buy products only once ortwice a year, when they are laying out their new catalogs. Often,this date could be four to five months before the catalog isactually printed. Find out when a cataloger finalizes its productdecisions, then mail to the catalog twice: two months before thefinal date, and again two weeks before the date. Mailing two monthsbefore will help get your product considered in the regulardecision process. Mailing two weeks before the deadline puts you infront of catalog buyers right when they are trying to filllast-minute holes in the catalog.
Before sending your package, find out the name of the buyer foryour type of product. If you call and ask, most catalogs will tellyou. If you don't know who the buyer is, you won't know ifyour information reaches the right person, and you won't knowwho to call when following up.
Catalogers don't want products everyone else has. You canoften get a foothold in the market if you tell buyers your productwill only be in one or two catalogs the following year. This givesthem a little more incentive to buy, and it allows you to ask thebuyer for a response by a certain date so that you can contactother buyers if the first catalog doesn't want yourproduct.
Is It Worth Your While?
One of the biggest advantages of catalog sales is that you havefew expenses other than manufacturing costs. There are minimalsales and marketing expenses, which in most other marketingchannels consume 20 to 40 percent of your sales dollars. You willprobably make money as long as you can sell your product for 50percent more than your manufacturing cost.
The only major expense is that catalogers often ask you to paypart of the printing cost. This should be no more than 15 percentof your projected sales volume. If the printing costs are too high,you can frequently negotiate a better deal. Tell the catalogeryou'll pay with free goods; for example, you'll include 15percent extra merchandise with each shipment to pay forprinting.
Many catalogs have gone out of business recently, and many moreare operating on a shoestring. Ask for credit references, anddon't pay for printing before the catalog is printed-pay onlyin free goods or discounts off your invoice.
Sustaining Success
As a rule, catalogers change a substantial number of productofferings every printing. So unless your product is a top seller,you can expect to be dropped from a catalog every now and then. Youcan minimize the roller-coaster effect of catalog sales by creatingstrong relationships with buyers. Ask buyers what their goals arefor the next issue and what you could do with your product to helpthem meet their objectives. You should also:
- Create variety. Catalogers don't like to have thevery same products as other catalogs, so offer your product withseveral variations for catalogers to choose from. You can offerdifferent colors or a few new features, or pair the product withdifferent complementary items. A painting tool, for example, mightcome with a paint-can opener one season and a masking aid thenext.
- Add catalog customers. You may have offered an exclusivecontract to a cataloger for the first year of catalog sales, butyou can only grow your business by adding catalogs on a regularbasis. Find new target catalogs, and keep going after them.
- Support the product. Your value to catalogs declinesrapidly if you have quality or return problems. Most companies tryto overcome this by directing product returns to themselves. Giveconsumers a toll-free number to call for questions and problems,and provide instructions on returning a product to you. You want toclear up every problem on your own to avoid conflicts with thecatalog.
The drawback to catalog sales is that your product is exposed toa wide variety of people. Potential competitors can see yourproduct, realize it has potential and decide to compete with you.You should at least have "patent pending" status beforeapproaching catalogers, or you risk someone taking your idea.
Key Resources
- The Catalog of Catalogs VI: The Complete Mail OrderDirectory by Edward L. Palder (Woodbine House Publishing,$25.95): Lists more than 14,000 mail order catalogs in nearly 850different categories. Available at www.communicationcreativity.com or (800)331-8355.
- The Directory of Mail Order Catalogs by Richard Gottleib(Grey House Publishing, $275). Available at libraries or by calling(800) 562-2139.
- The Directory of Overseas Catalogs by Leslie MacKenzieand Amy Lignor (Grey House Publishing, $165). Available at www.greyhouse.com.
- National MailOrder Association (612-788-4193): NMOA occasionally featuresnew products in its Mail Order Digest, which is sent tomail-order catalogs.
- Response magazine (714-513-8400): In additionto mail order catalogs, this magazine covers infomercials,direct-response short-form ads and TV shopping networks. It alsosponsors a yearly trade show where inventors can meet withdirect-response marketers who license inventors' products.
Adapted from Entrepreneur magazine's Start-UpGuide #1813, Bringing Your Product to Market, by DonDebelak