Do I Need a Dead-Tree Catalog, Too, or are Electrons Enough?
January 2, 2010 7:52 AM   Subscribe

In 2010, what role does the printed "mail-order" catalog play in small retail businesses who have an on-line store as well as a brick-and-mortar shop? How much does it contribute to either new sales or existing customer retention?

I'm working on a business plan for a new retail shop that will have 200+ items in its product line. Our plan is to have both a small physical store and an e-commerce store online. In writing up the business plan, the question of a printed catalog has come up and so now I'm trying to understand both the economics of it (production cost, postage, increased sales, etc....) as well as the role that a printed, paper catalog would play in our marketing plan. It appears that MeFites love their dead-tree catalogs. Unfortunately, my googling turns up a lot of direct-mail marketing hype noise and not much in the way of helpful, real-life usage information. If you have a small business that produces a printed catalog in addition to your online marketing efforts, how does it affect your bottom line, directly through sales to new customers or indirectly as part of customer retention, triggering new orders, etc...? How do you produce it? How and to whom do you use/distribute it?
posted by webhund to Work & Money (8 answers total) 1 user marked this as a favorite
 
I cannot answer your question from a business point of view, but I can give you my used to shop from catalogs point of view. There are several specialty business from which I buy on a regular base and from which I used to receive catalogs: I unsubscribed from the catalogs, bookmarked the shops, and buy directly on line when I need something.

This suits me because I am not a browser and do very little impulse buying. I can see why a catalog would attract more impulse buyers.
posted by francesca too at 8:17 AM on January 2, 2010


Best answer: Printed catalogues are used for retention. Prior customers are the best customers; catalogues keep your product in their face. Generally this is only useful when your product is discretionary OR when you are selling a commodity, so it depends on your product and how often and when customers might be expected to make a purchase. Depending on your budget, follow patterns established by successful players in your market sector.

(Important advice: don't listen to recommendations from people who want to sell you services, instead do careful research on what the most successful competitors do and ape it to the best of your abilities, while adding your own unique angle.)

You didn't mention what your product is, so absent more detail there, I doubt we'll be able to be more specific. The patterns by folks like Lee Valley, Lands' End are good: One or two large catalogues during the year (and always one in a shipping carton), and a thin update flyer every two months or so, plus holiday specials. Don't send out single page flyers except for "come in to our sale" purposes; if you want your catalogue or flyer to stick around in the customer's home, it must be large enough for several reading sessions.

Good luck.
posted by seanmpuckett at 8:26 AM on January 2, 2010


I worked at a clothing retailer that had brick and mortar stores, online and print catalog. The catalog was, for the most part, a very slick marketing piece. We didn't expect a large amount of sales through the catalog itself, but it drove business to stores and online. Hard to quantify exactly, but it was all part of a comprehensive marketing strategy to customers so that they were touched through multiple channels. Abercrombie's catalog is a good example of this strategy. Their's creates a very romantic view of the brand and product, which is reinforced through the store experience.

That being said, there are some types of products that do very well through catalogs for promoting purchase, with the sale being done both through online and phone. Examples are upscale homeware and garden catalogs.
posted by qwip at 8:31 AM on January 2, 2010 [2 favorites]


What's your customer demographic? My mum (60) is quite capable of shopping online, but much prefers to browse through paper catalogues and make her choices there; my grandma (88) doesn't have a computer and loves her catalogues. So it depends on who you're selling to, as well as (as seanmpuckett says) what you're selling.
posted by Coobeastie at 8:37 AM on January 2, 2010


I have a business with about the same amount of products. Because of it's unique nature, people usually don't need me immediately. Everything is online, and I look at my online store as also being a catalog. For me, it would not make sense to have a regular catalog, as they might get it and still not need me for another 10 years.

So what I do is send catalogs by request. Sometimes people have a relative who is not comfortable with the computer. Or, often, people in my general industry want a catalog to share with their customers. I use it to offer those people's customers a discount if they make a purchase.

I actually do use postcards as mini catalogs right now, as they are less expensive.

I have a niche business that calls for niche actions, so it may not apply to you. It really depends on what product you are selling.
posted by Vaike at 8:41 AM on January 2, 2010


Response by poster: These are great responses! I don't want to violate any posting rules, but as several have indicated it might help in responding, my product line is non-perishable culinary ingredients, primarily herbs, spices, chiles, peppercorns, salts, sugars. (FWIW, I've studied my competitor's print catalogs and they range the gamut from pure 2-column text with virtually no graphics to high-end glossy (but very cluttered) magazine style).
posted by webhund at 9:19 AM on January 2, 2010


Best answer: My SO works at an apparel company.
He says that although phone calls in to order from the catalog have dropped significantly in the past decade or so, people still look through it.
In the week or 2 after the catalog ships, there is a bump in sales. They do 10 catalogs a year - each season, then a follow up (fall, then holiday, then post-holiday, then spring, then early summer) and for particular lines (all ski stuff).
Also in the catalog they feature 'stories' about the products.
posted by k8t at 10:52 AM on January 2, 2010


I used to work for a tri-channel retailer in the sporting goods industry. Much more revenue came from the book orders than you might expect, but this was also a golf-centric retailer with an older demographic. I think it largely depends on the target audience of your product. Computer parts? I would say little need. Knitting supplies? Moreso.
posted by CharlesV42 at 10:25 PM on January 2, 2010


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