Things to watch out for when selling your product in catalogs.
Giving away the farm.
Many catalogs will ask for a multitude of discounts and concessions before they even place one order. You give them a set price for your product. But they insist on a lower price. They expect you to pay freight. They want an "advertising allowance." They ask for a volume discount, a catalog allowance, and a photography fee. The requests for concessions go on and on. But beware of this game. If a catalog truly likes your product, they will usually pick it up without requiring a ton of concessions.
Being stung by mistakes.
Review a catalog's rules and shipping requirements closely. Mislabeling your master cartons, shipping late, or failure to follow any of their vendor requirements could cost you. Penalties are typically enforced through deductions off invoices. A few deductions here, a few there, and you can kiss your profit goodbye.
Falling behind with orders.
The only thing worst than having a product no one wants to buy, is having one that so many people want you can't keep up with the deluge of orders. If you've never had insomnia, this scenario is guaranteed to cause it. When thinking about your production needs, think as optimistically as possible. Make sure you're capable of handling production if the catalogs are successful with your item. And always have backup suppliers lined up -- just in case.
Products that boomerang.
Returns from catalogs are an inevitable part of the equation when figuring out your profit. If you have a good, well-built product that delivers on its promises, you have little to worry about. However, high returns are often the first warning sign that there are problems with your product. It breaks easily when shipped, customers think it's overpriced, or assembly instructions are confusing. Any number of issues can be red-flagged by high returns.
Placing your eggs in one basket.
Many catalogs ask for an "exclusive." This agreement guarantees that the catalog will be the only one carrying your product for the length of the exclusive. Generally this is not a good deal for your company. Naturally an exclusive with one company locks you out of the rest of the market. If you do grant an exclusive, keep it as short as possible. Six months is plenty of time for an exclusive.
Doing business with deadbeats.
Let's face it, the main reason you do business with a catalog is so they will pay you for your product. How frustrating it is then when they don't live up to their end of the deal. And it happens. Like all businesses that are strapped for cash, when a catalog is experiencing lean times, they will delay payment to their vendors. So keep a close eye on when an invoice is due, and don't let them slide too far past. Any invoice more than a month past due could indicate trouble. Your best recourse is to hold up shipments to that catalog until you get paid. You can even ask for payment up front on new orders.
About The Author
Jim Tilberry is President of Tilberry Direct Marketing. His business specializes in helping inventors and small companies sell their consumer products through mail order catalogs.
www.catalogrep.com / tilberrydm@aol.com / 800-413-0679
![]() |
|
![]() |
|
![]() |
|
![]() |
In the last issue I shared with you a technique... Read More
While heading home at day's end, you begin reflecting on... Read More
Sales forecasting is the process of organizing and analysing information... Read More
Your ability to write an effective and persuasive business proposal... Read More
Sales managers are an interesting breed, effective sales managers are... Read More
Generous Donor RefusedPicture this. You are a fund development director... Read More
The temptation to use straight (100%) commission plans never goes... Read More
Recently, I was asked to spend some time on the... Read More
TIME, MONEY, HASSLE - You can make a sale on... Read More
"(Howard) Hughes never learned how to convert his knowledge to... Read More
One marketing technique may work wonders for someone, but that... Read More
Everybody thinks that the businesses will slow down a bit... Read More
A recent study of 2,663 sales organizations by Think Training,... Read More
Every dollar you discount is a dollar of pure profit... Read More
In a small midwestern town, the local high school of... Read More
Many recruiting ads and job descriptions include "knockout factors" that... Read More
Small to medium companies that want to increase sales or... Read More
Exactly what is CRMThe idea itself is nothing new; its... Read More
I remember moving my family to Argentina as Vice President... Read More
In today's competitive environment, every organization is trying to improve... Read More
Help your organization grow by assessing the right indicators in... Read More
Help buyers discover the answers they need to understand and... Read More
Selling. Cold calls, introductions, interviews, appointments, proposals, referrals, call cycles,... Read More
Recently I stumbled across some notes that I had kept... Read More
Good sales people can close, but few "step up" for... Read More
I just got off the phone with Susan. She is... Read More
Many people today simply prefer the convenience of paying by... Read More
In a classic business-to-business print ad from the late 50's... Read More
YIPPEE! Kendra won, or should I say, "She was hired,"... Read More
Microsoft has used this online sales secret to become a... Read More
So you have a boss who dumps all over you... Read More
There are several types and sub types of people in... Read More
1. LOOKING for a "quick fix" to close more sales... Read More
This is a quandary not unlike the chicken or the... Read More
An effective way to increase your profits and sales is... Read More
Design and Implementation of a new Sales & Marketing campaign... Read More
Many sales meetings are boring and a waste of salespeople's... Read More
According to former Harvard Business School professor David Maister, typical... Read More
Are your people consistently following your procedures? Each year, organizations... Read More
Are you dog tired because of the way you manage... Read More
If you really want to secure government contacts at the... Read More
One of the most asked questions I get is how... Read More
Recently I stumbled across some notes that I had kept... Read More
The American Business Journals produces a Book of Lists each... Read More
I recently attended the monthly Italian language Meetup here in... Read More
While there's no easy answer to this question, there are... Read More
Few businesses keep tabs on competitors, yet such knowledge can... Read More
The temptation to use straight (100%) commission plans never goes... Read More
As a previous owner of a Franchise I know the... Read More
The Federal Trade Commission has rule that are supposedly in... Read More
Small to medium companies that want to increase sales or... Read More
The old adage in selling has always been, "Find out... Read More
A recent study of 2,663 sales organizations by Think Training,... Read More
Your ability to write an effective and persuasive business proposal... Read More
Bill Borders stepped up onto the podium. He had just... Read More
Be clear about where you are now. Audit your strengths... Read More
TIME, MONEY, HASSLE - You can make a sale on... Read More
That we live in a time of relentless and pervasive... Read More
Q. What's the single, biggest change exhibitors can make to... Read More
Of the many mistakes small business owners make, a big... Read More
There's a new year beginning now - the school year.... Read More
The Cash to Cash Cycle Part Three of SeriesWe're sprinting... Read More
We all agree one of the most important parts of... Read More
Inspiration and Management from Within ? Part 2.The more you... Read More
Corporate videos are an important sales tool that can often... Read More
As you are reading this sales article, read very carefully.... Read More
Sales Management |