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
![]() |
|
![]() |
|
![]() |
|
![]() |
Where is our success? Although there have been improvements, over... Read More
Workplace ConflictConflict is an inevitable part of business life and... Read More
Business can be like war sometimes.You may have to fight... Read More
How well do you know your community? As business owners... Read More
The way we do business has changed dramatically over the... Read More
Sales managers frequently approach me for advice on how to... Read More
This week's article is my response to a question by... Read More
The best way to get a new customer is to... Read More
Is lack of sales results, more sales training costs, months... Read More
Help buyers discover the answers they need to understand and... Read More
Business executives and sales managers frequently bemoan "80/20" performance on... Read More
About 2 years ago, I participated in a training program... Read More
Do you know anyone who regularly wins bids? Or can... Read More
Design and Implementation of a new Sales & Marketing campaign... Read More
I don't know about your business but in my experience... Read More
Compounding the problem are two myths regarding measures of competency... Read More
Exactly what is CRMThe idea itself is nothing new; its... Read More
Recently, I was asked to spend some time on the... Read More
Here's the scene. You're at the trade show, having a... Read More
That we live in a time of relentless and pervasive... Read More
Leadership, like class, is hard to define, but easy to... Read More
When attending a Chamber of Commerce breakfast networking get-together, I'm... Read More
There are several types and sub types of people in... Read More
In the last issue I shared with you a technique... Read More
So everyone thought you were crazy when you announced 6... Read More
Twiddling your thumbs and waiting for some business to come... Read More
In a classic business-to-business print ad from the late 50's... Read More
Business development is important for every business and refers to... Read More
While heading home at day's end, you begin reflecting on... Read More
"We're in the relationship business?...airplanes are what we use to... Read More
Help your organization grow by assessing the right indicators in... Read More
"(Howard) Hughes never learned how to convert his knowledge to... Read More
How you prioritize your sales territory management activities depends upon... Read More
Remember in the last message we talked about your directional... Read More
Increasing Sales by using Coupons. Will it help your business?... Read More
Many people believe that the main reason for representatives leaving... Read More
That we live in a time of relentless and pervasive... Read More
I was in the depths of a major depression. As... Read More
As you are reading this sales article, read very carefully.... Read More
I don't know about your business but in my experience... Read More
Do you know anyone who regularly wins bids? Or can... Read More
Good sales people can close, but few "step up" for... Read More
For many years as a sales manager, I would only... Read More
In today's 24/7 driven business word, accountability is becoming a... Read More
Where is our success? Although there have been improvements, over... Read More
Imagine increasing your business earnings by 30, 40, or 50%.... Read More
Do you want to make more money?Yes, I guess that... Read More
The temptation to use straight (100%) commission plans never goes... Read More
An effective way to increase your profits and sales is... Read More
Here's the scene. You're at the trade show, having a... Read More
If you have a small business and you are looking... Read More
Sales managers frequently approach me for advice on how to... Read More
As a group of sales trainees took a break from... Read More
You may have heard about the "summer slowdown". You may... Read More
The way we do business has changed dramatically over the... Read More
Generous Donor RefusedPicture this. You are a fund development director... Read More
No matter what you do, it seems, your employees do... Read More
Do you need help overcoming sales objections? Do you sell... Read More
The old adage in selling has always been, "Find out... Read More
In today's competitive environment, every organization is trying to improve... Read More
If you really want to secure government contacts at the... Read More
A recent study of 2,663 sales organizations by Think Training,... Read More
The objective of an incentive is to incite action within... Read More
Many recruiting ads and job descriptions include "knockout factors" that... Read More
I just got off the phone with Susan. She is... Read More
To put it mildly most companies sales forecasting just isn't... Read More
Sales Management |