Cut Costs or Invest

Our cover story examines the growth plans of gourmet food cataloger Mackenzie Limited. The father-daughter team that runs this Baltimore-based catalog recently struck two interesting deals that will help the company diversify its product line and leverage its expertise in consumer marketing.

In his column this month, Steve Lett notes that it’s tempting for catalogers to cut costs by slashing prospecting. But, he cautions, that’s a strategy that does not lead down the path to sales growth. See his column, “How Much Should You Spend to Acquire New Buyers?” His thesis: You have to smartly and efficiently invest in your housefile if you truly want it to grow.