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Phil Minix
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• Explain your costs to your vendors, especially if they aren’t familiar with the catalog business. It’ll help them understand the risks you’re taking by offering their products. Make sure they understand how many people will see their items; how all your costs are front-loaded; how few people actually will order from the mailing; the high opportunity cost of not being in stock; and your fulfillment costs. This data will help vendors understand how you’re different from a retail operation and why you generally need more than a keystone to be successful with most items.
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Phil Minix
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