Should You Create a Spin-Off Catalog?

In an effort to grow their businesses, many catalogers look to create a spinoff as a way to get more pages in the mail, contact customers more frequently or in a different manner, or simply to get new customers.

The big catalogers such as L.L Bean and Lands’ End have handfuls of titles they’re mailing, so it often looks like it must be the right thing to do. And in fact, spinoffs can be very effective at increasing your revenue. However, they also can drain resources and create more costs that, in the end, reduce your pre-tax profit percentage instead of growing it.