B-to-B

Ron Mis sees Galeton as the Dell Computer of the work gear industry: manufacturing and marketing its own product line to a loyal fan base. Mis, owner and president, likens Galeton’s business model to that of a true direct marketer, with cost advantages that a manufacturer enjoys when it sells its own goods direct to end-users. By selling direct in this way, Mis explains, it “makes our business truer to the original concept of a direct marketer than many who call themselves that today. Many who say they’re direct marketers actually are distributors of other manufacturers’ products,” he explains. Thus Massachusetts-based Galeton both

If yours is a business-to-business (b-to-b) or a business-to-institution (b-to-i) catalog, no doubt you have questions about effective prospecting techniques. Below are some tips on how to use your housefile as a prospecting file, such as mailing by name of individual vs. by functional title. The Income Statement One of the significant differences between a consumer and a b-to-b catalog company is the income statement. The EBIT (earnings before interest and taxes) of a typical b-to-b company ranges from 10 to 12 percent. Consumer catalogs tend to be less profitable at 3 to 6 percent. Direct selling expenses account for a large part

Every business-to-business (B-to-B) merchant should take the time to optimize its homepage space to ensure its customers have a positive experience, said Amy Africa, president of Eight By Eight, a strategic consulting firm specializing in online and offline integration, in her session “The Best of the Best: B-to-B’s Top 25 Web Sites” at the Sixth Annual MeritDirect Business Mailer’s Co-op and Interactive Marketing Conference held last month in White Plains, N.Y. Africa offered the following tips for b-to-b marketers interested in taking their Web entry pages from so-so to stellar: 1. The entry page should download as quickly as possible. “Make sure important stuff loads in

Buying data to append to your housefile can seem like a risk. How can you be sure that your investment will pay off? And perhaps more importantly, how can you be sure you’re not squandering your IT department’s limited time in uploading the appended data? Your answers to these questions will depend on how you plan to use the data you buy. Some data purchases, such as National Change of Address, have a clear and measurable return on investment (ROI). You can directly account for the expense of the data purchase and upload, then compare that expense to the new or additional revenue

Adding targeted product groupings that give your business customers more for less, or that present solutions to their needs, certainly will boost your catalog’s revenue base. Product bundles and kits easily fit that bill. An example of a bundle offer for a consumer catalog: A cookware catalog that sells kitchen knives could sell a paring knife and a filet knife but offer both together at a modest discount. A kit differs from a product bundle in that it ultimately marries products that will complement one another under one SKU and gets the customer to an end goal of some sort. Keeping with the

The Home Shopping Network, QVC, ShopNBC -- cable television is finding a new audience, and it’s not limited to jewelry buyers paying in installments. Business-to-business catalogers are making their entrance on the small screen. Electronics, printers, cleaning supplies, tools, office supplies and even food gifts are enjoying a bit of sweetness in their sales. One tip before plunging into cable: Ask the producers about who owns the transaction data, and get information about the channel’s typical buyers. J. Schmid& Assoc. (www.jschmid.com) is a catalog consultancy based in Mission, Kan., (913) 236-8988.

Particularly challenging in today’s business-to-business (b-to-b) catalog environment is testing new ideas that can have a positive impact on future revenues and profits. And if you have a big, perfect-bound catalog, effective testing can be even more problematic. But you have alternatives that can help you present new merchandise and offers or target a special message to a specific customer segment. In Your Creative While consumer catalogs have used order-form changes to test offers, messages and even products, b-to-b catalogs — with their more common single page, back-of-the-book order form — usually must find other ways to test new ideas. It might

quare inch analysis (SQUINCH) is an extraordinary tool for consumer and business catalogers alike. Sorted and executed the right way, a comprehensive SQUINCH can serve as a creative road map to your catalog campaigns, just as your contact strategy defines the plan from a marketing perspective. A comprehensive square inch analysis allows you to evaluate product sales and placement to determine whether the right product, price point or category is given the appropriate amount of space in the right location in your catalog. And by basing the analysis on customer behavior, as culled through transactional data, you can keep your “gut feeling” from being

Many business-to-business (b-to-b) catalogers fail to periodically refresh their creative elements and end up making common mistakes in copywriting, photography, layout and design. To discern if you’re guilty of stale or ineffectual catalog creative, ask yourself the following questions. “Am I employing copy that’s appropriate for b-to-b customers in particular?” “B-to-b products tend to be more practical because they’re meant to help customers solve business problems,” says Sarah Fletcher, president of Charlestown, R.I.-based Catalog Design Studios, a catalog consultancy. You can’t sell on emotion in a b-to-b catalog like you can in a consumer catalog, she continues. Gina Valentino, vice president and general manager

For Edward Don & Co., supplying “everything but the food” has long been its motto. The foodservice equipment supplier sells its customers, including Applebee’s Restaurants and the Opryland Hotel, a range of items, from serving glasses, plates and napkins, to kitchen utensils, stoves and fryers. While those clients enjoy browsing their “Don” catalogs for the latest trends in how to use a martini glass to serve chocolate mousse, the same restaurant managers aren’t likely to buy a new $10,000 refrigerator unit off the page of a catalog. So Don’s 11 business-to-business (b-to-b) catalog titles always will be an integral part of the