Merchandising

In last week’s feature, I discussed the basic process for square inch (squinch) analysis and how the sales per inch metric can determine which products in your catalog deserve more space and which can be eliminated from the catalog entirely. This week, I’ll discuss other squinch metrics that can be tracked and those worth pursuing. Five additional metrics you can add into your squinch analysis spreadsheet are: * Profit per inch by item; * Sales per inch by category; * Profit per inch by category; * Sales per inch by page; and * Profit per inch by page. Profit per inch: Although it’s available in many software packages, especially

Because catalog space costs you money, you need to know which products are paying a return on investment and those that aren’t. However, square inch (squinch) analysis can be used to determine the relative strength of your customers’ demand for each and every product. This invaluable information then is used to make decisions about the catalog, such as featuring high-demand products and eliminating those with little or no demand. More importantly, however, squinch analysis provides a guide for correcting marginal items and shows you how to make them winners. The result is often an increase in total sales per catalog –- not just products

The advent of e-mail as a marketing medium has provided catalogers and online marketers with the ability to reach their customers with personalized, highly relevant messages that drive them to purchase again and again. In fact, 39.6 percent of respondents to The Direct Marketing Association’s “2005 Postal and E-mail Marketing Report” used e-mail personalization to increase response rates last year; 93.2 percent of those marketers said the tactic was successful. But before you can start slapping your customers’ names and other personal details on all of your outbound e-mails, there are five things you’ll need, according to a recent white paper from catalog management

Regularly benchmark your pricing policies against that of your competition and also within similar industries. Make modifications as needed. A small price increase or decrease can have a dramatic effect on your bottom line. —Melissa Rothchild, senior director of marketing communications, B-to-B accounting products catalog CPA2Biz

Some in attendance at the recent New England Mail Order Association conference in Saratoga Springs, N.Y., were a little taken aback by the presence of Tom Haugen, an executive director with Li & Fung (Trading) Ltd., a $7.1 billion division of the global outsourcing giant Li & Fung Group. After all, this is a conference that’s historically been targeted primarily at small- to mid-size catalogers from the eastern U.S. But Haugen, whose firm represents such catalogers as Blair, Haband and Restoration Hardware, offered some eye-opening trends on product sourcing around the world that can ultimately affect even the smallest cataloger. For starters, he noted that

As the holiday season approaches you’re no doubt battening down the hatches for the season that is both the bane and blessing of every business. According to the National Retail Federation, one-fifth of all U.S. retail sales are holiday sales and with a 5 percent increase expected in 2006, it’s sure to be a busy time for any catalog business. It’s in this pre-holiday calm before the storm that planning, creativity and smart investments will help you get the most out of the season. Here are three tips to help multichannel merchants do just that: 1. Cut down on undeliverables. Whether it’s crazed online

One of the most-asked questions I get is, “What product density is right for my catalog?” There are two main drivers to finding your appropriate product density (or the average number of products per page): your brand and your square inch sales report. Brand. In general — but not in every case — the more upscale the brand, the lower the product density; the more downscale the brand, the higher the product density. So if you’re starting a new catalog and have no idea what density to use, look at competitive catalogs (or noncompetitors who sell to your audience), and take your cue

Like it or loathe it, Federated Department Stores continues to rename its acquired department store chains with the Macy’s moniker across the country. And Margaret Getchell would be proud. Believed to be the first female retail executive, Getchell changed Macy’s from a fancy dry goods store into a department store with sales in 1870 totaling $1 million. She was quoted as saying back in 1866, “Never forget to astonish the customer.” And today, her statement is an integral part of Macy’s new marketing campaign and is prominent in all new store displays. Back then, Getchell achievement astonishment by addition. According to Macy’s brand history,

How do you know if your product development process is broken? One good way to assess it is to see if you are getting lots of “no” answers from your team when you suggest new products. As in “No, we can’t do that,” “No, we’ve never done that before,” “No, a custom version will take too long” or “No, we don’t have a vendor for that.” These could be signs and patterns that your process and/or people are stuck. An ideal process is full of yes answers; that is, the right kind of yes answers. Below you’ll find the steps to get your process

I’m often surprised by the answers I get from catalogers when I ask them, “What new products are you featuring?” They usually respond with a round of additional questions, such as “What do you mean by new?” or “How many new products are enough?” Often they’ll simply say, “New products never work for us.” But new product development should be the lifeblood of every multi-channel marketer. And if done correctly, it can be one of the most rewarding aspects of a merchant’s job. To get your product development program on the right track, consider the following: * Reinvigorate your product line all the time. Even if