Merchandising

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

Problem: Seta Corp., a jewelry syndicator and the parent company of Palm Beach Jewelry catalog, continually looks to reduce labor fulfillment costs. Solution: Instituted employee incentive programs, improved automation, realigned scheduling and staffing, and streamlined distribution center operations. Result: Between 1999 and 2004, the cataloger reduced its labor fulfillment costs by 45 percent; at the same time, it increased employees’ average hourly wages. * The following functions are included in Seta’s labor fulfillment costs: receiving; quality control; stock putaway; picking/packing; shipping; engraving; returns processing and putaway; production maintenance; and all hourly and salaried payroll costs, including payroll taxes. If you’re of the

E-mail personalization is a lost opportunity, says David Daniels, research director at JupiterResearch, a Darien, Conn.-based business research firm. Such a lost opportunity is particularly troublesome, he says, in an era when the technology to do personalization is readily available. E-commerce merchants who responded to the e-tailing group’s fourth annual Merchant Survey, released last month, admit they still have a way to go in this arena. Following is how they answered the question: How do you define personalization relative to your Web site and e-mails? ¥ 7% said their sites dynamically show products based on customers’ past purchases. ¥ 14% offer tools that allow

The name Brylane traditionally has been synonymous with deliberate sales growth and budget-priced, conservative clothing primarily for middle-aged, large-sized women. But when the Paris-based Redcats, the home-shopping division of French company PPR, bought the multititle cataloger in 1998, it set out to apply a broader, more aggressive — call it “worldlier” — merchandising and marketing formula to Brylane. Fast forward seven years, and although the sales growth has yet to take off, notable transformations in the merchandising and marketing approach, corporate structure and company culture all have kicked in. Two of the New York-based company’s top executives — Chairman/CEO Eric Faintreny

If sales are dipping and your internal expenses are based on a plan you aren’t meeting, you need to get back on track. The questions to ask yourself: How do you react to less-than-desirable sales results? And how soon should you take action? While there may not be quick fixes, I’ve identified some strategies that can help you avoid a disastrous year. This month I’ll discuss generating additional demand revenue — not cutting expenses. It’s difficult to slash your way into profitability, and the long-term effect of that type of quick-fix can be devastating to business. Following are 12 ideas to take for

Introduction In this, our annual special report on merchandising, you’ll learn strategies on generating new product concepts from scratch. It’s a process that is part art, part science: from knowing when to listen to your hunches to understanding how to test products on the page. You’ll also learn six steps to successfully taking a plunge into a new merchandise category. And we’ve uncovered some best practices you can use to get your product vendors to deliver merchandise on time and on spec, and ultimately how to improve your day-to-day relations with product vendors. Lastly, you’ll meet one of your colleagues, Doreen Carstens, vice

The Cataloger’s Story Can an established retail and Internet merchant profitably start a catalog in this era of rising postal and production costs? Some catalog industry experts say the risks are too great and the ideal time to launch a new print catalog has passed. But is that really true? John Hambleton aims to find out. Hambleton sells surf-related apparel and accessories via two beach shops in Florida — Islanders in Fort Walton Beach and Pensacola Beach — and the Web at IslandSurf.com. His Internet sales have convinced him that selling remotely is a viable option for his merchandise offering. And so,

Catalogers should consider using the Web for price testing, said Daniel Dorzback, chief merchandising officer at Petals, a silk flower and decorative accessories catalog, when he spoke at the Hudson Valley Direct Marketing Association’s”Meet the Catalogers” luncheon held in Greenwich, Conn., in early April. “In our paper catalogs, we may run a promotional price test, but not a test across our entire mailing segment,” he said. “We use our Web site as a testing ground -- like a lab to look at different Web exclusives to see how customers will buy into new product categories.” The beauty of online product testing is that the Web provides”a

Successful outsourcing arrangements require a smooth, risk-free transition, because even the best intentions can be erased by a rocky start that threatens your business. Carefully researched and implemented outsourcing ventures for your distribution center, contact center or other operational function can be profitable for those who efficiently leverage a service provider’s capabilities. How do you ensure that your chosen provider doesn’t damage your business through a clumsy implementation? Conduct an effective selection process, and plan a controlled, realistic transition. Here are 23 strategies to employ. Do the Research 1. Nothing is more important than carefully checking a service provider’s references, talking to both

When catalog order management systems were first developed in the 1970s, they were designed to manage all aspects of catalog operations: from order entry, customer service and customer database management to response analysis, inventory management, purchasing, fulfillment, and returns. Thirty years later, they still are, which is why so many direct merchants can run their businesses on these applications without a need to add specialized solutions for things like warehouse management. Some companies, however, find their catalog management systems don’t provide the flexibility or sophistication they need to address their inventory or fulfillment challenges. For them, a warehouse management system (WMS) is a necessary