How Small Businesses Can Succeed in the Catalog Business

Catalog Success Magazine has an interesting post on how a small business can play with the big boys -- and win -- in the catalog business. Here are some of their tips:

• The key to success is “unique product, unique product, unique product.”
• Protect your unique products via copyrights, trademarks and patents.
• Develop efficient operations, even considering outsourcing if you cannot efficiently handle manufacturing in-house
• Test at least one thing — lists, covers, even trim size — on every mailing.
• Set high goals and act like a big guy, to become one.
• Start by assembling a talented, competitive team that shares your values and work ethics, then put the team first and owner’s profits second by sharing the rewards through promotions and great benefits.
• Avoid me-too products and make sure you understand your products’ benefits
• Also avoid excessive backorders
• Do not skimp on customer service.
• Stick to a narrow niche that lets you target a core of loyal customers with unique products.

Marketing to Institutions

Institutions such as schools, universities, hospitals, government offices and libraries represent a $4.1 trillion market, according to a November 2006 Direct magazine article "Predictable But Not Easy" by Larry Riggs. That's a big market that small businesses can target!

However, the article points out that it is not so easy to reach this market. For one, these institutions are governed by a different set of accounting principles. Here are the tips from the author on how to reach this market:

• Understand that these organizations need to spend their entire budget within the fiscal year, but timing is everything
• Target school districts between April and June, when their fiscal year typically ends.
• They have concentrated buying powers, but sending your catalog or offer to the purchasing officer is not always going to work because this officer is not likely to know the needs of all departments.
• If you are targeting colleges and universities, it is best to target deans and department heads.
• If marketing to elementary and high schools, target the principals, and even individual teachers

Read the full article at Direct magazine