Can a Small Cataloger Compete?

by Katie Muldoon

• This past holiday season, as many as 25 catalogs hit my mailbox daily. The mailman acknowledged that the local post office simply couldn't keep up with the deluge. “We have to hold some of the catalogs for a few days just to squeeze your first class mail into the box” was the gist of what he told me.
  
  It seemed as if some well-known catalogs, like Bloomingdale's, were sending out a new catalog every week. I received 37 different food catalogs alone (not counting the many repeat mailings in that category). Is it possible for a small, less well-funded business to compete in such a crowded atmosphere?
  
  Do small, lesser-known retail stores still exist and even thrive? Yes, but not by doing what they have always done. Last October Time magazine reported that “despite the Starbucks blitz, independent java joints have increased from 8,200 in 1999 to about 8,800 today” and “independent bookshops have battled successfully to hold a steady 15% share of the market since 1999.” These are just two examples of product categories you might have expected to see demolished by the onslaught of heavily promoted, high-profile coffee shops and bookstores.
  
  Pint-sized retailers compete by doing something as simple (but really helpful) as displaying best seller lists. Or they create an environment that doesn't fit the image of, and can't be sustained by, the chains. One pet center specializes in unusual pets and makes sure to keep cute creatures around for customers to get close to.
  
  Another way, of course, is to really be the expert in a given field. It was interesting to read a magazine's recent review of two new bicycles being offered at competing shops. The higher-priced small store won the magazine's recommendation over the bigger store because the small store's employee knew the right bike for a person's needs and size. Given that, the reviewer felt the extra cost of the bike at the small shop was worth it.
  
  So what are some of the things a small cataloger might do? Exploit the things your firm can do better because of its smaller size. Some extras you might already be doing, but not bragging enough about, are:
  
  Testing products in-house. Why contract with a “testing clinic” if you can do it yourself?
  
  Including batteries in items offered for sale rather than selling them separately — or letting the customer discover when the shipment arrives that they're needed.
  
  Taking the time to get reviews from the product's manufacturer/distributor or by searching the Internet.
  
  Keeping yourself in customers' minds not by excessive mailing, but by giving them a way to remember you. Consider including, in outgoing packages or bound into catalogs, stickers with your company name, phone number and Internet address, thank-you cards that celebrate your customer's birthday or anniversary of their first order with your company, refrigerator magnets with company info, pens, calendars, etc. Include your tagline or slogan; something like “ABC delivers when you need a last-minute gift.”
  
  Remember: Service, service, service. It's almost always what small companies do best, but strive to make sure it's being done by constant monitoring and regular employee training. In the heart of last December's holiday buying season, The Palm Beach Post ran this cover headline: “Retailers Are Tightening Return Policies to Save Money.” Just what the holiday buyer wants to hear. The same article confirmed that customers do care about how they're handled after the sale, as “about 5 percent of Target's customers have stopped shopping there because of its new [return] policies.”
  
  Checking your competitors' return policies and attempt to provide a more lenient one. Naturally, you'll need to make certain that your policy does not erode profits, so do everything you can up front, through understandable copy and photography, to help assure that the desire to return is minimal.
  
  Mastering the Internet. Nobody knows how large or small you are here and a smaller company's ability to be quick in answering questions, or just generally responding, can help assure a memorable experience. Don't, however, “look small” by forgetting about corporate branding. Too many smaller companies design their Web site one way, the catalog another, and so on.
  
  Each element that the customer will see must reinforce your overall graphic positioning. Use each avenue for its strengths: the Web, for instance, is not always the most beautiful of environments, but it's great as an interactive or informative resource. It should be designed so well that your customers become addicted. The catalog and the store, on the other hand, can create a lush atmosphere that shoppers should want to emulate in their lives.
  
  Don't be afraid to offer some of the same promotions the big guys do. You may think you can't afford it, but in truth, you probably can't afford not to do it. L.L. Bean offered free shipping this past holiday season. In test after test, I have found that free shipping was the highest performer, but sometimes the cost of shipping didn't make up for the extra revenue generated by the offer.
  
  Spending time conducting regular research with your customers by inserting small questionnaires in outgoing packages. Sure, it's even more informative if you can research those who requested your catalog and didn't order and those who stopped ordering, but any well-done survey is better than none. Always put budget money aside that'll allow you to look into what your customers actually want. It's definitely cheaper and more efficient than guessing!