Forums: Discussions for entrepreneurs and small business.

i have a new product that i want to sell to the catalog companies, the ones you probably receive with around the house products.  like, improvements, problem solvers, lillian vernon, etc.

couple questions before i approach them

what is a typical markup they want?

are there distributors that i need to go through?

do they all take inventory or drop ship?

is it common to sell to more than one at the same time or is it better to enter into an exclusive arrangement with one 

should i just target skymall only which claims 1.8 million passengers per day

will i be required to pay the catalog for my ad space, and if so, how much should i expect to pay?

anything else i should know?

you advice is greatly appreciated

thanks all

jo anne

As an internet/catalog retailer I will offer you my perspective.
- markup is ideally 2x
-you don`t have to go through distributors if you are willing to do some legwork and find the right people within a company to contact.
-drop ship-v-inventory is up to you. You set your own rules on this one.
-you are just starting out so why put all of your eggs in one basket? If they drop your product then you have no back-up.
-Catalogs don`t carry ads, only magazines. Your job is to market your product to retailers, they market it to their customers. I don`t know how Skymall works but you need to contact them and get information for potential advertisers which includes prices, set-up fee`s, demographics, and hopefully some conversion data.

There are many people at SUN who have brought products to market. Check out the forums, there are many threads that will be of interest to you including a forum on how to bring your invention to market.


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Sharon Murphy
Owner
Northwoods State of Mind, Inc.
NorthWoods

Hi Jo Anne
I`ll  preface this by saying . . . it depends on the product you`re selling.

• Markup is usually above 50%.
• I never used a distributer.
• Drop ship: most hold the inventory, but i think Sky Mall does a lot of drop shipping. The markup is much smaller if you`re the drop shipper.
• Exclusive arrangement: Only unless you have some really good reasons. You`re tying-up the future of your company for a year or so.
• Sky Mall only: No, you could pursue then for years waiting for them to pick you up.
• I never paid for product space. Maybe others have.

Anything else: They usually pay for shipping to their warehouse, So its FOB your doorstep.
Some of the larger companies can have complex packaging requirements for the master boxes you ship. These requirements mainly focus around  strict labeling systems that`s different for each catalog. Not a big obstacle, just time consuming.
The best way to get a companies` attention, is for them to see your product in some one else`s catalog. The first catalog is always the hardest.

Jo Anne,  I got into my first catalog by simply calling the company, asking for a buyer or merchandising department, asking them nicely if they mind me sending them some information by email.  They beat me up on the price, but the catalog goes out to over a million people and companies and like Jeff said, other buyers are watching their competitors. 

You could also hire a manufacturer`s rep that deals with catalog companies, they will do it for 5%-10%.

Good Luck!

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Trent Rousey
President - 3R Products, Inc.

Hi Jo Anne,

Here`s a catalog that caters to products created by women http://www.femailcreations.com/we_sell.aspx

Timing will be key for you as most catalog companies are already planning for their 2008 catalogs.

Good luck to you!

 

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Wishing you all continued blessings and successes!
~Roshelle (aka SparkleGirl), SparklingCards.com
We provide customized cards that make your gifts shine! Also, our Wedding Day Survival Kit has been featured in America`s Bride Magazine.

Also, please check out my new venture, welcome2college.com - a FREE resource site for prospective and newly enrolled university and college students.

Hello everyone.  Thank you for the information and comments.  I am very grateful to all.

Jo Anne