Break The Chain

Entrepreneur,  May, 2000  by Don Debelak

• E-mail
• Print
• Link

Need an audience for your latest invention? Skip the giant retail. chains--mail-order catalogs might do a better job of hitting your target.

INVENTORS WHO THINK they have the next great product have been asking the same question for years: How can I move my products from local stores to national retailers? Because that jump is almost impossible to make in a single bound, many inventors opt for mail-order catalogs as an intermediate step.

Why catalogs? For a variety of reasons, actually: Catalogs will order based on a pre-production model and place orders of up to $50,000; they'll provide valuable proof for how well your product sells and let you make all your sales calls right over your telephone; additionally, catalogs are generally prompt with their payments.

Chris McKay, 52, co-invented the DoodleTop, which was a big hit in the toy market in the mid-1990s. The product, which consists of a marker pen point that draws spirals while it spins, is currently sold in toy stores nationwide. But in 1997, when McKay came up with his next invention, the Magnawatch (a watch with an extra lens that can be used to magnify small print), he decided to launch the gadget through catalogs instead of large chains. With Magnawatch featured in about 5 million catalogs this past Christmas, McKay predicts that this will be yet another banner year for his Direct Hit Products, located in Camel, California.

He expects to see sales of up to $5 million this year.

Initially, McKay thought to only market the watch to seniors, but it turns out the product appeals to travelers who use the watch's magnifying lens for reading maps, and business people and lawyers who need to read fine print in contracts and Net addresses on business cards. McKay has since found the most success in catalogs such as National Geographic, Signal and Norm Thompson, which sell unique products for travelers. Products in those catalogs tend to sell for less than the Magnawatch's $49 street price, but McKay is currently developing a premium version that will be a better fit in higher-priced catalogs.

SECRETS TO SUCCESS

McKay believes catalogs make for a fantastic marketing vehicle. First, the catalogs allow him to build a brand image. "Customers could potentially see the Magnawatch a dozen times," McKay says. "Catalogs build awareness."

Another benefit: Catalog buyers decide whether to buy from a picture and possibly from a prototype. This means that the product may only have to be produced once the orders start coming in. "I like to give buyers several options of the products they can buy," McKay explains. "Once they decide, I can then produce the model they've selected. There's plenty of time to produce the products, as catalogs typically give two to three months of lead time."

Reason No. 3: McKay likes catalogs because he doesn't have to compete with giant watchmakers like Casio. "The big [manufacturers] don't want retailers to handle a product from a small company," McKay says. "Catalogs, on the other hand, [prefer to sell] products [not carried by] the big retailers."

Last but not least, perhaps the most important benefit to selling in catalogs is that they can show a photo of the product actually being used, "I'm not sure people would really [understand] all the benefits of the Magnawatch in a store, where it's not displayed," McKay says. "In a catalog, the product can be shown in use, and the reader immediately picks up the benefits of the product, plus, with a catalog, you're not fighting for shelf space."

MAKING IT HAPPEN

Think you're ready to sell to a catalog? Choosing the right catalog is the first step to success. But before approaching a catalog, you'll need to get a copy of it and check out the kind of merchandise it carries. You'll also want to make sure it sells products like yours, and that your price point is comparable to other products in the catalog. You should even go so far as selecting the best pages where your product could go. All that information will eventually come in handy, because your next step will be to write the catalog company directly, telling whoever's in charge that your product would be a perfect fit. Simply call the company and ask which buyer handles your type of product, and then send your package to that person.

McKay even goes a step further when trying to place his products: Instead of sending the standard flier to each buyer, he makes up a mock catalog page featuring his product. "I want the buyer to see exactly what my product would look like in that catalog," McKay explains.

He also likes to present three or four different designs to each buyer: "Presenting options improves the chances the buyer will like one of the options," McKay says. "It also tells the buyer that we're easy to work with, and that we'll do whatever it takes to make the catalog buyer happy."

When it comes to selling to catalogs, you've got to be persistent. "You need to keep calling the buyers, even if they haven't taken your product before," says McKay, who also says that persistence helps show the buyer that you'll be dependable. "The buyers are constantly changing, and the new buyer might like your product, while the old buyer didn't. The catalog might also have ordered another product where the supplier can't make delivery." Don't give up on the catalogs you're interested in--you might get your break.