Selling to Mail Order Catalogs

Sandy Paluzzi
The Bead Peddler

Wholesale selling to mail order catalogs is not for everyone.  You must be willing and able to produce hundreds of the same item in a timely manner.  That means having a steady, reliable source of supplies, blocks of time to put into assembly, and the patience to do repetitive work.  You must also be willing to do market research and possibly even hire assemblers to help during peak periods.   You also have to take shipping into consideration.  The heavier the item, the more it will cost to ship.  Also, each item has to be individually boxed for sale to the mail order catalogs.  The boxes do not have to be fancy or sturdy as they will be placed into a larger shipping box.  But the cost of this packaging has to be factored into your item's cost.  And it goes without saying that you have to sell at a price point that enables the mail order catalog to at least double your price.

If you're comfortable with all the above terms,  you may find selling to mail order catalogs a profitable way to grow your business.  The first thing you'll want to do is test market your item.  By doing the test market, you can determine both the demographics of your customer and also the true retail selling price. 

After you've researched the market strength of your item, you have to approach mail order companies.  My public library carries a copy of 'The Directory of Mail Order Companies'.  If yours doesn't, you may want to consider investing in this book.  It is published every year and is very pricey.  However, amazon.com carries reasonably priced used copies of last year's edition.  Select companies from this directory to research.  Most mail order companies now have a website so you should be able to browse their current offerings.  If you're considering a catalog that doesn't have a mirrored website, send away for a copy of the magazine.  Before submitting your article to the catalog buyer, you'll want to make sure your product matches that company's style and price point. 

Your catalog submission must be very professional looking.  If you're not a great photographer, hire a professional  to take your picture.  This picture is what will draw your buyer's eye to the item.  Prepare a product page(s).  This page will contain the product picture along with all pertinent information on the item.  List product size, materials, selling features and product lead time on your product sheet.  Also be sure to put your contact information on this sheet in case it gets separated from your packet.  If you're going to be printing out product sheets as you mail them, you can also list prices and quantity discounts on the product sheet.  However, prices can change over time so you may want to have a separate price list.

Once you have finished your product and price list pages, you are ready to write your cover letter.  This letter is your sales tool.  Make sure there are no spelling or grammatical errors.  Personalize the cover letter to each individual buyer.  You can send the same body to all the different magazines although you may want to point out different selling points to different catalog companies.  You can staple all of the pages together or place them in an inexpensive plastic report binder.  Do NOT fold the pages as you don't want creases on your product sheets.

Now you are ready to mail your sales packet to the mail order companies.  Most company websites list the department and mailing address of the buyer.  If they don't, you can call the company and ask where to send product submissions.  Mail order company phone numbers are listed in the The Directory of Mail Order Companies.  You want to call this corporate phone number and not the sales/customer service number listed on many websites.  The sales reps probably don't know where you should submit and definitely won't be happy fielding a sales call. 

Once you have submitted your sales package, sit back and wait.  As frustrating as it sounds, that is all you can do.  You can't follow up to make sure they received your submission.  You won't get through to the proper department.  If there is interest, the buyer will contact you for further information.

Mail order company buyers are busy.  If they are interested, it will take them several weeks to get back to you.  They then expect you to respond quickly.  Be prepared to ship a sample the next day.  Again you will wait.   It takes a while for things to wind their way through the channels of a mail order catalog.  Furthermore, companies start laying out and printing their catalogs months before they ship.  All in all, it will probably take you  6 to 8 months to receive your first sale. 

Most catalog companies are going to start by placing a small order  - a test order.  If your product does well in its test market, they will then buy in larger quantities.   However, there are some mail order companies that will ask you to 'drop ship' (ship directly to their customer) as they receive orders. If you agree to drop shipping, you will of course be compensated for shipping and handling.  In terms of payment, all mail order companies expect terms.  They plan on buying now and paying later.  Most companies expect to pay the net invoice 30 days after you ship.  Some suppliers are 2% off the net price if the invoice is paid within 10 days of shipment.  It's a matter of how quickly you need the money.

As you can see, wholesaling to mail order companies is a long involved process.  On the other hand, they have a steady loyal following of many tens of thousands.  Even in a small catalog, you can expect to sell hundreds of your item.  Only you can decide it is worth the time and money to put your goods in their hands.   

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