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Summary

The economy’s in the tank. Costs continue to increase. Response rates are down. What can you do to cut costs that you haven’t done already? You can’t slash and burn your way to prosperity, even in difficult economic times. I see catalogers making cost-cutting decisions that’ll negatively affect their businesses in the long term. It’s not just a matter of reducing expenses, but rather a combination of continued marketing with smart expense control.

One of the first things catalogers do to save money is cut circulation. Circ cutting can accelerate a downward spiral, which is difficult to reverse. Reducing circ will reduce the amount of business you do through the Internet (the catalog remains the largest single driver of traffic to the Web — see the authors February column for more on that).

Above all else, don’t let your 12-month buyer count decrease. With this in mind, here’s the authors five-step economic checklist for reducing expenses, followed by a three-step plan to increase your revenue affordably.

© 2009 Catalog Success
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Catalog Success

Target Marketing Group

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