Avoid the Head on Collision

I've got some good news and some bad news for B2B companies. Back in July, 2005 there was an article in www.directmag.com on direct mail and how companies were switching to online catalogs and that the "biggest obstacle to catalog business growth was the expense of mailing, distribution and delivery."

Now here's the bad news. What was just an "obstacle" in 2005 may turn into a full
head on collision this year with the US Postal Service.

If you are considering direct mail, act quick because it looks like postage is going to increase again in May 2007 after an increase in 2006 and rumor has it rates will increase again in 2008!

"Although the average rate increase will be 7.6%, many industry watchers say that number is deceptive. Rather than a straightforward hike, the proposed changes are so complicated this time that in some cases rates could be raised as high as 40%, according to some in the catalog industry." says BtoB's magazine's Carol Krol in Postal Service proposed rate increases leaves industry in state of shock. The final decision should come this week.

This may all seem like a minor frustration to the average person on Valentine's Day but for businesses looking to send out direct mail or catalogs this can do some significant damage to your bottom line. If people are going to pay bills, get their news and read magazines online the US Postal service is going to need to make up the revenue somewhere but the increase has the Direct Marketing Association is hopp'n mad!

The Direct Marketing Association President CEO John A. Greco Jr. said "The reduction in mail volume alone might well be enough to send the Postal Service into a death spiral of reduced revenue, halts to infra structure improvements and increases in postage rates for all classes of mail." in a March 12, 2007 article by Carol Krol Proposed Postal Rate Hike Leave Mailers in Shock. The President-CEO of American Business Media said "The people that will be hit hardest will be the smallest companies that can't co-palletize or co-mail. These are some people that are going to get hurt." in Postal Rate Hikes Worry the Publishing Community

Now for the good news. The research is in and the postage hike should not be a big issue for industrial companies. B2B companies know where their buyers are and studies show they are online. However there are still some B2B companies out there that are spending their limited marketing dollars mailing catalogs and brochures to engineers and purchasing agents who are sitting in front of a computers all day, with the Internet at their finger tips. These buyers know that they can always get the information they need online so thousands of marketing dollars just gets tossed in the shredder.

Want to know where the buyers are and what they are looking for online? Just take a look at the results below from a recent ThomasNet/Google study. Today your website is serious marketing and companies that understand this will get the lion's share of the business.

REVIEW SOME CASE STUDIES:

Minor Rubber is having huge success with its online catalog stating"...34-40% of our hits are turning into business." read the full case study

Thermax CDT's Marketing Manager was surprised at how easy the process was to getting an online catalog.
read the full case study

Coburn-Myers was looking for an inexpensive online catalog for their vast product line. "...they receive at least ten requests for quotes (RFQs) a day via their Thomas online catalog"
read the full case study

Need more info. Just give me a call or email...
Mary Dykas 860 601 0150 mary@trconn.com

78% of companies researched said they plan to redesign their site this year.
Thomas/Google Study

#10 Completely searchable so buyers find what they want fast.

#9 Your customer's mailroom can't decide to toss this catalog in the garbage.

#8 Your customers always know where to find it.

#7 It won't ever be used as a booster seat. :)

#6 You won't have to do thousands of reprints because your phone number was printed wrong!

#5 Increased traffic..the Search Engines love them!

#4 You can add new products and services in minutes instead of weeks.

#3 Distribute them online and through email for FREE!

#2 You won't fall victim to these postal hikes!

And the #1 reason to have an online catalog…

Studies show that 9 out of 10 of industrial buyers start
with the Internet when looking for a new
supplier or product and here is what they did:


Thomas/Google Study

So relax about the postage hike and make sure your marketing dollars are going to where your target market is. You need to be where the buyers are and give them the information they need in the format they want.. searchable, detailed, online catalogs and save your postage for your valentine.