A Lesson To Learn…
Today’s conventional wisdom says that the internet is now the end-all, be-all of nearly everything. That supposed wisdom, however, is anything but, particularly where advertising and marketing is concerned.
Last year, Cabelas reported total sales of just over 2.5 BILLION DOLLARS. These are smart folks – they don’t miss a trick. They possess a computer retrieval system that informs them where their customers live, their age, their sex, their height, their weight, their shirt and shoe size. And much, much more. No kidding. They didn’t get where they are today by wasting money on advertising and marketing campaigns that don’t work.
Take a look at the last two full line catalogs Cabelas mailed to me (these don’t include the other 6 seasonal and specialty catalogs they’ve mailed me in the past 3 months). What you see here are 1400+ page catalogs which weigh almost 5 pounds each! The cost to produce, print and mail these behemoths runs into several dollars each. And if not for the fact that they print millions of each edition, it would be many times over that amount.
If Cabelas could reach the bulk of their market via the internet, they would certainly do so and thus dispense with the fortune they spend printing and mailing these large, heavy catalogs. They’re not fools and they don’t throw money down the drain. And yet, they continue to produce, print and mail these extensive catalogs to the tune of millions of copies each year. The reason should be obvious.
There is a lesson here for the rod building industry. If you wish to reach the bulk of the mainstream rod building craft for any reason, you will have to do more than make a few posts on the various rod building forums. Less 5% of the world’s custom rod builders are active on the internet. This is why those who depend solely on internet advertising to market their rod building products will never see the returns they hope for – they’re missing 95% of the market!
Remember, Cabelas doesn’t produce, print and mail these catalogs because they did 2.5 billion in business last year – rather, they did 2.5 billion in business last year precisely because they produced, printed and mailed those catalogs. Direct mail continues to kick the internet’s butt. If you wish to be successful, learn from those who already are. They know something.
Tom Kirkman
…………………
Tom
Has there ever been a demographic study of Rod-builders. Age, sex, and race type of thing? My reason for asking this is that younger people are getting their information from the internet, they don’t watch TV news or read newspapers. Take me for an example, I’m staring 65 right in the face. What do I do with my Blackberry cell phone, I use it to call someone and on rare occasions I text my grandkids. What are my kids and grandkids doing with the same device, talking, texting, playing games, reading books, doing their banking, social connecting and so on and so on. There are hundreds of thousands of apps for these smart phones. I may like my catalogs but when I need parts and pieces the first place I head for is online. I understand what you are saying about how these big companies gather information on a person and then target them with specific information that would fit their interest. But I would bet they are also knee deep in reaching customers through new technology keeping a delicate balance between old and new. I would also bet they get the vast majority of their information about their customers from their customers online searches and purchases.
Bob
Cabela’s, Orvis, LL Bean, Bass Pro, etc., all publish catalogs because direct mail is far more effective in creating sales than the internet. When Cabela’s for instance, mails out a round of a million catalogs, a week later their online sales will soar. This is because folks get the catalog, browse it and then decide to go online to purchase something they saw in the catalog. If they could do this sort of thing anywhere near as effectively by internet advertising and marketing, they’d certainly do so. As it is, companies who have all their eggs in the internet basket are missing the lion’s share of their market.
If I marketed the Expo exclusively on the internet, we’d be lucky to see 150 people show up.
I don’t disagree that the catalog is the most effective way of for the retailers/wholesalers to get their information out. My point is that “Them Times Are A Changing” heck there might not even be a postal service in our future. Seriously the only thing that’s keeping the post office open now are those catalogs and mountains of junk mail and the tax payer. I don’t see how UPS or FedX could cost effectively take up that slack.
I’m just saying that they need a dynamic program to advertise their weirs and stay on top of these changes and be willing to change with them. Just as the rod builder needs to think outside of the box on how to get his/her information.
Bob
Bob,
They already have a dynamic program to reach the potential customers – direct mail. It works and it works extremely well.
If and when that changes, you can rest assured that folks like Cabelas will be on top of it. They didn’t get where they are by turning a blind eye to any viable marketing opportunity. They know what they’re doing.
I agree with what you said, Tom. I know that just having a website will not bring much business. I have experienced that. Interestingly, when someone hears that I build rods they ask if I have a website. Maybe times are changing, but, until mail is gone I want to know how to take advantage of it. My father was a newspaper editor, and he always told me “it pays to advertiseâ€.
One of my tasks now is to learn how to do it. The advertising part is easy. Getting it into the customer’s hands is what I need to figure out.
It would be great if Rodmaker Magazine would run a series of articles aimed at the marketing side of rod building.
As a matter of fact, we’ve done dozens of business related articles. We’ve offered advice on marketing, advertising, how to reach your target market, etc.. We’ve done articles on how to price rods, what builders in various geographic locations are charging, and getting. It may be time for me to package them all up in a single special edition CD and offer them that way. Thanks for the suggestion.
If I recall correctly it was written that an average hit on a web site last 15 seconds or less if a persons finds exactly what they are looking for in that time frame it may become a sale, which is one of the reasons why so much money is spent in developing a web site.
A catalog on the other hand is usually browsed cover to cover while the individual is in a relaxing atmosphere with no pressure to rush and decide what they want or need, where the internet does excel occurs when the person with the catalogs orders on line, here the speed and ease of use enhances and makes the sale far easier then filling out an order form and mailing a check.
John,
And that’s the point – it’s the catalog that drives folks to a company’s website to purchase product. The reason that companies like Cabelas, Orvis, LL Bean, Mud Hole, etc., have strong internet sales is precisely because they engage in large direct mail catalog campaigns.