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Direct talked with catalog consultant Katie Muldoon to get her thoughts on the challenges small catalogers face in today's market.

DIRECT: What are the major hurdles for small catalogers these days?

MULDOON: As always, economy of scale is the biggest thing. Another problem is that [small catalogers] often don't have the analytics. They don't have the time or the money to build the business in a rational manner. Small businesses often are very emotional, which is fine to begin with — but not when you get bigger. As for merchandising, you almost have to have proprietary product now, and that's very difficult for small catalogs, because it costs more per product than they generally can afford to sell it for. And when someone has an idea or product that's truly unique or they've found a different way to position it, they risk getting knocked off by somebody who has the power to mail 20 million catalogs rather than the few hundred thousand the smaller person can afford.

DIRECT: Are there any creative issues particular to small catalogers?

MULDOON: Not really, because creative is one of the least expensive areas of the catalog. It doesn't take money to come up with something that's wonderful. I don't think brilliance is equated with cost.

DIRECT: Are there any mistakes you've seen small catalogers make time and time again?

MULDOON: Yes — they'll bite off more than they can chew in a variety of ways. I've had people try to do too much too fast and not really understand what the result will be, so they wasted a lot of money. [For example,] they may get too much PR. Many potential buyers may request a catalog [on a whim] due to PR, but then not make a purchase — and that makes the acquisition cost per customer too high. Also, smaller catalogs don't always understand how much time everything takes. Sometimes they're doing other jobs at the same time, or not hiring the appropriate number of people. I'm all for being lean, but it can get to a point where it hurts the business.

DIRECT: Is the Web making it easier for a small cataloger to get in the game?

MULDOON: I think it's easier. But I've [spoken with] people recently who just wanted to get into print with no [online presence]. I say, ‘I'm not going to help you with that. Because as far as I'm concerned, if you're small, it's a lot more economical to start with the Internet and move into print.’ There's a million reasons to start that way. It's the new version of starting a catalog on your kitchen table.