Sponsored Content WEBINAR: ELECTION 2008: E-mail Tips from a Political Insider   WEBINAR: Becoming the Illusionist: The Magic of Using "Brand" to Drive Response without Results Disappearing in the Process   WEBINAR: Score and Win Through Cooperation   TOOLS OF THE TRADE: Holiday's are prime-time for email marketing - maximize your ROI by getting to the inbox   ON DEMAND WEBINAR--MASTER CLASS: High Performance Online and Off-line Strategies for Large Scale Customer Acquisition   FREE WHITE PAPER - Direct Mail and the Internet Find any supplier you need - agencies, CRM, fulfillment, lists, e-commerce, paper, printers, telemarketing, and more. Featured Categories Lists and Data Telemarketing Database Marketing E-commerce Web Marketing Agency & Creative Services Print, Production & Paper Lists and Data Processing :: view all categories Get free access to more than 50,000 list data cards - one of the most comprehensive databases in the industry. >> Search Now DIRECT Buzz Blog Webinars Buyer's Guide Calculators JobZone ListFinder Promo Calendar Research Store E-Newsletters Print Magazine This Month in Direct Magazine Deal With It Direct had a full house for this year's list roundtable. Considering all the additional responsibilities on brokers' plates, that's impressive... See Full July Issue

This is not a happy time for catalog marketers.

Yes, they got a break on postal rates (as if any rate hike can be called “a break”). But paper prices are rising while sales remain flat for many firms, as Beth Negus Viveiros reports in our cover story.

And, as if to symbolize it all, Lillian Vernon and The Sharper Image have filed for bankruptcy protection.

What do you do if you haven't quite reached this point? You can perform small tactical exercises like trimming paper size and cleaning up your list.

But it may be time, as LBJ used to say, to lift up the horse's tail and stare the situation straight in the face.

That means redefining your business, as DMers have done throughout history.

Hank Johnson took Spiegel, the general rust-belt catalog that offered easy credit, and turned it into a high-tone women's apparel book.

Tom Foster, founder of Foster & Gallagher, realized that the gift and tchotchke business wouldn't last, and started buying up horticultural catalogs.

And several companies have recreated themselves and are now doing much of their business online.

How do you figure it out? You can't by poring over Excel spreadsheets.

Instead, get out of the office. Take your key people to Tidewater, VA. Ply them with food and drink. Brainstorm for a day or two without the phone ringing.

If you can't afford that, take over the back room of a local tavern for an afternoon. And ask folks to dress down for the occasion.

The goal is not merely to survive for the next 12 months — it's to do a makeover.

Here's one more piece of motivational advice: People are afraid of losing their jobs. Try to avoid that. Cut other costs, freeze wages if you must. But keep the seats filled — you're going to need that talent.