For decades, catalogs have been the backbone of many B2B suppliers’ marketing strategies. They’ve reliably brought in orders, deepened customer relationships, and driven revenue. But what once felt like a sure bet has slowly turned into a dangerous liability.

Enter, what I call, the “Catalog Chasm.”

This growing divide between the increasing costs of producing catalogs and their declining effectiveness is quietly eroding the profitability of B2B suppliers. Every year, companies are forced to make an impossible choice: spend more just to maintain last year’s revenue or cut costs and watch effectiveness nosedive. Neither option is sustainable.

And here’s the kicker: this isn’t a new problem. The Catalog Chasm has been widening for over a decade, bleeding businesses dry while they cling to a legacy strategy that no longer delivers the same returns.

This blog breaks down the numbers behind the chasm, explains why it’s such a massive issue for catalogers, and outlines actionable strategies to close the gap—or eliminate it altogether. If your catalog spend is going up while your results are trending down, keep reading.

The Problem: Catalog Costs Are Rising While Effectiveness Declines

If you’re mailing catalogs today, chances are you’ve felt the squeeze. Over the last decade, printing and postage costs have steadily increased, while response rates and revenue generation have slipped. This dynamic creates a no-win situation for catalogers, forcing tough decisions that often backfire.

Let’s look at how this plays out in real numbers:

• Last Year: You mailed 10,000 catalogs at $1.50 each. The campaign brought in $400,000 in revenue, giving you a solid return on your $15,000 investment.
• This Year: The cost of a single catalog jumps to $2.00. To keep the same $15,000 budget, you’re now mailing 25% fewer catalogs (just 7,500). The campaign brings in only $300,000—a revenue drop of $100,000 for the same spend.

Alternatively, if you increase your budget to mail the same 10,000 catalogs, your costs rise to $20,000. Even if revenue remains flat at $400,000, your profit margins take a significant hit.

This pattern—the “Catalog Chasm”—worsens over time:

1. If you cut circulation to save money, you lose revenue and erode customer relationships.
2. If you increase spend to maintain circulation, you face diminishing returns and ballooning costs.

The problem compounds when businesses fail to reallocate marketing dollars effectively. Instead of funding innovative channels or diversifying strategies, they double down on catalogs, hoping the next campaign will be different. Spoiler: it won’t.

The result? Companies slowly bleed profitability, burning time, money, and resources on a strategy that’s no longer paying off. Meanwhile, competitors who adapt and evolve are gaining ground.

This isn’t just a budget issue; it’s a survival issue. If your catalog strategy is stuck in the past, the chasm will only grow.

Let me just pause for a second and say this: I know this sucks and it's hard. There are no easy solutions when it comes to figuring out what to do about a marketing channel that's declining over time... especially one that's been so vital to your business for so long. I dealt with this reality as a Chief Revenue Officer at a B2B supplier. I get it, I promise. Keep reading and we'll work through this together.

The Impact: How the Catalog Chasm Hurts Your Business

For B2B suppliers, the effects of the Catalog Chasm ripple across the entire organization. It’s not just about higher costs or declining effectiveness—it’s about the toll this dynamic takes on your business’s growth, profitability, and long-term viability.

Here’s how it plays out:

1. Higher Costs with No Clear ROI

Catalog production isn’t just expensive—it’s labor-intensive. Teams spend countless hours planning, designing, and mailing campaigns, all while costs for paper, ink, and postage keep climbing. Yet despite this investment, response rates are falling, and it’s becoming harder to justify the expense.

The result? Your marketing budget is stuck in a losing battle: paying more to produce catalogs while struggling to hit last year’s numbers.

2. Missed Opportunities for Growth

Every dollar tied up in catalogs is a dollar that could have been spent on higher-ROI channels. Competitors are investing in digital tools like AI-driven ad campaigns, account-based marketing, or enhanced SEO strategies. Meanwhile, catalog-dependent companies are stuck in neutral, trying to squeeze blood from a stone.

The opportunity cost is staggering. By clinging to a declining channel, you risk falling behind more nimble competitors who are adapting to changing buyer behaviors.

3. Eroding Customer Relationships

Catalogs once had the power to deepen customer loyalty. Today, they often land in the recycling bin without a second glance. Customers expect a seamless buying experience—one that integrates print, digital, and personalized touchpoints. A reliance on catalogs alone signals to customers that your business is out of touch with their needs.

4. Long-Term Profitability at Risk

The Catalog Chasm isn’t just draining your marketing budget—it’s a slow bleed on your entire business. Over time, these losses compound, eating away at profit margins and stifling the ability to reinvest in growth areas. Companies trapped in this cycle often find themselves in survival mode, unable to innovate or break free.

Why the Catalog Chasm Won’t Fix Itself

If you’re waiting for printing costs to drop or for customers to suddenly start relying on catalogs again, you’ll be waiting forever. The forces driving the chasm—rising costs, changing buyer preferences, and declining response rates—are structural.

More importantly, doing nothing comes at a cost. Sticking with the status quo means the chasm will continue to widen, further jeopardizing your profitability and relevance in the market.

But the good news? There are ways to close the gap—or leave it behind entirely. With the right strategy, you can escape the cycle of catalog dependency and position your business for sustainable growth.

Up next: actionable steps to close the Catalog Chasm and future-proof your marketing.

Strategies to Close the Catalog Chasm

If your business is feeling the effects of the Catalog Chasm, you’re not alone. Many B2B suppliers are facing the same challenge. The key is to take action—proactively shifting your strategy to maximize returns, reduce costs, and break free from catalog dependency. Here are four practical approaches to close the gap:

1. Refine Your Targeting Model (Easiest)

Not every customer needs or wants a catalog. By identifying who truly benefits from receiving one, you can significantly reduce costs while preserving revenue.

• Who to Target: Focus on customers who consistently respond to catalogs and prefer purchasing through this channel.
• Who to Exclude: Customers who primarily buy online or through sales reps likely don’t need a catalog to convert.
• How to Implement: Use historical purchase data and customer segmentation to refine your mailing list.

This strategy ensures you’re spending only on the customers who deliver the highest return, cutting out waste and improving profitability.

2. Shift to Intent-Based Prospecting

Instead of blanketing your entire customer base with catalogs, use them strategically to acquire high-value new customers.

• Find Your Best Prospects: Use data analytics to identify individuals or businesses that resemble your top customers in behavior, demographics, or purchase potential.
• Measure ROI Clearly: With acquisition-focused campaigns, it’s easier to track the cost per new customer and evaluate the effectiveness of your catalogs.
• Limit Circulation: By focusing on intent-based prospects, you can achieve growth with a fraction of the circulation required for mass campaigns.

When catalogs become a tool for targeted prospecting rather than broad communication, they can justify their cost.

3. Phase Out Catalogs Gradually

If you’re not ready to ditch catalogs entirely, consider a phased approach over several years to test the waters and ease the transition.

• Use Holdout Groups: Select a portion of your customers to exclude from mailings and measure their response rates. Compare their performance to those who continue to receive catalogs.
• Reduce Circulation Incrementally: Start by scaling back low-performing segments or regions, reinvesting the savings into digital channels or other marketing experiments.
• Evaluate and Optimize: Use the data from your holdout groups to refine your targeting model, helping you make smarter decisions about where to cut next.

This method allows you to test the impact of reduced catalog reliance without risking a sudden drop in revenue.

4. Go Cold Turkey (Hardest)

For some businesses, catalogs have become a financial drain with little upside. If that’s your reality, it might be time to make a bold move: stop mailing altogether.

• When to Consider This: If catalogs are consuming significant resources, driving marginal revenue, and tying up valuable internal time, it’s time to let go.
• Redirect the Budget: Reallocate those funds into modern, high-performing channels like paid digital ads, enhanced SEO, content marketing, or AI-driven personalization.
• Rebuild Customer Touchpoints: Develop a multichannel strategy that integrates email, social media, digital ads, and sales outreach to replace the catalog as your primary communication tool.

Yes, it’s a leap, but for businesses that are feeling the full weight of the chasm, ripping off the bandaid can be the smartest—and most liberating—option.

Closing the Chasm: It’s Time to Take Action

The Catalog Chasm isn’t just a challenge—it’s an existential threat for B2B suppliers who rely on outdated strategies. If your catalog costs are rising while results decline, it’s time to make a change.

Whether you refine your targeting, use catalogs for new customer acquisition, phase them out gradually, or go cold turkey, the key is to act decisively. The longer you wait, the more the chasm widens—and the harder it becomes to close.

Remember: the goal isn’t just to cut costs. It’s to reimagine how you connect with your customers, optimize your marketing spend, and position your business for long-term growth.

Ready to rethink your catalog strategy? Let’s explore how you can close the chasm and unlock new opportunities for your business. Schedule a free call with me.