Catalogers that sell survival and emergency products experienced a storm surge of orders in the wake of hurricanes Charley, Frances, Ivan, and Jeanne.
Orem, UT-based emergency supplies cataloger Emergency Essentials, which sells to consumers as well as to organizations such as the Federal Emergency Management Agency (FEMA), saw double the usual number of orders for its Meals Ready to Eat (MREs), says director of marketing, sales, and product development Scott Pedersen. These hermetically sealed pouches of pressure-cooked meals were snapped up by relief organizations aiding storm victims. “The Red Cross was able to hand out bags of nonperishable food in individual entrée amounts,” says Pedersen.
Emergency Essentials also sold twice as many of its 72-Hour Kits in August and early September than it usually does, Pedersen says. The kits range in price from $30-$300; the less expensive kits include food, drinking water, blankets, and flashlights with extra batteries whereas the pricier versions include products such as full-size sleeping bags, three-person tents, and water purifiers. The “72-hour” part of the product name refers to the average amount of time it takes relief organizations to reach individuals following a natural disaster.
Not all of the purchases were for those in the hurricane-ravaged areas, however. Consumers in other parts of the country bought supplies too. “People see what’s happening in Florida, and say, ‘Oh, I better prepare myself’,” Pedersen explains. “It’s a realistic reminder.”
Pedersen says increased sales of MREs and 72-hour kits will most likely continue into the fall. Following past disasters, including the 1994 North Ridge, CA, earthquake and more recently, 9/11, sales of emergency supplies remained high for up to six months after the disaster. “We will sell more 72-Hour Kits at Christmas,” says Pedersen. “Grandma, instead of buying clothes, may buy the kit. We see trends like that, people giving more preparedness gifts than usual.”
Power outages empower sales
For Modern Outpost Enterprises, a Victoria, BC-based cataloger of outdoor and camping gear, online sales of alternative energy supplies — such as portable solar-powered chargers — were 50% higher in August than in July, says owner/vice president of marketing Graham Morfitt. Sales of magnet-powered flashlights, priced at $14.99-$39.99, were double the norm for the season.
During August and early September, half of the company’s phone orders were from Florida, Morfitt says. Individuals in the midst of an emergency often feel more comfortable placing orders over the phone rather than via the Internet, even when they have electricity. “They want to make sure the product is in stock,” he says. “There’s probably a perception that in a sense of urgency, you want to talk to somebody live rather than let the order go off into the ether.”
In August and September, cataloger/retailer Northern Tool & Equipment Co. sold 5-10 times the number of generators it normally would that time of year, says vice president of marketing Terry Knoploh. “We also did a lot of business in tarps, chainsaws, transfer pumps, gloves, and gas caddies.”
The Burnsville, MN-based company, which manufactures 20%-25% of its own inventory under the brand name NorthStar, did not experience backorders on most of its products. The merchandise the marketer did have to put on backorder, such as some of its more popular generators, were usually delivered to customers within two weeks.
Northern Tool had decided in January to increase its inventory 30%-40% in response to the deluge of orders it received following Hurricane Isabelle in September 2003, Knoploh says. The cataloger also heeded reports from the National Hurricane Center that the 2004 hurricane season would likely be more intense than average.
Knoploh says sales from the hurricanes will account for one to two percentage points of the double-digit sales growth it expects by the end of this year. “Our catalog business has been extremely healthy this year,” he notes. “Obviously these storms provide a great opportunity for our business.”