A Run on Gas Masks

AMERICANS WORRIED ABOUT the prospect of chemical, biological and nuclear attacks are stocking up on survival gear.

That means business for U.S. Cavalry, a multi-channel marketer of military supplies.

Sales at the company’s Web site (www.uscav.com) almost doubled in the weeks after the Sept. 11 terrorist attacks, rising from 18% of total company sales to 35% during that period. And total sales doubled during that period. Last year, overall sales hit the $45 million mark.

The top sellers? Gas masks and dried foods, sales of which hit levels not seen since the Gulf War, according to CEO Randy Acton.

Sales came from both civilians and military personnel, including many reservists called up for duty.

Unique visitors to the Web site went from 400,000 before Sept. 11 to 500,000. And incoming phone call volume doubled for both catalog and Web-based orders.

According to Acton, customers like being able to search for products and place orders instantly when a war is under way.

Of course, all this reinforces the firm’s decision to place more emphasis on Web marketing and to scale back the number of its catalog mailings from four to two per year.

But there are other reasons. For one thing, online shoppers spend an average of $100 per order compared with $79 for catalog buyers. In addition, Web marketing costs the firm 70% less than paper catalogs.

But catalog cuts may have come anyway because the firm has had to deal with erosion of its customer base caused by military base closings and other cutbacks in the armed forces, as well as rising postage and paper costs, Acton said.

The Fort Knox, KY-based firm mails out 1 million catalogs a year, averaging a 2.5% response, at a cost of $900,000. U.S. Cavalry has a database of 2 million names, according to Acton.

A Wide Range

The company markets more than 7,000 items online and about 2,500 through its catalog. Products range from military trousers to hostage rescue videos. The company also sells gas masks, sleeping bags and toy paintball guns. “And we’re adding new products every day,” noted Acton.

About 60% of U.S. Cavalry’s business comes from individuals stationed at military bases around the world, 25% from purchasing agents at the various military branches and the remainder from civilians.

U.S. Cavalry has influenced government policy: during the Gulf War in 1990 and 1991, soldiers seeking to buy uniforms from the catalog requested lighter fabric better suited to a desert climate than what Uncle Sam was offering. The Army eventually followed the cataloger’s lead in its uniform design.