Chark Blog - Independent bookselling in the UK

Friday, January 05, 2007

There is much gnashing of teeth in the trade press about the future of independent bookselling. Indeed, whenever I write anything about sales of books in the UK I get a lot of comments and correspondence attacking us (and other publishers) for undermining independent booksellers by granting too high discounts to chains, supermarkets and Amazon. The Bookseller magazine has carried many excellent articles on the subject but I think this angry and forthright letter published by them yesterday deserves to be widely debated and I've appended a few paragraphs from it. I don't agree with Mr Foster's conclusions (nor his views on the Booksellers Association) but I do think we need to address the issue more formally than through the Bookseller or this blog:

Independents are the key

I refer to Jonathan Spencer-Payne's recent letter (The Bookseller, 1st December) in which he forecast that there would be no independent bookshops in 20 years. While I agree with most of what he says, I do think he's being rather optimistic. I know of three which have closed relatively recently and two that are in difficulty in our region...

...The independents are the seedbeds of the business and the custodians of our literary culture. They subsidise the discounts given so generously by the publishers to the chains, supermarkets and internet booksellers. They are the de facto agents (unpaid) for Book Tokens, which are hidden by the chains (which prefer to sell their own vouchers), and they keep the wholesalers in business.

They are run in the main by sensible people who do not owe the banks hundreds of millions of dollars. They support a comatose and ineffectual trade organisation whose chief executive is never heard or seen promoting bookshops in the media.

When the independents go, the lot goes, and it'll be sooner than you think. The chains will never, ever be able to compete with the supermarkets and the internet. Happy New Year.

Philip Foster
Owner, The Tolsey Bookshop & Stationers
Tetbury, Glos GL8 8JG

1/5/2007 10:38:32 AM (GMT Standard Time, UTC+00:00)

I have been both a chain bookseller and an independent, over the years, and I confess that at times I, too, have been critical of the Booksellers Association.

However, I don't think Mr Foster is right to direct his anxiety at the BA- they are there for many reasons but none of those is to support individual businesses large or small, individually or collectively. In fact I am happy to say that I think Tim Godfray does a very good job and he is certainly neither comatose nor invisible. He is actually one person who will return a message very quickly and he is expert in the arts of civility and diplomacy (which I lack) and has supported many sensible initiatives.

I suggest a more fruitful line is to try to eradicate those extra costs which the supply chain carries for independent booksellers. Despite the excellent work that was done in the KPMG propgramme of ten years ago, it fell short of achieving real savings for small independents and tended to concentrate on returns and EDI protocols which are of benefit to large operations.

I think it would be useful to mount a short sharp joint programme specifically to target these costs- and I'm sure that both BA and PA would like to see this done because it would benefit all members of both organisations.

Tim Coates

1/5/2007 11:49:54 AM (GMT Standard Time, UTC+00:00)

I have seldom heard an independent publisher suggest that the PA does not try to understand and fully represent *all* interests, yet increasingly I am hearing independent booksellers openly stating that the BA is not prepared to either understand or lobby for the independent bookshops.

Naturally, any prediction - especially on digital technology and Macmillan - will be mentioned here : Macmillan are at the forefront of the digital revolution in publishing

However, take the latest (Jan 4th) BA blog "authored" by Martyn Davies. "The Christmas battle for the consumer purse has been clearly won by the online retailers."

I, and many other indies get sick to the back teeth with the manner in which people within this trade are prepared to freely "sell" the internet trade, which is but a small percentage of the total booktrade. (Incidentally although non-store sales greatly aided Next last Christmas, I would suggest that it was the traditional mail order rather than internet trade which was the dominant factor)

One of the real winners in 2006 Christmas trade were those suppliers, be they terrestial bookshop or "mail order" catalogue, which offered an eclectic catholic selection of titles away from the mainstream trade. Many independent bookshops were the winners last Christmas, although the BA would not know of their existence because "we" want no part of an association which courts the likes of Tesco and is not prepared to go out on a limb and represent the independent voice.

I, for one, long for the day when the independent booktrade have a decent "umbrella" association which represents us, and only us, and not every merchandiser who thinks that they will market books and treats books as mere products, and whose sales knowledge only extends as far as price pointing to try and increase market share.

Clive Keeble

clive keeble

1/5/2007 11:59:58 AM (GMT Standard Time, UTC+00:00)

How can i find owner of this blog?

Peggy

1/5/2007 1:16:49 PM (GMT Standard Time, UTC+00:00)

Richard - I was going to suggest that you move Clive's comment from the previous post.

Curious that the bit that you miss out of Mr Foster's letter is the bit about the NBA.

Tim - I mean no disrespect, but the key words in your first sentence are surely: Over the years.

That was then and this is now - everything has change in the 10 years that we have owned our own shop and what we indies actually need is an organisation that will stand up for us - if that is not to be the BA then so be it.

I would have thought that the BA would be concerned, for example, that such a high profile new indie as Crockatt and Powell can see no benefit in joining them, nor people like Clive too, but apparently not.

I notice you make no comment about Book Tokens.

I know from experience that Tim Godfray can be both civil and helpful, unfortunately he now heads an organisation that has confused the issue of representing the art and practice of bookselling with the cheap thrill of selling books to proles.

Where is their comment on two tier publishing? If this last prediction from their blog, as featured here a couple of days ago,is anything to go by, it is none existent:

"Booksellers will increasingly sell old, used, new and digital side by side. Currency is only one aspect of selection and selection is what booksellers have always done best."

Apart from describing both Clive and Amazon's way of doing business, what does this gobbledygook actually mean? If the guy means price then why not say price. Currency?

Let's just see how much 'selection' plays a part in selling the next Harry Potter, shall we...

Jonathan Main

1/5/2007 3:25:35 PM (GMT Standard Time, UTC+00:00)

I left out the bit about the NBA for two reasons:

1. I couldn't find anyone at the Bookseller to grant me permission to quote the whole lot, so I thought I'd better take something out.
2. I chose that bit because ithe letter stood fine without it and mention of the NBA could lead to all sorts of unconstructive reminiscnences about things which will never return.

richard charkin

1/5/2007 3:59:22 PM (GMT Standard Time, UTC+00:00)

Re: point 2 "unconstructive reminiscences about things which will never return": a little like the Ashes methinks.

Mancunian Mick

1/5/2007 4:06:19 PM (GMT Standard Time, UTC+00:00)

But Richard, it was also a large part of the chap's complaint and one of the main points of his letter.

I have no wish to reminisce (as someone once said) but your defence when questioned about allowing deep discounting is always that 'it would be illeagal to do otherwise'.

Yet it was not always the case, and we wouldn't be having this conversation if the NBA still existed.(Another instance where the BA stood idly by).

Obvious I know, but it wasn't independent bookshops - the subject of this thread - who were queuing up to get rid of it, so isn't it a bit patronising to try and protect me from the danger of my being *unconstructive*.

Jonathan Main

1/5/2007 5:07:25 PM (GMT Standard Time, UTC+00:00)

Richard

I can quite understand why you moved my earlier comments from "Predictions" to this thread : I would have absolutely no objections.

Clive Keeble

PS. Not for a moment would I ever suggest that you enjoy making mischief, but I wonder if you were forewarned that one Anthony Haynes, a consultant and literary agent, has an Opinion Comment column "Shape Up or Ship Out" linked from today's homepage on TheBookseller.com

Thankfully Anthony Haynes directs his comments at Jonathan Spencer-Payne, and not the independent booktrade in general, or I might have said some very strong words : instead, I have just roared with laughter that somebody who is trying to sell their consultancy skills knows so little about the day to day runnings of this quirky industry.

Clive Keeble

1/5/2007 5:39:27 PM (GMT Standard Time, UTC+00:00)

Peggy, Not sure what you mean 'How can I find the owner of this blog?'I am the writer. It is hosted on a Macmillan server. The copyright in my meanerings are, I suppose, mine and other's words of wisdom are theirs - under copyright law. Not sure this helps.

Clive, not forewarned about Anthony Haynes - don't know him either.

Jonathan, Noyt sure I agree about the importance of the NBA. Independents are under similar threat in USA where there has never been an NBA and they have some protection from the Robinson Patman Act.

richard charkin

1/5/2007 5:59:27 PM (GMT Standard Time, UTC+00:00)

Richard, and the rest of Europe?

Jonathan Main

1/5/2007 6:53:53 PM (GMT Standard Time, UTC+00:00)

I am very old, as you commenter has observed, but I still think my point is worth consideration.

For example, I guess, that the total sales of Macmillan books to one average branch of Tesco is of the same order of magnitude to the sales to a typical independent bookshop. You can tell us whether that is realistic.

Yet Macmillan, perfectly sensibly, probably, prefers to give bigger discount, essentially because their costs are less dealing with that one, theoretical, average branch of Tesco

So I am suggesting that it is worth exploring in detail the ingredients that go to make up these two sales opportunities and see what can be learned. Where costs could be eliminated that do not affect the cash paid by customers, they must be worth exploring - and even a little investment to achieve them. Non?

Tim Coates

1/6/2007 7:56:57 AM (GMT Standard Time, UTC+00:00)

Jonathan, As our books are largely published in English I know more about teh English-speaking book trade than the continental Eurpean one (the UK's in Europe isn't it?).In all the markets I know, independent bookselling is struggling even though there are different commericial pressures, different idiotic publishers and different legislations. I'm pretty sure that independent booksellers also struggle in France and Germany where there is still retail price mainrenance. And those countries are suffering from the ame ridiculous tricks to get round RPM as we used to have in the UK. They've even gt a new one. I'm told that one major retailer has been known to employ people to 'damage' books so that they can then be discounted. Mein Gott!

richard charkin

1/6/2007 11:36:59 AM (GMT Standard Time, UTC+00:00)

Teh gr8 ting ab00t teh wrrld v p00blshng z ur nt sp3kt3d t sp3l stuuf rite.

n00b

1/6/2007 5:52:03 PM (GMT Standard Time, UTC+00:00)

Tim, I am not *very* old, but I am old, too. I'm sure you have a point and that your comparison between supermarket and indie shop is correct. The difference however would be in range of titles supplied and stocked, which, of course, would be another reason why it would be more advantageous for the publisher to deal with a supermarket.

Which probably goes some way to explain the frustrating and dismaying number of Picador titles that are forever reprinting - Eric Newby for instance, and Cormac McCarthy, to name but two such ridiculous omissions.

Richard- '(the UK's in Europe isn't it?)' the clue in my question was in my use of the word *rest*

I think most people will be suprised to hear that you don't know much about the continental european booktrade - perhaps someone else can enlighten us?

Jonathan Main

1/6/2007 9:49:42 PM (GMT Standard Time, UTC+00:00)

Jonathan

So that's why I'm suggesting if someone neutral (I would suggest an accountant) were to look in detail at the costs of handling a wide range of titles versus a limited one, we would learn something about the way those processes currently operate that might suggest different ways of working; (the book trade has done this often-- eg the introduction of electronic order placing, or even the development of one source wholesalers)

These different ways of working might make a supply model which works better for both independents and large and small publishers. Within the last 6 months Terry Reilly suggested the same in a piece in the Bookseller. He said that the introduction of POD, the internet and other developments of the past few years make a review of the supply chain timely. I'm adding to that that if a small part of the project concentrated particularly on independents, then some very useful progress could be made.

There are many other aspects to this (as Richard implied in his opening blog) and they merit review. But this route in is one that could be very fruitful, I believe. Why don't you ask Tim Godfray to consider it?

Tim Coates

1/7/2007 9:14:03 AM (GMT Standard Time, UTC+00:00)

Jonathan

Your assertion about Newby and McCarthy is baffling. That they reprint frequently is a good thing, isn't it? And what is the connection between that and the efficiencies or otherwise of dealing with supermarkets.

Richard

richard charkin

1/7/2007 10:48:29 AM (GMT Standard Time, UTC+00:00)

Tim raises an important factor, even more so since Bertram Books, of which Terry Reilly is CEO, in mid 2006 secured the Waterstone distribution contract.

I source stock (in part) from Bertram and find the above an "interesting" development : no complaints from Keeble on this issue !

In the UK pricing structures are too often manipulated by the larger publishers who have decided what nett price they wish to see for themselves and will often inflate cover price, only to make (inducement) promotional payments to ensure front of store placement, table placement, or "alleged" discounts from the chains, supermarkets or the likes of Tesco, or Amazon on-line. The discount is all a load of baloney, since the publishers have printed the books expecting the title to be marketed by the "big boys" at the "offer price".

Publishers appear to treat any sales for such titles, through the independents, as their "bunce". Not surprisingly the skilled independent bookshop owner has come to realise that such titles are not worth stocking. It is impossible to compete on price and why "shaft" you customer by making them pay full-cover.

Stock for both Waterstone and (very probably) your local independent bookshop comes from the same wholesale stock pile in Bertram Books, Norwich : the nett price to Waterstone, and the nett price to the independent bookshop, very often have a substantial differential. Sooner or later some publishers are going to ask themselves why are they subsidising Waterstone to the detriment of the independents.

IMVHO, the endangered terrestial species, are the bookchains(with their massive overheads), rather than the independents who by shrewd purchasing - even with the price differentials - can offer a discerning customer a more inviting front-of-shop selection.

Clive Keeble

1/7/2007 12:03:57 PM (GMT Standard Time, UTC+00:00)

Tim, I have very little argument with you, but what you suggest can only ever be a part of the solution, as Clive elucidates very well. If Tim Godfray has anything about him he will be reading this anyway, won't he?

Richard,if they were reprinted frequently that would be fine; Eric Newby died 20th Oct 2006, Love and War in the Apennines has been listed as reprinting since the year dot. You currently have 8 of his titles reprinting. Cormac McCarthy has the celebrated Road, out now, currently 6 of his books are reprinting and have been for the last month or more - so that's most of the backlist of two major writers unavailable at a time when there is the most interest in their work.
You want frustrating? (And I'm by no means suggesting that Macmillan are alone in this).

Clive, I was beginning to wonder if there was anywhere in the world that Richard could tell us wasn't a bookshop graveyard and why this prognosis was reserved for independents and not all terrestials. As ever your optimism is invigorating.

Jonathan Main

1/7/2007 1:26:57 PM (GMT Standard Time, UTC+00:00)

Jonathan

I'll pass your message to Picador and I am certain they'll respond direct to you.

You are a very selective reader ( I suppose we all are) but I'm not picking on independents. I raised the debate because independents continue to raise it. I actually think that Clive has a point about the chains and their overheads and the opportunity for independents to carve out a successful business niche.

Incidentally Clive, I don't think a very high proportion of Waterstone's stock comes from Bertrams. The vast majority is sourced direct from publishers.

Richard

richard charkin

1/7/2007 1:49:46 PM (GMT Standard Time, UTC+00:00)

Richard

Although much of Waterstone in-store stock would come direct from the publishers I believe that Bertram fulfill all Waterstone.com internet orders, on which some publishers are no doubt paying the same promotional payments as they are for front of store, table display, book of the month etc.

Clive Keeble

1/7/2007 1:59:13 PM (GMT Standard Time, UTC+00:00)

By way of a PS to the above posting, indie bookshops have lately become accustomed to receiving books from Bertram already pre-sticked for Waterstone. I'm not complaining because I like to know what is going on, and I can readily remove the sticker.

However, to see another side of the story, I would recommend reading of a letter which can be viewed via the homepage of TheBookseller.com, section Columnists ("Bloomsbury Pricing"). The letter is sent by Jill Holden, The Bookshop, Credition. Essential reading for all involved within the UK booktrade.

Clive Keeble

1/7/2007 2:51:59 PM (GMT Standard Time, UTC+00:00)

We do make things complicated:

Who publishes this book?
- Andre Deutsch
So I order the one copy from Mr Deutsch?
- No, from Carlton books
I send the order to Carlton?
- No it goes to Littlehampton Book Services
Shall I send it to Littlehampton?
- No you give it to Compass Independent Book Sales
And the returns?
- Don't set me off

And the customer gains no benefit from such complex procedures. There's too much mystery and it's jolly expensive to sustain. Supermarkets don't want it and don't want to pay for it, I'm pretty sure. So we do it for the benefit of?

It must be worth exploring all this. I have a vested interest because these same kinds of problems and other similar ones have silted up supply to the public library service. Richard so correctly and eloquently explains that public libraries have complicated their lives so much that they hardly buy any books at all any longer- and have gone off the publishers' radar.

Tim Coates

1/8/2007 8:34:29 AM (GMT Standard Time, UTC+00:00)

Clive, A small correction. I have no idea on what terms Bertrams supply waterstone.com but I do know that our terms to Bertrams are indpendent of where the books go and thus carry no special terms for any of Bertrams' customers. Indeed it would be totally impracticable so to do.

richard charkin

1/8/2007 9:51:28 AM (GMT Standard Time, UTC+00:00)

Richard, looking at Waterstone.com I see that their "Book of the Day" is "Ladies of Grace Adieu" offered at 50% off.

Presumably Bloomsbury - the publishers - are offering Waterstone a promotional payment to ensure this position on the Waterstone website. I would not expect you to answer my next question "Are Bloomsbury offering special terms on this title when the stock goes into Bertram, because for indie bookshops this title only carries normal trade discount" Those who read Jill Holden's letter to The Bookseller will be aware that Bloomsbury 21 promo titles are effectively being remaindered into Waterstone with their £2.99 Waterstone stickers : same stock from the warehouse in Bertram which supplies the indie and little w.

We live in interesting times ; lest my attitude should be misunderstood I have not the slightest complaints with Bertram who are for the most part doing a darned good job for an industry which is bent on self-destruction.

Clive Keeble

1/11/2007 4:43:01 PM (GMT Standard Time, UTC+00:00)

I have a fascinating (I think!) Q&A at my US blog, the Publishing Contrarian. I interviewed a "mystery" entrepreneur who sold his 25-year-old, privately-held company a few years ago to a huge, publicly traded company. The mystery entrepreneur offers advice to independent bookstores. He feels they have to ask ONE question, repeatedly, to find out how to survive. Is he right? He could be...
Lynne AKA The Wicked Witch of Publishing

Lynne W. Scanlon

1/11/2007 4:56:28 PM (GMT Standard Time, UTC+00:00)

Great stuff. I'll link it tomorrow.

richard charkin

1/30/2007 5:20:36 PM (GMT Standard Time, UTC+00:00)

When's the next blog? I've seen this kind of thing before. New ventures start off with a fanfare, then fizzle out. Discipline, Mr C. Discipline.

Walter Ellis

1/30/2007 5:24:10 PM (GMT Standard Time, UTC+00:00)

Hmmm. Something odd here. When I call up your site (via a bookmark), I get the original, first blog, and nothing else. Yet when I posted my stricture above, up came a set of more recent commentaries. What's going on?

Anyway, my apologies for suggesting that you were less than determined in your pursuit of truth.

Walter Ellis

2/13/2007 8:09:15 AM (GMT Standard Time, UTC+00:00)

Walter

Not sure what you mean. I blog every day and if that ain't discipline I don't know what is!

richard charkin

Welcome

This is it. I am officially entering the blogosphere. This is not a Macmillan blog, but Macmillan will certainly feature heavily. The idea is that when we need to share anything from company strategy through news, to talk about new ideas or to help us learn from our successes and our mistakes, we can all blog about it here. This means no more email newsletters from me. Instead, you can read (and blog) all about it here. And don't forget to bookmark this page and to let colleagues know all about it.

The broader the audience the more effective this blog becomes.

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