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Writing and Publishing, Part 44:
Becoming your own publisher:
Marketing:
Booksellers and Distributors:
There is not a great deal to say about booksellers because there
are really only two major traditional booksellers left. I'm sure
that I am not surprising anyone with that statement. To be sure,
Amazon.com seems to be another player operating strictly as a
web based outlet. there are also a large number of small booksellers
dotted here and there about the country. They seem to come and
go like popcorn, unable, for the most part, to compete with the
two giants.
In distributors the picture is slightly different. There seems to be a few major (national) distributors and wholesaler in the business. There may be a technical difference between wholesalers and distributors. If so, I don't know what it is. The only significant thing in my understanding is that most of these outfits are punitive in their dealings with small publishers, if they deign to notice us at all. There are also a number of smaller regional distributors with limited capability.
The largest of the national distributors is Ingram. At one time, Ingram simply refused to recognize small publishers at all. Then, our only choice, if we wanted to go through a distributor, was the smaller regional outfits. Later, for a while, Ingram set up a program which was ostensibly designed to help small publishers. From what I have read in the industry's journals, it did anything but help. Small publishers are being jerked around like puppets on strings by these big guys. It only requires a few months of reading the industry journals to know this.
Remember the traditional model of publishing? The publisher creates a book and offers it to the distributor. The distributor agrees to carry the book and offer it to the booksellers. The booksellers then stock the book and offer it to their customers, the readers. That is how it works for the big publishers with big budgets and famous or notorious authors.
The small publisher's problem is, to get our books into the stores of the two giants, we must go through an "approved" distributor. Regardless of their lip service and so called programs, B&N and Borders will not deal with small publishers. The Catch 22 is, even when a distributor will agree handle our books, they treat us like beggars at the gate.
Here are a few things which have been written about Ingram in the trade journals. They return books for credit and reorder the same title the next day. They return damaged books and demand credit. They return more books that they actually bought and demand credit.
What about the smaller distributors? I am not an expert, but I have had a bit of experience with one small distributor. I will cover this in detail when I review my experience with The Gaffer's Shorts. For now I will say, the small distributor's behavior toward me was less than decent; so much so that I have been unwilling to deal with a distributor since then.
This leaves us with few options for the distribution of our products through the traditional channels. The two giants will not talk to us and the distributors treat us dishonestly. However, there is hope. Recently, I have been investigation a concept developed by Amazon.com. They call it the advantage plan. It is designed specifically for small publishers. I believe it holds forth hope for the small guys.
Here is how the plan works. The small publisher applies for membership in the plan. Amazon then looks at the publisher and his products and decides if there is a fit. If so, Amazon sets up a system whereby they will warehouse a number of the publishers books. They will also, of course, list the books in their online catalog. the advantage is, the books do not have to be special ordered, as they would be at B&N. They can be shipped within 24 hours.
The amazing thing is, the financial arrangement is not particularly punitive. Amazon pays the publisher 45% of the retail price for every book they sell. Yes, to be sure, Amazon takes the booksellers share and the distributors share too. So what? If it works, the small publisher has only to ship books on demand to a single destination and get paid when they sell. that means I can spend my time in creative endeavors. I do not have to become a huckster to sell my books. Amazon handles everything which has to do with the customers including credit card processing.
I have just recently applied for membership in the plan. Thus, I have no knowledge of how well it works or if it works at all. I will have to wait and see. My intention is to let you know as soon as I know. I will do that even if this series has ended before I know.
Right now my take is positive. I see this as being in Amazon's best interest. I believe they are making a move to lock up the loyalty and support of the small publishing community. It's a power play to be sure, designed to shut out the bully boys. If it works, Amazon will have all of the very best creative efforts in the industry. The bullies will be left with whatever the big houses can produce. For the most part that will be the mass market twaddle and some text books. Amazon will have the thoughtful, intellectual products.
Here is the point as I see it. The small publishing community is the source of almost all of the really fine literary efforts in North America. In spite of that, they are getting a sharp stick in the eye from the bully boys of the industry. I have not heard about anyone who is not fed up with the thug like bully tactics of the big players. The time for change seems to have arrived. Perhaps a revolution is in the making. I dearly hope that Amazon brings it off and remains straight about it.
Here is the point. So long as we, the small publishers, continue to suck up to the likes of Ingram and B&N and all of the other big bullies in the industry, we will continue to get knocked around with the brown end of the stick. This situation must change. I personally would prefer to never make money rather than play that game. If Amazon does not come through, I still believe a change is imminent.
Someone with the power to act, will see the potential and bring the small publishing community into some kind of coalition. The potential for power and profit is simply too great to allow it to languish much longer. We must have our own separate channels of distribution. We cannot depend on these giants. They will continue to crap on use every chance they get. That is how they do business. It's a bullies game and I will not participate.
So far, all of the coalition efforts I have seen are amateur efforts set up by typical dot com hucksters. They are poorly conceived and sloppily executed. This seems true, even with some which are touted by the small publisher's associations. For now, I will put my hope in Amazon. At least they have the necessary clout. I will also continue to look for other options.
Now I can finish this essay with a message to small booksellers. This is something of a response to an industry journal article by a small bookseller that I noticed and read. The writer was trying to make a case for special discounts from small publishers for small booksellers. In essence, she wanted the same discount on one or two books that B&N gets on a carton of books from a large publisher. She told a sad story.
I respond, small booksellers come and go like popcorn. Why? Because you have nothing special to offer. You expect small publishers to give you books at cost. Why? Why not get honest? You will have nothing special unless you ally with the small publishers. Ingram doesn't have anything special for you. B&N will get the better deal. B&N won't deal with the small publishers honestly and neither will you. If you want to stay in business you must offer your customers something special and also allow us to make a profit.
Why do you think people will come into your store? Are your offerings different that B&N's offerings? They sure won't come for something they can get cheaper at B&N. They will come for something B&N doesn't have; books that B&N won't carry. Wake up! Get honest! You're a small shop. You're losing money. You are desperately hanging on. You are pretending it's someone else's fault. Try cooperation. You just cannot have all of the income. You must share it with me.
Read this series of essays. Take as honest a look at yourself as I am taking at myself. Then, let's talk. If you don't like this and you don't want to talk, that's okay. I will stay in business. If I never sell one book, I'm still going to be here. How about you?
Next time I will take a look at two industry organizations,
Publishes Marketing Association (PMA) and Small Publishers of
North America (SPAN).
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