If you enjoy reading and you like your reading matter on paper, not in little lights on a screen, you need to know what is happening to the people who bring novels and nonfiction to you. The following post, originally published in the October 2009 issue of Southwest Signature, is by Bill Fessler, president of the Arizona Book Publishing Association. Bill is general manager of American Traveler Press. ATP has published more than 250 books, primarily focused on the tourism industry, among them souvenir cookbooks, outdoor and nature guides, and general information about local subjects. Bill enjoys traveling, and his business fits in perfectly with this love.
The latest (big) news in the book industry is that Wal-Mart has begun selling bestselling, hardcover books for $10 on their website. Amazon.com decided to match this price, and now Target seems to be joining the fray. Things are getting heated, and the prices have dropped to $9. As a consumer, this sounds awesome; but as a publisher, this is awful. And yes, this includes those of us whose books are not on the bestseller list.
If a book by Sarah Palin, Barbara Kingsolver, or another big name can be purchased for $10, how are the rest of us going to convince the customer that our $19.95 book is worth the extra money? The answer: we can’t compete at this price. If your book is $19.95, the consumer will simply pass over your book and look for a $9.95 competitor. If your book is $9.95, that means you are selling it to the bookstore for $6 or less (probably in the $3 range). Very few of us can make a profit selling books at this price point.
“If readers come to believe that the value of a new book is $10, publishing as we know it is over,” David Gernert, Grisham’s agent, told the New York Times. “If you can buy Stephen King’s new novel or John Grisham’s Ford County for $10, why would you buy a brilliant first novel for $25? I think we underestimate the effect to which extremely discounted bestsellers take the consumer’s attention away from emerging writers.”
“But Bill,” you ask, “what can I do to combat this?”
First of all, don’t buy these $10 books; if you really want to read them or buy them as presents, pay a reasonable price (I suggest no less than 20% off of the retail price). Second, buy them at a physical store, not online; pricing like this is designed to direct consumers to online purchasing, which ultimately leads to closed stores. Third, strongly consider buying them at an independent bookstore; Barnes & Noble and Borders have a better chance of surviving a lengthy online war between Wal-Mart, Amazon.com, and Target, but the little guys need customers in their store every day, buying books, in order to survive.
Last, start discussing this bad decision with your friends, coworkers, and neighbors; we need to break the cycle of Zombie-consumerism (basing our purchase decisions on price more than any other factor). Just as McDonalds does not make the best hamburger, Simon & Schuster does not publish the best book. But if you look at their revenue stream, one could argue they do.
There are better books out there—we know that there are better books among our publishers right here in ABPA. But until we begin to spread the word and change the buying habits of those around us, the loser will be the consumer. Don’t be a Zombie!
I don’t get it. What’s wrong with a $6 profit (or even a $3) profit on every book. Wouldn’t that mean if you sold $1,000 books you’d get $6,000? Or if you sold them on Craig’s list or some other DIY outlet, you’d get the whole $10, right? $10,000 on 1,000 books? I wouldn’t cry about that.
How do the used books figure into this, do you suppose? I’ve never had the budget to buy new books, especially not in hardcover because I can’t physically deal with the heavier books, so I rarely frequent the book shops, avoid the discounting retail stores and don’t buy from the online retailers unless I absolutely positively have to. I do give the independents my business if I’m buying gifts and I have the cash, but it’s not often.