Bookstore Distribution—Self Publishing Dream come true or The Emperor’s New Clothes?
Bookstore Distribution—Self Publishing Dream come true or The Emperor’s New Clothes? Remember the childhood story of the Emperor who paraded around in his underwear but the royal subjects were too afraid to say anything until one day a small child blurted out “the emperor has no clothes.” Well I am a long way from being a small child but I am going to blurt out for all to hear, “Bookstore distribution is the publishing’s emperor who has no clothes.”
There is no self-publisher alive who doesn’t dream of a mailbox full of bookstore orders. This dream is probably only slightly less popular then the “wait until I get on Oprah” dream. Some time back, I was quite vocal in touting a new book distributor, Biblio. As a subsidiary of the well-established National Book Network, they represented hope for the small publisher. Also, a while back, a publisher could open an account with Ingram, a major book wholesaler, which gave them access to a variety of book retailers. That changed when Ingram changed the rules forcing small publishers to either come to them through a book distributor or use their then-struggling, POD printer, Lightning Print. Very few legitimate book distributors wanted to deal with small publishers. There was an array of “distributors” whose main goal was to make money from upfront fees and storage, not sales to bookstores. Then, along came Biblio. Biblio truly wanted to sell books to bookstores and help the small publisher. They charged a very small setup fee and their storage charges were reasonable. The word spread like hotcakes and their list of publishers grew. On the surface, it looked like a small press dream had come true. Unfortunately this dream turned into a nightmare for not only many small publishers but for Biblio as well.
One of my oldest friends, Bob Johnson, the co-author of the Publishing Basics book, had been supporting himself as a self-publisher for almost 30 years. Publishing mostly local history, Bob never had a real need for a traditional book distributor or even a wholesaler. Most of the books he sold were on a one on one basis. Bulk orders were almost always to local stores where sales could be monitored daily. Many of his books were sponsored by a single advertiser. He was a success. In short, he was a poster boy for self-publishing—a real entrepreneur.
Then came a series of books which were centered on the first book in the Bible, Genesis, and its relationship to Greek mythology and the Parthenon. Without going into too much detail, these books had very broad appeal and were perfect candidates for a “traditional” bookstore distributor. Bob goes into detail about his experiences with this distributor in another article in this newsletter but let me sum it up by saying that, with the help of this distributor, Bob was able to reprint 2 times and earned over $30,000. That’s the good news. To make a long story short, over a year later the distributor wrote Bob a letter looking for $34,000 back. There was a fat chance of that happening. (Click here to read the details of Bob’s distribution saga)
It was not long after this that Biblio basically closed their doors. It doesn’t take much imagination to figure out why. To make matters worse, they didn’t just close their doors but they shipped all their books off to another distributor. News of how this is working out will be the subject of a future article, although all you need to do is join the Yahoo Self Publishing listserv and read some of the postings. It’s not pretty. If you are one of those publishers, I would love to hear from you with your experiences, good or bad.
Now let’s go back to my first paragraph where I was singing the praises of Biblio. What went wrong? I consider myself fairly intelligent and I certainly consider myself “above average” in my ability to spot scams, and once I find them, I am certainly not bashful in writing about them. Their basic structure was sound. There were low setup fees so you knew that they would need to sell books to make money. They seemed to have plenty of commissioned salespeople with the experience to sell books. A hungry salesperson is good for everyone. Their storage fees were very reasonable. I believe they were charging 1½ cents per month per book. Not bad. Again, this meant that they needed to sell books to make money. The third and perhaps the most important thing for the small publisher is they worked on a straight 60% discount. No hocus pocus or fuzzy math . . . a ten dollar book netted the author four dollars, period. So with all this going for them, what went wrong?
Their demise is the bane of the entire book industry . . . RETURNS . . . and lots of them. Everyone has read about the evils of returns at one point or another. I won’t belabor the point in this article. The whole return issue warrants an article of its own. Talk about a scam? Take the Bob Johnson experience and multiply it by 100, 200, or 300 other small publishers. It doesn’t take much imagination to see why Biblio is no more.
With no more Biblio, I thought it was time for me to re-visit the whole distribution game. I was helping almost a thousand authors per year become publishers. Everyone thinks they want distribution but, at the end of the day, all they really want is to be listed with a wholesaler that can access retailers.
I used to be high on Baker & Taylor but, according to everything I read, they are a giant can of worms, not made for the weak of heart. While they have been around for years and will deal with small publishers, for a price, most of what I read is bad, all the way from customer service to payment. This left all roads pointing back to Ingram.
In my infinite wisdom, I thought that maybe I could work something out where I could become a limited distributor for the sole purpose of having books listed with Ingram. I already had POD access to Ingram through my Thor program but that was, at best, a very basic, entry level program that did not work for most of my authors. I felt that they needed the real thing. Obviously, I wanted to avoid the Biblio mistake of paying out, before books were returned. It seemed like the answer would be easy. No money would be paid to the author until after the last date of return had passed. If that date was 6 months, it was 6 months. If it was a year, it was a year. When I contacted Ingram, they were more than willing to set me up as a distributor. I had more than enough titles and those titles would surpass any minimums Ingram would impose. Luckily, I bounced my payment idea off the Ingram rep. I can still hear him laughing.
If I wanted to hold money until after the last day that books could be returned, I would never pay my authors a cent. Why? Books are returnable FOREVER. What kind of crazy system is that? Well it is what it is . . . Bookstores pay their bills to Ingram with returns. Ingram pays their distributors with returns. In short, if any real money changes hands, it is not by design. It’s a giant scam. No wonder the big publishers are in such sad shape. This system is total nonsense. As a small publisher, let me tell you this: You do not need bookstore sales under these conditions. You can’t afford it. The Bookstore Distribution Emperor truly has no clothes. Stop wasting your time and energy looking for someone who can waste your money for you. You are more than qualified to do that on your own. One book . . . One twenty dollar bill . . . Two books . . . two twenty dollar bills. That’s how the self-publisher becomes successful.
Last 5 posts by Ron Pramschufer
- ATTN: Vets…Don’t leave it to the historians. Have a story to pass on? - July 20th, 2010
- How did Book Expo America work out this year? - June 30th, 2010
- How did that Publishing Basics Seminar, in New York, work out for you? - June 30th, 2010
- Do you have any plans for Book Expo America this year? - March 19th, 2010
- Self-Publishing and the New Millennium plus 10 - January 14th, 2010
July 8th, 2008 at 4:23 pm
Man, is Ron preaching to my choir with this subject! I’ve said for years that the last place a self-published author wants to see his or her book is in a national chain bookstore (unless it’s on the special order shelf). I swear that a small publisher could ship 10,000 copies to a distributor and six months later get 11,000 back.
I’ve sold as many as 20,000 copies in an order, but these books didn’t go to a distributor, and I didn’t get a single copy back. I’ve sold a total of over 75,000 copies, none through a book store.
The only distributor a self-published author should work with is one that specializes in libraries.
July 8th, 2008 at 4:31 pm
My book sales keep creeping up year over year . . . but my bookstore sales, aside from Barnes & Noble, are disappearing rapidly. Baker & Taylor just returned all the books they had in stock — that and their new returns policy makes me wonder whether they expect to stay in business.
July 8th, 2008 at 5:37 pm
Ron:
I have enjoyed reading your publishing basics for some time now and have always found them to be very enlightening.
I have been selling my books Emy Moon & Lucy Killgrew on a “grass roots” basis to various historical organizations.
Coming from a video tape distribution background, I knew the theory of rotations and returns that allowed anyone selling tapes to return them to the distributor if they did not sell. The term, however, was usually 6 months from time of sale.
No company will go out and purchase a few hundred or even a few thousand books from a small publisher without a back door.
I have found during the last 4-5 years that there is always someone out there who is ready to “cash in” on our work.
July 8th, 2008 at 6:24 pm
So, what do you recommend? Baker and Taylor or Ingram, who then order from you. Or do you advise trying to stir up demand so would-be purchasers can contact you directly? Suppose your book catches on? How do you fill the orders? Wouldn’t you suggest a wholesaler at the very least?
JJ
I see no problem with B&T other then the nasty press they get all the time in the various chat groups. Initially it is actually just as easy to handle bookstore sales through my Thor POD program, which is basically LSI at a discount. Use Baker & Taylor for places who won’t buy from you directly or buy non-returnable POD. Just watch how many books you sell through Baker & Taylor. Think of it as going to the racetrack with the exception that there is no finish line so you rarely get the chance to cash a ticket.
Ron
July 8th, 2008 at 6:30 pm
Your article is good, and I agree with your conclusion; but you are more than a little late if you have never thoroughly explained the ugly reality of returns to your readers before. You state, “Everyone has read about the evils of returns at one point or another. I won’t belabor the point in this article. The whole return issue warrants an article of its own,” but obviously Bob Johnson had not read enough about the evils of returns to avoid a major problem. There is no question that Biblio failed to do their job properly, but I would argue that Bob Johnson did not do his job properly either (otherwise he would have seen the massive returns coming before they even went to Barnes & Noble. Publishing Basics is a great resource, but the topic of returns in the book trade is one of those publishing basics that you should make sure you are covering it thoroughly.
Bob,
Nobody has ever accused me of keeping anything about the publishing process a secret. The issue of returns is no exception. Returns of 30%… even 50% are returns. 100% borders on criminal.
Ron
July 8th, 2008 at 8:54 pm
Yet, another informative, empowering and insightful article!
BTW, I am still waiting for payments from Baker & Taylor.
I appreciate the comment from Rick Lawler. I too shall investigate the library market more.
Thank you for helping this ‘newbie’ understand that truly the rules have changed, the paradigm has shifted, so forth and so on in regards to publishing and distribution.
We, the small publishers and authors have the power. (Although, I still want the status of ‘New York Times Bestseller’ just to say I did it!)
Yet, that too calls for a redefinition of success (for me) and a questioning of why I should seek that outside of ‘empowered me.’
Ron, honestly, I learn soooo much from reading you and the other contributors to this site. Thank you for your thoroughness and detail.
Adrienne Zurub
Speaker/Comedian/RN
Author, ‘Notes From the Mothership The Naked Invisibles’
http://chasewunderlickpublishers.com.cn
July 9th, 2008 at 2:19 am
I sell to Ingram through BCH Distributors, they do a great job, pay me, and returns are minimal. I sell lots of books this way. I suppose one day I could see a Semi Truck pull up with lots of returns…but I’m not losing sleep.
Bryan
July 9th, 2008 at 2:22 am
Also wanted to mention that I use B&T and they sell lots of books for me…again, no problem. They are a bit quirky but they DO pay, albeit sometimes late.
July 9th, 2008 at 2:17 pm
Very interesting. So far I haven’t run into the returns nightmare, and my association with LSI and Ingram have thus far gone well. But obviously, it’s good to be prepared and learn what you can if things change. Thanks so much for this article.
July 10th, 2008 at 8:20 am
Ron,
Interesting recap. It supports two things we have been doing for several years now.
(1) We don’t spend any time at all thinking about, or trying to sell to, bookstores. They do buy our books but, generally, as special orders. Libraries buy more.
(2) We don’t consider LSI and other printing options as an either/or decision. We may print a title with LSI and with another printer. This makes the title available through Ingram (for library sales, bookstore special orders, and Amazon) and allows us to fulfill orders from our inventory (at lower unit cost) for other outlets (direct-to-consumer, museums, back-of-the-room, etc.).
Number 2 above, of course, may not work well for titles that are heavily illustrated (although LSI’s recent software upgrades have greatly improved greyscale printing — to the point I’m not sure I’d worry much about it unless those illustrations are the primary reason for the book) or for those with four-color interiors.
Oh, and we don’t accept returns no matter how the books were purchased (direct from us or through Ingram/LSI). I’ll lost a sale rather than play that lunatic game.
Thanks again for the thoughtful article.
July 11th, 2008 at 10:19 am
Hi Ron: Just read your article and wish I’d seen it six months ago. Yes, I was warned about distributors, but “It won’t happen to me” was my thought. I chose Atlas because the Sales Rep I talked to was sooooo nice! Sheesh! She also told me my books would go into stores and libraries all over the country, that they had sales reps just foaming at the mouth to carry my books into stores. They were so nice: I love nice. I’ve won numerous awards for the book, some at BEA, and had to call and beg for them to put it on Amazon. Then they even got it wrong.
BUT…. They have had my books for over six months, and the only place that it is now on sale is B&N, and ONLY because I went into my local B&N and asked them to carry it. Nice emails and voice mails go unanswered, hateful emails and voice mails go unanswered, and if I do get an email from them, it’s always “We’re working on it.” I’m ready to strangle someone, but can’t reach them to do it.
After reading your article, today I will send my letter of “I QUIT.” I also must wait “according to the fine print in my contract that I did not read” “283 days for my money” because of “Returns.”
Okay, how do I change my Amazon page?
Dodie
July 11th, 2008 at 11:54 am
There seems to be a opportunity here, on the retail side. I’ve read where the ability to return makes retailers weak in product discernment. What if some of those independents bought on a nonreturnable basis? Or what if books where retailed in related stores? Say cookbooks in restaurants, travel books in luggage stores, novels in coffeehouses.
Amazon has gone a long way in breaking up the wickedness. There is still the retail level to solve.
John
July 11th, 2008 at 12:11 pm
Interesting article …
As a REALLY small self-publisher (One title and growing) I made a conscious effort from the beginning to avoid all these mentioned headaches and distribute solely from my website and select local Indie bookstores. For me, the pros far out way the cons. I avoid the outrageous returns (A sale from my web site is a final sale), and I get to pocket most of the coinage.
Of course, I have limited exposure, but I also get the satisfaction of that ‘entrepreneur’ spirit. Sounds corny, but I worked hard on my business; Why should I pay the ‘Big Guys’ to help me?
Harry Smith
Like A Duck Publishing
July 11th, 2008 at 1:10 pm
great article. The truth is the only way a writer is truly going to see his/her books is direct. WEb, Amazon or back of house. Get it into your head, the writing business isn’t just writing, it’s total self-marketing, which means, self-publishing BECAUSE without a HUGE promotional budget to make the author a household name, the % the traditional publisher takes doesn’t come close to the net you can make selling the books yourself.
I’ve done all ot it. Self, custom and traditional.
Writing is not for the weak of heart.
SLM
July 12th, 2008 at 7:51 pm
I would like to comment on how I switched the way I list books on Amazon and how my Amazon payment went from $8.98 a book to over $18 a book.
Also would like to comment about bad relations with Baker & Taylor.
But I would like to comment without being identified by name.
July 14th, 2008 at 11:53 am
Wow. Ron, you have explained every sense I’ve had about bookstore distribution!
Luckily my corporate customers do not buy in bookstores, but I was considering it for
my What You Say Is What You Get(R) books and audios on Appreciation in Marriage and Parenting. Thanks for saving me tons of time and money! And upsets!
Question for Reply #15, Rob: Did you shift from Amazon as distributor to their $40/mo. program?
And how do you get your buyers’ email addresses now that AMazon controls every communication thru their site?
Thanks much,
Dr. Linne Bourget
July 14th, 2008 at 5:20 pm
Awesome article. I was already leaning away from the industry establishment and put up my own website, MySpace and YouTube pages to hock my book direct. I’m going to stay on this path and avoid the nightmares you’ve described here. Besides, I’m sure when Oprah calls, I can handle the distribution details then.
July 22nd, 2008 at 12:06 pm
A while back, Ron, you put out information about getting hardback children’s books in color without going overseas.
I’m needing to find printing sources that don’t charge more to print than we can sell the books for.
Vivian
Hi,
Check out http://www.rjcom.com/childrens/.
Thanks
Ron
July 31st, 2008 at 9:52 am
Returns. When I give talks on independent publishing, everyone wants to know how to get into the chains, because I have been there–and I have lived the return nightmare and it was terrible, costly, and heartbreaking and it took a full year to be finally over with after changing to no return. But everyone thinks the chains, who require open returns, are the holy grail and that, if they get there, they’ve become successful. Compounding the problems of returns outlined here, the returned books frequently come back too scuffed or dented to ever be sold again as “new.” Additionally, the chains do not move inventory to and from their stores. A store that sells orders more from BT rather than getting inventory from another store while the other store sends back returns. Finally, once you are in the chain stores, your book has about a half-inch of spine space to call out to potential buyers. What most people don’t realize is that those books that are face out aren’t there because some nice, book-loving salesperson thought they were great. That’s paid real estate. I once paid $3,000 for my title to be face out in nationwide stores for a month, with sales that increased for that month but returned to normal after my promotion was over. So I tell people, always, be careful what you wish for.
That $20 bill for the book is the way to go. Now I sell all my books directly to my customers and I am happier and better off profit-wise. The strength of the successful independent publisher has always been his/her niche market.
July 31st, 2008 at 3:03 pm
My concerns about publishing through ‘the industry’ are confirmed through your article. The responses from your other readers is another source of validation. Thanks to all of you! I will proceed on the path I trust… my own.
September 17th, 2008 at 12:25 pm
Ron,
It appears that B&T has undergone some sort of restructuring affecting the department handling small press (i.e., inventory management to B&T warehouses) at the beginning of September. Since then, I have been unable to identify, contact or otherwise speak with the person now handling my account (and, of course, the warehouse that will be supplying books to my upcoming book signings is at zero). Have you heard anything about this from other independent publishers?
Thanks,
Rebecca Hale
Green Vase Publishing
October 3rd, 2008 at 10:40 am
I would LOVE to use B&T — but after about 20 books shipped, tracked by UPS and delivered, and then their claim they never got them and refusal to pay — I just couldn’t use them any more.
I think the right hand does not know what the left foot is doing. Something big-time is wrong with that company. It may be that the antique distribution systems are just dying, and we’re wading through the bacterial toxins.
So it’s time for more end-runs around the gatekeepers.
Hit http://donnabarr.blogspot.com/2008/09/dumping-distributors-naked-peacock.html to see an EXTREMELY simplified diagram for using POD and a “distributor” site that does no more than take and forward orders to — for example — Lulu, and takes a small fee for doing it.
This is very basic, but it’s a job opportunity sitting there — small at first, but it can grow. I know somebody out there has the site-building chops to do this.
Contacting the POD authors on this site would build a retailer and customer base.
October 3rd, 2008 at 1:55 pm
I’m so happy I read this article today. I recently published my children’s picture in August 2008. I’m setting up many Author visits at libraries in Florida. I also sent my book to the Barnes & Nobles small press dept. They told me I can’t do Author
visits until I get accepted by them. I will find out in five weeks.
My home is my current distributor. Will B&N ask me to disribute with someone else when I’m accepted. Your article was a real eye opener. What would you advise on the children’s picture book?
Maura Moynihan (Murphy Bear’s Tennis Lesson)
November 17th, 2008 at 2:52 pm
Dodie,
Atlas Books, also known by Bookmasters, Inc. has been a nightmare for me too. From start to finish they suck in every way. This article is discouraging because over the last week I have been saying to myself that after the winter sells rush ends that I am closing my account with Atlas and finding a new distributor, but it seems that is not the way to go! What’s a small publisher to do?!! I have 7 small children and am just to fulfill my dream to work from home by publishing my books and those of my clients, but I don’t have the time to dedicate to pushing sales myself… sigh.
Hey Dodie, was your sales rep Carol Bowersock. That is mine and man is she NICE! You are right about that, laugh, problem is her niceness doesn’t transcend into the rest of the company. They are completely, and I do mean COMPLETELY INCOMPITENT.!!!
Laneen Haniah
http://www.victoriouslyfree.org
January 16th, 2009 at 10:52 am
Now that was a great article. I’ve never heard returns described so well or so bleakly. I am one of the many of those gored by B&T and haven’t dealt with them for ten years. Dirty me once… Kudos on telling it like it is. I sell our titles only on a nonreturnable basis now.