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Beltway Books: What Embargo?

September 18, 2007

images.jpgReleased yesterday, ex-Fed chairman Alan Greenspan's The Age of Turbulence: Adventures in a New World (Penguin Press, $35.00) is making headlines for its scathing indictment of the Bush administration's fiscal irresponsibility. But almost as juicy–at least for the few of us with a taste for very minor book industry scandals–is when, precisely, those headlines were printed. Penguin supplied advance copies with the stipulation that stories be withheld until the book's official release on Monday, September 17. The Wall Street Journal sidestepped that little rule, though, by purchasing a copy at an eager New York-area retailer and posting an account of Greenspan's much-anticipated comments on its Web site Friday night. Once the embargo was broken, other news outlets were free to go to press with their own stories, albeit with the knowledge they'd been scooped.

Last year, the New York Times had the distinction of beating Bob Woodward to the punch with a premature feature on his State of Denial, courtesy of a gun-jumping bookseller. In fact, embargo breaking is something of a NYT specialty: They did the same thing with Woodward's previous book. And with the Carly Fiorina memoir–despite a deal between Newsweek and Penguin for exclusive rights to the story. (And then the NYT did the unforgivable, publishing Harry Potter spoilers.)

Although Penguin says it forces any retailers it finds selling books early to remove them from shelves, procuring high-profile books before release date doesn't seem too difficult. No word on whether the nameless booksellers sell embargoed material out of ignorance or desperation for sales of any kind.

Greenspan's 544-page memoir/economic commentary is currently Amazon.com's top seller.

+Greenspan on 60 Minutes
+Greenspan at BEA
+NYT review

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Borders Embraces Martial Art of Exclusive Distribution

July 13, 2007

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Barnes & Noble made a business-savvy move when it began publishing those cheap, bland-looking editions of public domain classics and piling them high on prominent tables in 2003. No, no, they weren't trying to steal sales from other publishers––rather, the line "celebrates the genius of the human heart."

Borders announced its retaliation in this slo-mo battle of the titans this week: the publication of The Hammer, a collection of Sports Illustrated columns celebrating the life and times of Barry-Bonds-threatened grand slammer Hank Aaron. The Hammer is the second in the chain's plan to publish exclusive, proprietary books. Last month, the program's first book, screenwriter Nick Santora's Slip and Fall, became a Wall Street Journal bestseller despite being sold exclusively through Borders-owned outlets. And neo-soul fans rejoice: among upcoming titles is a John Legend tour book.

All this is a bit of Starbucks-inspired genius, of course, exempting Borders from distribution complexities and co-op space gouging and giving them the Oprahesque ability to select titles that automatically get gargantuan marketing support. Somewhere, Barnes & Noble lies in wait, plotting its entrance into the corporate tastemaking arena, and the fate of readers across the nation hangs in the balance.

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Don't Print Off More Than You Can Sell: What to Consider When Deciding How Many Books to Print

May 10, 2007

Book publishing is a lot of things, but an exact science it is not. In fact, it’s an educated guess at best. So what do you do when you finally get down to deciding the hard numbers of how many books you need for an initial print run? First day sales for Bill Clinton’s My Life exceeded 400,000, prompting the publisher to print 725,000 more copies beyond the initial 1.5 million printed. So does that mean that all books on famous people will have instant success? Hardly. According to the Wall Street Journal, in 2005, the book Brad & Jen: The Rise and Fall of Hollywood’s Golden Couple, shockingly or not, sold a meager 4,000 copies. There is no magic answer, but there are factors to take in account when making your decision.

Direct sales: You don’t have to be famous to draw a crowd. If you’re a public speaker with a lot of engagements, a decent following, and a large potential for back-of-room sales, assume that you can inspire at least half of those people to buy a copy of the book from you. Popular websites that already generate a fair amount of traffic can act as advertising space and give your existing audience instant access to the book. Also, never discount the number of people who you know directly (i.e., clients, colleagues, family, and friends).

Price per unit: There is one aspect of exact science in publishing that you can hold on to. As print quantities increase, price per unit decreases. It’s a good idea at the beginning of the project to get three print quotes, so that you can see what numbers work best for the price you are paying.

Timeline for reprints: Make sure to factor in time for reprints to reprint. For U.S. printers, the time frame is about 8-12 weeks; for overseas printing, you’re looking at 3-4 months. If demand is high enough that you need to reprint, then you definitely don’t want to run out and miss sales.

Marketing: Books unfortunately do not sell themselves, but when authors actively market their books, it creates demand. When there is increased demand, you want to have the supply to meet it.

Co-ops: Co-op is the intensely coveted space in bookstores—endcap displays, front of house, and forward facing books on shelves. This space is expensive and hard to get, but if you’re one of the lucky ones to get these highly visible spots, then buyers will often pull in large quantities of your book to fill the space.

Distribution: If you’ve got a quality distributor and want national distribution with the major retailers and independent bookstores, then you’re going to need more copies available than if you were going for strictly regional, online, or direct sale distribution.

Size of audience: If you’re writing a ground-breaking book on how to reverse global warming, then you’re audience is going to be a lot larger than if you were writing a book about knitting sweaters for kittens. If you’re writing to a niche audience, you might want to be more conservative in your estimates.

Storage cost: When books are not on the shelves, they have to be somewhere. Where you don’t want a lot of them is in a storage facility collecting dust as you are being charged per month, per book. A realistic print run in the beginning can save you a lot in future storage costs.

When considering the number of books to print, it doesn’t require that you err on the side of being conservative or liberal with your estimates, but you do want to stick closely to reality. You want to make the most money you can early in the life of your book when marketing efforts work and demand is at its peak. It’s impossible to predict audience demands, trends, and the overall success of the book, but an educated guess beats any shot in the dark.

A Bestseller by Any Other Name

January 19, 2007

BestsellerByAnyOtherName.jpgTo very loosely paraphrase the Bard, what’s in a bestseller?

That which we call a New York Times bestseller by any other name (such as “underground bestseller,” or “Amazon bestseller”) would smell as sweet—well, maybe not.

As the number of books published each year continues to skyrocket upwards, we face an onslaught of “bestseller” claims. We see the word on marketing materials and press releases, on book covers and websites, and, at Greenleaf Book Group, on many submission forms each week. If this bestseller crown has not been awarded by one of the major publications, such as the New York Times, the Wall Street Journal, or USA Today, what kind of bestseller is it? The publisher may be partaking in sensationalist marketing—or just a stretch of the truth.

Whether the claim will benefit them or not depends on whom the publisher is targeting with this information. If the publisher intends to woo the consumer with bestseller claims on the book cover, yes, there’s some chance it could help—although once your happy customer discovers the “bestseller” isn’t as well-known as she thought, there may be repercussions. However, and this is a HUGE “however,” a trumped-up claim of bestseller status could seriously hurt that publisher’s reputation in the eyes of wholesalers, distributors, agents, and other parties in the tight-knit publishing industry, and that harm could result in books not getting on shelves. Note to all small publishers making larger-than-life bestseller claims: you’re not pulling the wool over the industry’s eyes.

Industry types have access to such fabulous tools as Nielsen’s BookScan to research your sales history, and they will certainly consult them (amongst other resources) to corroborate your claims before making a decision to support your title. BookScan is a point-of-sale reporting service thought to reflect sales from approximately 70 percent of booksellers nationally. BookScan uses weekly data from over 6,500 retail, mass-merchant, and non-traditional outlets in combination with a statistical weighting methodology to present the most accurate information on sell-through available to the publishing industry. Certain notable accounts are missing, including Wal-mart, Sam’s Club, airport bookstores, and Christian book retailers. Still, BookScan is a great gauge of sell-through, and as such, it is becoming increasingly influential in how sales are measured and bestseller lists are compiled.

While BookScan offers great insights into overall sales numbers and trends, it is not used exclusively (or sometimes at all) in building the prestigious bestseller lists. The holy grail of bestseller lists is the one published by the New York Times. The methodology behind how this list is built is kept rather hush-hush. But most reports on the subject agree that the New York Times sends out a list of preselected trade titles (meaning titles you would find in a bookstore, not the boring academic titles like medical and law books that generally outsell them) to a selected group of close to five thousand retailers and wholesalers for them to record the books’ weekly sales numbers. There are allegedly blank lines for the recipients of this survey to write in titles not included on the form. That’s a quaint thought, but from what I know about inventory managers, highly unlikely to come into practice often.

With any bestseller list, it’s important to note that it’s a measurement of velocity of sales, not life of sales. A book that moves five thousand copies in one week is likely to make some list in some capacity when that week’s numbers are run; however, a book that sells five hundred copies a week for ten weeks straight probably won’t make any list at all. Lists also differ in how they categorize titles. For instance, the New York Times sorts by category (fiction, nonfiction, children’s) and format (hardcover, trade paper). On the other hand, USA Today’s list lumps them all together, from 1–150 by sales numbers, period. This means that a book listed at number one on the New York Times hardcover fiction list could be ranking in the triple digits on the USA Today list. Amazon.com’s ranking system is a whole separate article in itself.

Differences in list-building aside, the notable bestseller lists are meant as a barometer of American culture. No list is 100 percent accurate, and none purport to be. Still, bestseller status on a major list is highly coveted, highly profitable, and highly protected specifically so that the word “bestseller” does not become meaningless. Use your sales history to support your efforts to expand your publishing endeavors, but be wary of making unsubstantiated bestseller claims lest you earn the wrath of industry types. Star-crossed lovers or not, that kind of behavior can bring a plague on all your houses.

Bigger Discounts Just in Time for the Holiday Season

October 25, 2006

Barnes & Noble announced deeper discounts for their membership club members to help compete against discounters, warehouse clubs and online retailers. Members pay $25-a-year and receive a 40% discount on fiction and nonfiction bestsellers, and a 20% discount on all hardcover titles. They will also continue to receive a 10% discount on everything else sold in the store, including coffee and paperbacks. Members had received an extra 10% discount in addition to the usual 30% discount off hardcover bestsellers, and a 10% discount on other adult hardcover titles.

In an article by Jeffrey A. Trachtenberg of the Wall Street Journal, Joseph J. Lombardi, Barnes & Noble’s chief financial officer, is quoted as saying "You have to be competitive. We've been talking about softness in the hardcover business, and this lets us support that format with our best customers."

To learn more: http://online.wsj.com/article/SB116174027712702867.html?mod=2_1167_1

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Is Sony's Reader the Beginning of the End for Paper Books?

October 13, 2006

The reviews for Sony's Reader came out this week in the New York Times and The Wall Street Journal and while the reviews are favorable the end of paper books is not close at hand. The New York Times review of the Reader made several great points on the pros and cons of the e-book reader:

Pros:

1) Size: At slightly smaller than 5 inches by 7 inches and weighing in at 9 ounces, it can easily be taken with you on vacations and business trips.

2) Technology: "The Reader employs a remarkable new display technology from a company called E Ink. Sandwiched between layers of plastic film are millions of transparent, nearly microscopic liquid-filled spheres. White and black particles float inside them, as though inside the world’s tiniest snow globes. Depending on how the electrical charge is applied to the plastic film, either the black or white particles rise to the top of the little spheres, forming crisp patterns of black and white. The result looks like ink on light gray paper. The “ink” is so close to the surface of the screen, it looks as if it’s been printed there. The reading experience is pleasant, natural and nothing like reading a computer screen."

3) Power: You never have to turn the Reader off. The only time the Reader uses electricity is when you turn the page. And with one charge good for 7,500 page turns, you can read almost 16 books before having to charge the Reader back up.

Cons:

1) Lighting: Unlike a laptop where you can view the screen in bed with the lights out, Sony's Reader needs ambient light.

2) Search: Sony's Reader does not offer a search function, video or clickable links.

3) Price: Coming in at $350 and the price of the e-book you would like to read, which can run you anywhere from $8 and up, it might be an expensive gadget to buy when you can spend about 2% of that on a paper book at your local bookstore.

We all love gadgets, but there's something to be said about curling up in your favorite chair, reading a great book and turning those paper pages to see what is going to happen next.

To read the New York Times review on the Sony Reader go to http://www.nytimes.com/2006/10/12/technology/12pogue.html.

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