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Thursday, December 4, 2008

Why You Should Go To a Bookstore

Posted by on Thu, Dec 4, 2008 at 2:45 PM

amazonattack.jpg*
Village Books, up in Bellingham, has never been on my list of favorite bookstores—I always thought the inventory was a little shallow—but Village Books owner Chuck has written a great little blog post explaining exactly why bookstores charge so much more than Amazon.com. I used to get the Amazon thing a lot when I worked in a bookstore—"It's fifteen bucks less on Amazon! Why are you so expensive?"—and this would have been a great resource to show those customers.

Thanks for your note and the chance to let you know a bit about book pricing. The publisher sets the suggested retail price of a book and bookstores and other resellers buy the books for a discount off of that price. Our discount is in the range of 40 - 45% off the retail price. Regular discounts that we give, such as our frequent buyer program, school discounts, our birthday card discounts, etc. pare that margin down to below 40%. The costs of operating a bricks-and-mortar retail establishment—occupancy, personnel, etc. eat up most of what remains. In the most profitable days of retail bookstores bottom-line profits were about 2%. Stores have struggled for several years to get back to that point in spite of low compensation (including that of owners—Dee and I make less than we would if we had stayed in education) and controlling every possible expense.

Amazon and other online retailers have created a very low-cost delivery system, though it's still unclear whether they really make money on the book part of their business, given all of the other products they sell. We simply cannot compete with those vendors on price. What we believe we do deliver is a contribution to the quality of life in the community that remote mail order businesses cannot and will not provide. Each reader will make his or her choice on the basis of what is most important to them. Retail bookstores may well be the buggy whip stores of a previous century. In 1992, when I was president of the American Booksellers Association there were about 4500 independent bookstores. Today there are fewer than 1500.

It goes on and you should read it all. Really: Unless Seattle shoppers really make a point of hitting up a few local independent booksellers this Christmas, we might have to say goodbye to one or two of them in the very near future. I know a lot of them are suffering financially this year.

*To the best of my knowledge, Amazon has never attacked bookstores with bees.

 

Comments (26) RSS

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1
That goes for almost all other local, indepent retailers. It seems that people don't realize that if we don't support local retailers, we'll end up with nothing but Wal-Mart, Amazon and Best Buy.
Posted by meeps on December 4, 2008 at 2:57 PM
2
On Amazon, you can't walk up to someone who works there, and say, "I want you to recommend a book with a plot that sounds fucking stupid, but I have to read because it's fucking amazing." If a computer can master that, I may switch.
Posted by Gitai on December 4, 2008 at 3:15 PM
3
I use Amazon to find books I want and then either buy or special order them at my local book store.

Posted by AK Rob on December 4, 2008 at 3:18 PM
4
On the other hand, none of the books I buy on Amazon -- something like 50 a year -- have ever been or ever will stocked by a local store (where I buy a further 100 or so, if you'll allow me to include "local" stores in places I am, not places I live).

Seattle's got some decent bookstores, but none that are really spectacular. The last book I bought was in the SAM shop; before that, several armloads from a fantastic shop in Penticton, BC.
Posted by Fnarf on December 4, 2008 at 3:22 PM
5
I tend to shop at independent used books stores or buy directly from publisher sites if possible. I have issues with Village mainly stemming from their incredibly small selection and large amount of wasted space.
Posted by mdurango on December 4, 2008 at 3:25 PM
6
The problem is, not everyone cares about the things that a bricks and mortar bookstore has to offer. Many (most?) people see books as a commodity, where price is the only thing that matter.

So, it seems to me that in order to survive as for-profits, bookstores either need to (1) convince more people that what they have to offer is valuable (not an easy thing to do), or (2) change their business model to reflect that the book business is not going to be a profitable enterprise going forward. I don't have the answer to what #2 looks like (a bookstore/bar? a bookstore/cafe? a bookstore/publisher/self-publishing outlet?), but there might be a viable model out there somewhere.

The "contribution to the quality of life of the community" statement reminded me of Dan's earlier assertion that newspapers should go nonprofit. If that is what bricks and mortar bookstores have to offer, it seems like they could "convert to non-profits, raise money from the civic-minded, squeeze subsidies from local governments, and limp along as charities, not businesses" as Dan said.
Posted by Julie in Chicago on December 4, 2008 at 3:27 PM
7
@4: I often run into that problem too. Certain books I just can't find. I know I should do more special ordering...but the seductiveness of Amazon when it comes to them is that it'll be far cheaper (particularly if I get them used) and faster.
Posted by Abby on December 4, 2008 at 3:27 PM
8
this reminds me of the book "reluctant capitalists" (uchicago press) that I read whilst working at your former store, mr. Constant.
Posted by David E. on December 4, 2008 at 3:28 PM
9
The discount that Amazon demands from publishers is crazy. The Amazon discount is around 60%, which is why they can price their books so low.
Posted by Mike on December 4, 2008 at 3:32 PM
10
The problem with bricks and mortar stores isn't that they don't cater to my tastes; it's that my tastes are esoteric -- and everyone's tastes are too. It's called "the long tail". Even if you have 40,000 books in stock -- which few shops do -- you're only going to have a tiny portion of the books that are available. And while only a few of those books sell in large quantities, a very large portion of total sales come from all the unpopular books at the end of the tail. Bricks and mortar shops can't afford to keep all of these in stock; there's too many of them. But if you don't have them, you're losing a ton of your potential sales. Even largish shops like the U Bookstore or Elliot Bay or Third Place seem empty to me. You can't win, unless you can figure out a way to climb over the top and turn into Powell's or something.

You used to be able to survive as a specialty shop, art books or whatever, but the problem there is, you're missing the fat base of the tail, where your mass sales and easy profits are.
Posted by Fnarf on December 4, 2008 at 3:35 PM
11
At a bookstore I might be able to get the opinion of 1 or 2 people on a book. On Amazon I can get the opinion of hundreds or thousands. I can also easily see books liked by people who like the same books I do, see other book by the same author regardless of genre, and find many many books that small stores just cannot carry.

There is also the fact that lots of people sell used and hard to find books on Amazon making living in the process. And the fact that it is much easier to get a book on Amazon then to get into various book stores making it easier for smaller publishers to hit a large audience. The rise of e-books helps this as well.

Personally, while there is that nostalgic charm of walking though a bookstore, I just don't see any particular reason to shop at them. I'm certainly not happy to see people losing their stores and livelihoods, but such is the way of buisness.

Posted by sgiffy on December 4, 2008 at 3:36 PM
12
I really do try to hit the locals as well, for more than just books, but sometimes it does come down to price... If I can get it for $10 less and only have to wait a few days for it, well, yeah. I know some of them are in dire straits financially, but guess what, so am I!

The blog post is a huge over-simplification of how Amazon does business, but the basics are right. Volume(and other operational efficiencies) wins on the publisher discount side, and high per sqft efficiency wins on the storefront/warehouse side. There's just not many ways small bookstores can compete.
Posted by bb on December 4, 2008 at 3:50 PM
13
@2 - Speaking as a retail salesperson, if a computer can master that, he can fucking have that customer - they're usually a major pain in the ass to deal with.
Posted by Fries with that? on December 4, 2008 at 3:59 PM
14
I don't see why small booksellers deserve to keep their jobs any more than Big 3 executives do: the fact is that you cannot continue a failing business model indefinitely, whether a small business or a corporate behemoth. At some point, reality must catch up. Online megastores like Amazon (a local company, too, incidentally...) will one day give way to some future technology/business model as well.

Also, the book business is terribly ungreen. Publishers put out hundreds of thousands of copies of books they know won't be bought, or that they know will be returned, and these end up recycled or in landfills--after all the carbon emissions involved in creating the paper in the first place and shipping the heavy books all around the world. The planned-in waste involved in the whole enterprise is offensive.

In addition to e-books, on-demand publishing is the way of the future; I've already seen demonstrations of on-demand printing and binding, and Amazon and other companies already offer on-demand editions of some materials. The result is a very handsome bound volume--but with much lower environmental impact.

The old general store that every town used to have also eventually met its demise; small bookstores will soon be gone. Nothing to be done, near as I can see.
Posted by Simac on December 4, 2008 at 4:00 PM
15
That batman pic is rightous!

A deadly bee weapon. Bees. My god.
Posted by Urgutha Forka on December 4, 2008 at 4:35 PM
16
Amazon and other low-cost retailers are something that isn't going to go away. Small book shops have to adapt their business model in order to encourage people to actually visit their stores.

Elliot Bay employs book readings / signings, events, community events, cafe, etc to get people into their store, and organizes the store so it is easy and interesting to browse. I like going there, and sometimes a book will catch my eye, and I'll buy it on the spot. There are like two other book stores within a few blocks of Elliot Bay that I have never entered -- they look small, not browsing friendly, and there's nothing going for them.
Posted by General Zod on December 4, 2008 at 4:47 PM
17
I'd support small, local book stores more, but I'm allergic to cats.
Posted by Alex on December 4, 2008 at 4:49 PM
18
@11 Exactly my thoughts.
Posted by Chris on December 4, 2008 at 5:03 PM
19
@14. Can't go a day without one of you fuck faces on Slog talking that green shit. In case you forgot, Amazon ships EVERYTHING in pounds of cardboard and packaging. I don't think that's very green either.
Posted by Brian on December 4, 2008 at 5:16 PM
20
My local bookstore in my dinky rural California town 200 miles from anywhere makes HUGE contributions to the life of the community: hosting fundraisers for non-profits, art events, kids' activities, etc., etc. She and her staff have a great mix of books.

And anything I hear about on NPR or see reviewed in the paper that intrigues me, she can almost always order to arrive in 2-3 days. When I was in larger cities, I never understood why a special order from B. Dalton's, Borders, B&N, etc. would take "4-6 weeks." If the biggies are still pulling that bullshit, they deserve to go tits-up. It was clear they wanted me to make a selection from their thousands of bland, middle-of-the-road books in stock. The big-city indepedent booksellers could get books right away too.

For all those reasons, not to mention that fucking Amazon charges different prices to different people depending on what their secret algorithms think you'll pony up, I'm happy to pay list price at my local independent.
Posted by rob on December 4, 2008 at 5:58 PM
21
Fnarf and I are of one mind on this. Rarely are the books I buy so mass produced that I can find them at a bookstore, even Barnes and Noble. When they are, they are usually in the Top 10 NYT bestseller list (Stephen King) that I pick them up at QFC for 40% off,

Also since I am in a wheelchair, I find bookstores to be very handicap unaccessible. The rows are too narrow for my motorized wheelchair making most of the books out of reach (God help me if I wind up damaging books) and my being in a chair pisses people off (it's hard enough going to the library).

I miss going to bookstores, especially used ones, where I am much more likely to purchase something. I miss going to Horizon bookstore up on 15th on Capital Hill as well as all the Twice Sold Tales stores. The last time I bought books was over a year and a half ago, back when I could walk, was at Powell's books in Portland.

If we had a handicap friendly Powell's-type bookstore in Seattle, I might go every day.
Posted by elswinger on December 4, 2008 at 6:54 PM
22
@16 and 26, I think that's exactly the model the successful stores will employ. There is a reason people go there aside from a sense of obligation.
Posted by sgiffy on December 4, 2008 at 7:46 PM
23
Bookstore fans with access to a car should go to Duvall Books. It was the salvation of my child out there in cowshitland and it still rules. I love used bookstores passionately and I think some of them will endure for a while.
Posted by Luke Baggins on December 4, 2008 at 8:41 PM
24
Usually, it's impossible to find books that interest me in small, independent shops. I could special order, but who wants to wait two weeks for a book when I can get it at Barnes & Noble right away or order it from Amazon with a discount.
Posted by Lloyd Cooney on December 5, 2008 at 1:55 AM
25
at least in seattle, amazon does contribute to the quality of life in certain neighborhoods. screw the rest of the country.
Posted by slu slut on December 5, 2008 at 2:16 AM
26
@13 Dealing with me has gotta be more interesting than inventory or answering, "Where do I find the Twilight series?" for the millionth time that day.
Posted by Gitai on December 5, 2008 at 3:43 PM

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