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Hen81
Veteran Poster
Username: Hen81

Post Number: 154
Registered: 09-2007

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Votes: 0

Posted on Sunday, December 21, 2008 - 03:53 pm:   

The publishing business must adjust as booksellers will. This is an old business model that has practices from the Great Depression, returnable books. The traditional model runs on demand lag, meaning produce an economical unit run which could be in the tens of thousands and load the channel from warehouse to retail while generating demand in hopes of clearing the sunk cost inventory. Some of these lead times are 18 months to 2 years. Suppliers are being paid for production, shipping and stocking. If an economic downturn hits and demand/discretionary income drops, it's an auto generated loss up and down the chain.

I think returnability has to go, it's the wild card of the business. Run lengths are going to be examined in relation to unsold/remained inventory and POD will be more of a factor. Bestsellers have referred to shipped and I think it has to go to retail sold.

www.DTPollard.com

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