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Troy
AALBC .com Platinum Poster
Username: Troy
Post Number: 1625
Registered: 01-2004
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Votes: 0 (Vote!) | | Posted on Saturday, December 20, 2008 - 11:53 am: | 
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Self-publishing a book: 25 things you need to know
http://reviews.cnet.com/8301-18438_7-10119891-82.html
"Against the advice of my agent, I began perusing the big self-publishing companies' Web sites and evaluating what they had to offer. Then I started poking around blogs and message boards to get customer testimonials. What I found was a veritable minefield with roads that forked in every direction and very few clear answers." |
Troy
AALBC .com Platinum Poster
Username: Troy
Post Number: 1626
Registered: 01-2004
Rating: N/A
Votes: 0 (Vote!) | | Posted on Saturday, December 20, 2008 - 12:05 pm: |
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Neat little article. Does not go into great depth or cover all aspects, but I think it is very useful and offer some practical insight into self-publishing.
___
Side Bar: We all get email from people who forward jokes, inspirational PowerPoint presentations, chain letters, etc. I read almost none of these types of emails.
There are some people whose emails I stopped reading entirely because 99% of what they send me is junk. Occasionally I’ll run into one of these folks and they'll say, "Hey, I emailed you the other day and you did not reply"...
There are however a small minority of people who fall into the category of: “Read Everything They Send". They consistently send me something I’d want to read. The person who forwarded me the article above falls into that category.
I strive to be like that person. |
Schakspir
AALBC .com Platinum Poster
Username: Schakspir
Post Number: 1239
Registered: 12-2005
Rating: 
Votes: 1 (Vote!) | | Posted on Saturday, December 20, 2008 - 12:58 pm: |
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1. Money
2. Money
3. Money
4. Time
5-25. Money. |
Urban_scribe
AALBC .com Platinum Poster
Username: Urban_scribe
Post Number: 708
Registered: 05-2006
Rating: N/A
Votes: 0 (Vote!) | | Posted on Saturday, December 20, 2008 - 06:07 pm: |
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I always disagree with these pro self-pubbing lists on their No.1 reason to self-pub. I believe the No.1 reason to self-pub should always be, you've got mad selling skills. You can write the greatest book in the world, but if you don't know your target audience or how to sell to your target audience, then, really, what's the point? Here in NYC, I encounter more than my fair share of self-pubbers. I always try to support self-pubbers because I admire their initiative. Yet, I must admit that I'm more inclined to buy a self-pubbed book from a self-pubbed author who interacts with their potential buyers than the self-pubbed author who just sits/stands there expecting the book to sell itself.
With self-pubbing becoming more and more accessible and books made available in numerous formats, competition in the self-pubbed world is through the roof. Throw in the fact that in these difficult financial times the publishing industry has suffered a major blow: Random House, Houghton Mifflin Harcourt, Macmillan, Borders, and Barnes & Noble, just to name a few, are downsizing and closing stores left and right. Independent bookstore - what's that? And as of the end of this year, you must be a registered publisher just to check your book sales on Ingram, which used to be a free automated service accessible to everyone. So I say if you've made the decision to self-pub, take it to the streets and put together one helluva sales pitch; convince me in 30 seconds or less why I'd be crazy not to buy your book. If you can't do that, then you've got no business self-pubbing, imo.
There used to be a time when ANYBODY could self-pub and make a decent profit without jumping through hoops; there used to be a time when ANYBODY could launch an indie press or open an indie bookstore and stay alive without unnecessary effort simply because the book market was strong. Book lovers/avid readers WANTED books, they had the spare money to buy books as entertainment; knowing full well they'll inevitably purchase a few "turkeys" along with some great reads. Then Dubya waged a bullshit war and put the country in a recession. Now it's a whole lot harder getting someone to part with their hard earned $10 for a mass market paperback, $15 for a trade paperback, or $25 for a hardcover. FACT: 2008 was one of the worst fiscal years in publishing history. So until the market becomes strong again, a seller's market, if you plan on selling books, self-pubbed or otherwise, you gotta move the crowd. Your 30 seconds start ... NOW! |
Troy
AALBC .com Platinum Poster
Username: Troy
Post Number: 1629
Registered: 01-2004
Rating: N/A
Votes: 0 (Vote!) | | Posted on Saturday, December 20, 2008 - 08:01 pm: |
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For the sake of clarity I broke out the 25 things you need to know, reference the article for full detail:
1. Self-publishing is easy.
2. Quality has improved.
3. Some of the more successful self-published books are about self-publishing.
4. Good self-published books are few and far between.
5. The odds are against you.
6. Creating a "professional" book is really hard.
7. Have a clear goal for your book.
8. Even if it's great, there's a good chance your book won't sell.
9. Niche books do best.
10. Buy your own ISBN--and create your own publishing house.
11. Create a unique title.
12. Turn-key solutions cost a lot of money.
13. Self-publishers don't care if your book is successful.
14. Buy as little as possible from your publishing company.
15. If you're serious about your book, hire a book doctor and get it copy-edited.
16. Negotiate everything.
17. Ask a lot of questions and don't be afraid to complain.
18. Self-publishing is a contact sport.
19. Getting your book in bookstores sounds good, but that shouldn't be a real concern.
20. Self-published books don't get reviewed.
21. Design your book cover to look good small.
22. If you're selling online, make the most out of your Amazon page.
23. Pricing is a serious challenge.
24. Electronic books have potential, but they're still in their infancy.
25. Self-publishing is a fluid business.
Schakspir, it really does not take much money to publish a book. It does however take money (or help a great deal) to sell one.
If all you want to do is publish a book self publishing for posterity, ego or to share with a relatively small number of people; self-publishing is an excelent inexpensive route. It is a personal decision. Often making money is not a factor as many have suggested, on these boards in the past.
As major published layoff staff sign fewer authors, this is actually an opportunity for small presses and self publishers.
Years before the financial crisis, it was pretty clear the business models followed by major publishers was out dated. They were last business entities to do anything meaningful with their web sites, they still sell books returnable...
Now if you wanna sell a ton of books that a completely different story.
As Urban_scribe says you need "mad selling skills" and certainly money. In fact I'd take money over everything else (as Schakspir makes abundantly clear) 'cause with money you can buy almost everything else you'd need -- assuming there is a market for you book.
The article's focus is on things you need to know if you are going to self-publish a book not so much on the "reasons" to self publish. So, Urban_scribe, I'm not sure why you take issue with this specific article.
Urban, I also have to say, I almost completely disagree with your 3rd paragraph. Why do you say 2008 was the worst year in publishing history? On what basis are you making the comparision? In addition, I'm not sure there was ever a time when ANYONE could launch an independent press or bookstore and make money without effort. It was always hardwork. Sort of like being a teacher -- you don't do it to get rich, you do out of passion. Of course there are those who have gotten rich self publishing, but they are rare relative to the number of self published authors in total. |
Urban_scribe
AALBC .com Platinum Poster
Username: Urban_scribe
Post Number: 710
Registered: 05-2006
Rating: N/A
Votes: 0 (Vote!) | | Posted on Saturday, December 20, 2008 - 09:08 pm: |
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Why do you say 2008 was the worst year in publishing history? On what basis are you making the comparision?
Gimme a minute to go digging and I'll get back to you with stats and sources.
I'm not sure there was ever a time when ANYONE could launch an independent press or bookstore and make money without effort. It was always hardwork.
Note the qualifier "unnecessary" in my original post (...without unnecessary effort simply because the book market was strong.) True, everything we seek to accomplish takes effort, but when times are hard, as they currently are, everything requires that extra oomph to get desirable results. Under "normal" circumstances, you've a bit more breathing room; don't need to work as hard to obtain desirable results. It's the whole survival of the fittest theory. Y'know there used to be short-necked giraffes and long-necked giraffes, then food became scarce and the short-necked giraffes eventually died out because they couldn't reach the leaves that were on branches high up in the trees. The long-necked giraffes had to work harder, put in "unnecessary effort" to obtain the same result - eating, but hey, they're still around today.
Statistically, the 60s-80s were the "hot" years for launching indie presses and indie bookstores. Very low startup costs, running your company out of the comfort our your home or leasing a storefront for an average of $3/square foot - even in major cities like NYC; self-distribution was the norm, so getting an appointment with chain bookstore buyers was a breeze, there was no stigma attached to self-pubbing as it is today, you didn't need the validation of the "industry" because you were the industry.
San Francisco was the place to be, though. San Fran KILLED NYC (and every place else) with the launch of small presses and indie bookstores during the 60s-80s. Most of those indie presses are now defunct and the indie bookstores have closed, but when they were booming, they were booming. Industry analysts reference the 60s-80s publishing boom to argue that the publishing industry has been in a downward spiral since the mid-90s, and what happened this year was inevitable - even without our present recession. In my view, their argument hinges on when publishing became a conglomerate rather than citizens expressing their constitutional freedom of speech through the written word, the industry as a whole went to the dogs, and that the self-pubber and indie presses are truly the backbone of publishing.
Gosh, I've collected some great articles on publishing this year. And I attended a wildly insightful 3-day conference in Moline, IL during the summer that covered everything from overseas printing to viral marketing. I felt like I was back in college, taking notes as fast as I could because so much info was coming at me all at once.
Lastly, I don't take issue with the article per se, good tidbits of info there; I just think that if you don't know how to effectively sell your book, it doesn't really matter if you know/understand the steps involved in self-pubbing. I believe knowing how to sell and knowing who you're selling to is the caveat to successfully marketing and promoting ANY product. For me, "the 25 things you need to know" didn't stress that point enough. |
Urban_scribe
AALBC .com Platinum Poster
Username: Urban_scribe
Post Number: 711
Registered: 05-2006
Rating: N/A
Votes: 0 (Vote!) | | Posted on Sunday, December 21, 2008 - 10:55 am: |
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Troy, I stayed up a good portion of the night putting this together. You owe me lots of coffee.
RANDOM HOUSE INC.
We soon conclude an evolutionary 2008 for Random House: a year of many publishing triumphs, and a year in which we have begun implementing a strategy and vision for our company that will enable us to come out ahead and build our business profitably amid an almost unprecedented economic downturn. Each of our divisions worldwide has been rethinking, and in some cases reformulating, what we must do to adapt to the changing ways our books are being ordered and sold by our retailers and distributors and purchased and read by consumers. We have faced and will continue to approach these and other challenges directly, confidently, and creatively.
Let’s look forward. With the economic forecasts for 2009 growing more pessimistic each day, it is critical for us to have a clear plan for a successful future, focused on increasing creativity, efficiency, and effectiveness.
It is hardly a secret that many of our booksellers around the world are struggling. Some have implemented tighter inventory controls, which has a tremendous impact on every publisher’s frontlist and backlist orders.
The biggest challenge to our bottom line in the coming year will continue to be rising costs. For some, it is a tough message to be asked to consider reducing your spending as part of your daily decision-making, but cost saving is as much a mental as it is a financial discipline. The more we save in costs, the more we will have to invest in our publishing.
We cannot allow the economic crisis to overshadow or distract us from the enormous commercial potential of our imprints’ publishing programs for the coming twelve months.
The strength of our 2009 publishing programs clearly illustrates that with every crisis come opportunities. Let us share a commitment to become more resourceful, more accountable, more responsive, and more collaborative as we continue to acquire and publish the best books in the world. Let us take this opportunity to come out of these times stronger than ever as an international team in a global company. Our future has begun—and it starts with you.
Markus Dohle, Chairman and CEO, Random House Inc.
BOOK BUSINESS MAGAZINE
Random Freezes Pensions
We were forwarded an internal announcement that Random House is freezing all pensions at their current levels and will not give pensions to new employees hired as of January 1, 2009, and the news is the focus of an AP story as well. The article notes that "the company will continue to offer matching funds, up to 6 percent, for 401k plans."
SCHOLASTIC CORPORATION
NEW YORK--(BUSINESS WIRE)--Scholastic Corporation (NASDAQ: SCHL), the global children’s publishing, education and media company.
Scholastic CEO Dick Robinson has written to employees to explain a four-part workforce reduction "which we believe is balanced and respectful to employees, retains as many jobs as possible, and reflects the spirit of Scholastic while meeting our financial requirements in a difficult economy."
The measures include a voluntary resignation offer for employees over 50 who have been with the company at least 10 years and are "considering retirement or other career options"; a freeze on new hires (openings will be filled from within the company); the elimination of merit raises for employees above a certain wage level; and a broader "reduction of headcount and reduction of other costs" as they "re-engineer our processes with a view to finding new and fresh ways of operating."
Robinson says their goal is have the plan "accomplished by the end of 2008." He adds: "While these steps are difficult, they will result in a stronger, more efficient Scholastic in a world of consumer change, rising costs, and a tight economy. This in turn will help us to ensure our company's success and preserve the jobs of our staff going forward."
Earnings from continuing operations in the second quarter were $58.4 million or $1.55 per diluted share compared to $82.3 million or $2.10 per diluted share a year ago. Operating income from continuing operations was $107.8 million in the second quarter compared to $138.9 million in the prior year period. This reduction was largely attributable to severance and one-time expenses associated with the Company’s cost reduction plans of $10.9 million before tax ($0.17 per diluted share), as well as an unfavorable foreign exchange impact of $6.7 million. In addition, higher royalty reserves and increased allowances for doubtful accounts in domestic and international trade publishing operations impacted operating income by $6.3 million.
The Company reported consolidated earnings in the second quarter of $43.1 million or $1.15 per diluted share compared to a year ago when it reported consolidated earnings of $75.6 million or $1.93 per diluted share. These results included a loss from discontinued operations, net of tax, of $15.3 million or $0.40 per diluted share compared to a loss of $6.7 million or $0.17 per diluted share in the prior year.
Scholastic achieved the top end of its current cost savings goal, eliminating $35 million in annualized expenses, including $25 million in salary expense. In addition to these savings, the Company announced that it has reduced its spending plan for the second half of fiscal 2009 by a further $20 million by eliminating management bonuses and reducing all categories of discretionary spending. It also continues taking steps to make core businesses more efficient, further reduce staffing and exit unprofitable markets.
“We have revised our outlook for fiscal 2009 to reflect the current market environment, year-to-date results and these additional spending cuts. We remain confident that our strong products and direct channels will continue to grow in the long term, while we improve profitability and maintain a solid financial foundation.” Richard Robinson, Chairman, President and CEO, Scholastic Corporation
HOUGHTON MIFFLIN HARCOURT
Following the license of Greenwood Publishing Group's imprints and titles to ABC-CLIO, Houghton Mifflin Harcourt will close Greenwood's Connecticut office and layoff approximately 150 employees as a result; layoffs will begin in early December.
It was less than a month ago that Houghton Mifflin Harcourt held an "open house" at their New York offices to celebrate the first combined list of the once separate trade lines, but now that welcome is firmly closed as the trade and reference division has "temporarily stopped acquiring manuscripts," according to VP of Communications Josef Blumenfeld.
As first reported by PW and followed by the WSJ and NYT, Blumenfeld struggled for metaphors to explain the policy: "We have a temporary freeze on. We are working on what we already have." Or rather, "there is a freeze-lite" he said. "There is a way in so it is not a hard freeze but for right now, there is a temporary -- call it a freeze if you want." Or maybe they are keeping the pipes empty before they can freeze?: "We have turned off the spigot, but we have a very robust pipeline."
Blumenfeld explains further: "The climate is difficult. It's about cash outlays, and every outlay of cash in every industry is being scrutinized." But is it about expenditures, or symbols? "In this case, it's a symbol of doing things smarter; it's not an indicator of the end of literature."
They also suggest that the lite freeze on that spigot might leave room for a trickle, since, while saying they are not acquiring new projects, "there are still things being considered by the acquisition committee." But now that it's been made clear to agents they aren't acquiring, there won't be a lot of submissions coming in the door to consider. Which is the really scary part about saying out loud you aren't acquiring.
THE PUBLISHING TICKER
How Bad Is It?
How are publishing-related entities faring relative to the overall market as stock prices continue to fall? Fair warning: this story is not for the faint of heart.
Barnes & Noble is off 19 percent from their high on September 19 of 29.06, beginning their tumble after S&P cut their rating on the stock to "sell."
Scholastic had peaked on September 19, and is down 26 percent since then.
John Wiley is off 25 percent from its September 11 high of 43.64.
Borders is off 44 percent from their high on September 11 of 7.80; if their decline continues at this rate, financial analysts predict bankruptcy filing.
(from Brad’s Reader: all things literature and writing)
Borders offering 50% discounts amid financial troubles
Dec 11, 2008 8:03:28 PM
I'm usually not one to predict bad news, but things don't look good for Borders. Even with their 50% discount promotion, I'm not sure how much longer after the holidays the second largest retail bookstore chain will last.
My reasoning? The larger-than-usual discount Borders is offering is, as many people see, one final desperate attempt to drive customers to their stores in hopes of regaining even a little financial stability. Or maybe it's a discrete attempt to get rid of inventory before closing their doors for good. Maybe I just have too much time on my hands and think about this stuff too much and my prediction is way off base.
Regardless, the bad economy is really hitting most retailers in the gut. It will be interesting to see in 2009 just how many of the larger retail chains come out of this crisis alive....bruised maybe....but still alive.
Books-a-Million has fallen even further, giving up 49 percent since peaking at 7.20 on September 11.
Among book publishers with publicly-traded parent companies:
Pearson's London shares peaked on September 12 at 697.50 pence and have dropped 22 percent since then.
Hachette parent Lagardere is down 31.5 percent from its high of 38.22 on September 12.
Harper's owners News Corp. are down 36 percent since peaking on September 12.
Simon & Schuster parent CBS is down 40 percent since September 11. Simon & Schuster broke from three straight quarters of sales and profit declines with a strong third-quarter showing. Sales of $225 million were up 5 percent from $214 million a year ago (though they are still down 5 percent overall thus far in the fiscal year).
Bloomsbury has been quite resilient, losing just 3.5 percent.
A little further afield, Amazon peaked at $81 a share on September 19, losing 31 percent since then.
Lulu.com is laying off 24 employees, almost a quarter of their workforce of 100. The company plans to relocate its headquarters from Morrisville, NC to Raleigh within the next few months. CEO Bob Young tells NewMediaAge "with the credit and capital markets frozen solid Lulu couldn't continue burning through money at its previous pace. We're very disappointed... we were forced into a position of having to cut costs."
RODALE
The company is cutting approximately 10 percent of its staff, comprising 111 employees in all. The Allentown Morning Call says that 73 of the cuts will come from their Emmaus headquarters; the remaining 38 are in New York and regional sales offices. Rodale says in a release it is "eliminating or consolidating positions in several of its divisions, including operations, IT, customer service and some publishing departments in order to shift resources toward its highest growth potential activities."
As the NY Post notes, "the job cuts come after the privately held company sought unsuccessfully to find a strategic partner to help expand its business and invest in Internet properties. Rodale hired JPMorgan Chase to assist in the quest, but its efforts faltered as the credit markets began tightening."
Big Library Cuts in Philadelphia
As municipalities across the country face large gaps in their budget, Philadelphia is taking "drastic new steps" to face the "economic storm" that include closing 11 of the 54 branch libraries that comprise the Free Library of Philadelphia. Three other branches will have Sunday hours eliminated. Mayor Michael Nutter said the branches were chosen "after careful review of building conditions, utilization and distance to other libraries in the Free Library system." Cutting 220 jobs throughout the city government, approximately one third of those layoffs will come from the library staff.
NY Considers Library Funding Cuts
One more story on the economy: New York's budget division has recommended to the governor a $20 million cut in library support as part of proposed statewide reductions of expenses. That represents about 20 percent of the currently allocated $99 million, a number already slimmed by $4 million from the 2007 allocation. The NY Library Association says the proposal "would bring library aid down to a level not seen since 1993." Executive director Michael Borges says in a statement that "no other educational institutions have been targeted for a 20 percent cut in state funding. There seems to be no recognition by state budget makers that library usage has skyrocketed over the last year as more people turn to libraries for finding jobs, improving their literacy skills and for free reading materials and programs for their families."
Associated Press: Barnes & Noble (11/2008 article)
http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=AP&date=2008 1118&id=9389549
PUBLISHERS LUNCH
BN: Even Worse Than Expected
Barnes & Noble reported sales of $1.1 billion for their third quarter, and a net loss of $18.4 million. Same-store BN store sales of $971 million were down a big 7.4 percent (and fell 4.4 percent overall), while sales at the online unit rose 2 percent, to $109 million. The loss includes a special after-tax impairment charge of $7 million "to reduce the asset carrying value of certain store locations."
The results are below the company's previous guidance and analysts' diminished expectations--the operating loss of .21 a share compares to analysts' prediction of .16 share. BN reduced their fourth quarter and full year guidance as a result, noting "it is difficult to forecast sales with any certainty in the current retail environment," now expecting another 6 to 9 percent same-store decline for the final quarter. That would leave full-year sales down 5 to 6 percent on a same-store basis, with earnings of $1.30 to $1.60 a share.
CEO Steve Riggio says "a significant drop off in customer traffic and consumer spending impacted our business." But he adds, "On a positive note, our gross margins continue to hold up well. We have scrupulously avoided driving unprofitable top line sales growth with additional coupon promotions and extra discounting. Additionally, the company remains focused on producing cash flow. We are managing our working capital efficiently, which is evident in the reduction of $107 million of inventory compared to last year." They will maintain their dividend of .25 a share.
In this morning's conference call, the company declared "traffic is the story for the quarter" and "was the big driver to the negative comp." They noted that "average ticket began to decline, albeit moderately, in mid-quarter."
Having cut planned new stores for 2009 early to a target of 20 to 25 stores, they are "now reducing that number to approximately 15 new stores," of which nine are relocations and upgrades.
Riggio said they were experiencing the "same type of decline reported by other major retailers" and cited in particular the "lack of coverage of books, both in the mainstream media and on talk-radio," due to the presidential election and the economic crisis. Riggio told analysts not to expect extra discounts this holiday to drive sales. "We don't believe that more aggressive discounting is profitable. We can drive traffic, but we don't think we can drive traffic profitably" that way.
Yesterday's trading had already sent shares down another 7.75 percent in advance of today's news, hitting an all-time low--but the stock was down as much as 15 percent this morning before rebounding with the general market.
THE WALL STREET JOURNAL: Books – Barnes & Noble
The WSJ reproduced an in-house memo to Barnes & Noble employees sent by Chairman Len Riggio:
"Never in all of the years I've been in business have I seen a worse outlook for the economy. And never in all my years as a bookseller have I seen a retail climate as poor as the one we are in. Nothing even close." He warns, "we are bracing for a terrible holiday season, and expect the trend to continue well into 2009, and perhaps beyond."
Riggio announces that "new store openings will be curtailed greatly, and discretionary expenditures will be cut to the bone."
Dear Booksellers:
The context for this communication is the financial crisis facing America and the world. Questions abound, including: to what extent is Barnes & Noble threatened by the bleak economic outlook, and to what extent do our great booksellers have cause to worry about their own futures? Also, what are the actions the company is taking to deal with these problems, and what do we expect our people to do in view of these extraordinary circumstances?
The bad news first (followed by the good, I promise):
Never in all of the years I've been in business have I seen a worse outlook for the economy. And never in all my years as a bookseller have I seen a retail climate as poor as the one we are in. Nothing even close. The latest bubble in our system has burst, this time taking with it the hopes and dreams of tens of millions of Americans, and leaving many more in fear of their now uncertain futures. Worse, the full extent of the potential damage is still not known as this confluence of financial disasters has no precedent in our nation's history. Moreover, uncertainty itself can lead to more damage in the system, and thereby help accelerate the downward slide. Alas, we live in a consumer-driven economy: the paradox being that if we don't spend, we go broke.
Barnes & Noble, too, has suffered from this crisis, albeit not as severely as most retailers, and certainly not as much as other booksellers. As you know, our comparable store sales have declined for the first time in our history. As a result, we are bracing for a terrible holiday season, and expect the trend to continue well into 2009, and perhaps beyond.
On the macro front, many millions of Americans will be laid off, money will be scarce nonetheless, and many once famous retailers will shut their doors. We will not be one of them. Still, the decline in retail traffic will affect our business as less people will pass our doors, and competition for the remaining business will become more intense. The result will be a "Darwinian" environment (only the fittest will survive), and the retail species will have to adapt or face extinction. We have and will continue to adapt, and we plan to be around for a long time.
The good news comes in many forms, not the least of which is our being the industry leader by all of the important metrics: sales, sales per square foot, store and company profitability, cash flow, free cash flow, etc. In fact, we still intend to pay out a $50 million dividend to our shareholders this year. In addition, we have a solid balance sheet, excellent standing with the banking community, and more importantly, a large line of unused credit to draw upon. And, even with this year's large sales shortfall, we will make a decent profit, and end the year without owing a penny to our banks. Therefore, we can all be thankful for the excellent job our financial people have done, and for the spectacular and steady leadership provided by our management team. This company has never been in better hands. And, we also need to be thankful for our superb store managers, hard working home office staff, and the thousands of great booksellers in all of our stores. We are blessed to have the very best people in all the world of bookselling.
However, being the best at what we do, and having the best financial metrics, will not alone see us through these troubled times. If anything, we have to be even more diligent with expense controls (lower sales mean lower productivity,) inventory management, and capital expenditures. No, we will not be making Draconian cuts in capital spending as we are committed to having our stores in good repair and condition, our systems ever improving, and to making appropriate investments to secure a better future. On the other hand, new store openings will be curtailed greatly, and discretionary expenditures will be cut to the bone. Finally, unlike some of our competitors, we will not drop our contributions to the 401K plan, not stop overtime pay for holidays, and will not change the composition of our excellent benefits package.
Speaking to some of our good people, I am saddened by the many stories of booksellers who have taken big hits in their 401K plans, including many who have a large percentage of their holdings in (BKS) stock. While it may be of small consolation to you, your losses mirror the losses nearly everyone in America has experienced, even more so those who were heavily into equities, especially stock in retail companies. Unfortunately, I am not in the position to offer you any investment advice, nor can I provide any guidance on what the future may bring. I do suggest, however, that you speak to whatever financial advisors may be available to you, and to be very cautious in your approach to investments.
I realize that some of the things I have noted above may be quite unsettling to you, just as I hope that you will have drawn some comfort in what I said. Surely you will agree that the news of this financial "Tsunami" is well known to all, and has long been on everyone's mind. The main purpose of this forthright and heartfelt communication is to assure everyone that the leaders of this great company remain committed to the common good.
Finally, customer service becomes ever more important in times like these. And, as Mitchell might say, "Put the book in our customers' hands and don't keep them waiting in line!"
Let's make the best of the season!
Leonard Riggio
Chairman
Barnes and Noble
Unfortunately, there are more gloomy to horrific stories on how the publishing industry has fallen on unprecedented difficult times in 2008, but I’ll end on that hopeful note. HAPPY HOLIDAYS EVERYONE! And if you can, give books as gifts this holiday season. |
A_womon
AALBC .com Platinum Poster
Username: A_womon
Post Number: 2465
Registered: 05-2004
Rating: N/A
Votes: 0 (Vote!) | | Posted on Sunday, December 21, 2008 - 11:53 am: |
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This is a reflection of how the global economic crises has affected the book business. It has less to do with publishing business economics, and more to do with the financial catastrophe that the world is in right now.
There is no business that has not suffered lower profit margins in 2008 than other years. So the publishing business must make adjustments just as any other business has to in order to not only survive, but remain strong and viable during this unprecedented economic downturn. |
Carey
AALBC .com Platinum Poster
Username: Carey
Post Number: 1459
Registered: 05-2004
Rating: N/A
Votes: 0 (Vote!) | | Posted on Sunday, December 21, 2008 - 03:33 pm: |
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Scribe:
Moline Ill, the stomping ground of the PGA's John Deere Classic (there home office), Riverboat gambling, musicians Louie Belsom and Bix Biederbeck, Boxing's Michael "Second To" Nunn, football's Rodger Craig, track's Edwin Moses, Basketball's Don Nelson, actor Kingfish (Amos & Andy), Tiger Wood's first defeat when leading going into the final round, The I Wireless Center; home of the Calgery Flames Hockey affiliate, the place were Cary Grant died, the Mississippi River, The home of the best ribs in the world; Jim's Rib Haven, Whitey's Ice Cream and....
AND, a place The Urban Scribe spent 3 days. |
Hen81
Veteran Poster
Username: Hen81
Post Number: 154
Registered: 09-2007
Rating: N/A
Votes: 0 (Vote!) | | Posted on Sunday, December 21, 2008 - 03:53 pm: |
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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 |
Cynique
"Cyniquian" Level Poster
Username: Cynique
Post Number: 13204
Registered: 01-2004
Rating: N/A
Votes: 0 (Vote!) | | Posted on Sunday, December 21, 2008 - 04:28 pm: |
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The Publishing business as manifested in the Fourth Estate has really taken a hit from which it might not rebound. Major newspapers all over the country are in trouble and are either going out of business or cutting costs and laying off workers because circulation is way down and, as a result, so is ad revenue. Dailies have not fared so well in trying to compete with the Internet and TV as news sources. Bound and printed books may be able to survive the electronic age but those in the know say that the future for newsprint looks bleak; a sad demise for a time-honored American tradition.  |
Troy
AALBC .com Platinum Poster
Username: Troy
Post Number: 1631
Registered: 01-2004
Rating: N/A
Votes: 0 (Vote!) | | Posted on Sunday, December 21, 2008 - 04:41 pm: |
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Urban_scribe, I'll have to print and read the articles off line and get back to you. But having quickly scanned them I can tell I probably will not find what I was looking from you. Basically the articles seem to present a wide variety of stats. The only real data I was looking for was perhaps a comparison of ‘08’s net incomes or revenues with prior year to support the statement "FACT: 2008 was one of the worst fiscal years in publishing history." In reality, ‘08 is far from one of the worst years in publishing. If you like you can simply look at the number of new books published his year and compare that to prior years.
Be careful looking at individual company share prices when assessing an industry. Sure Amazon’s share price may be down, but they are seeing records sales if I recall. B&N share price is down, but Amazon was cleaning B&N’s clock before this economic shock.
Also you have to look at the underlying company for large multinationals like Lagardere and CBS (whose Simon and Shuster, If memory serves, are not doing that badly year over year).
Again, if you tell me that an individual business with an antiquated model is hurting in a bad economy, I can not take that to mean that the overall industry is hurting or no longer viable.
Sure the economy is bad, indications are that it will get worse. However I believe as Hen81 pointed out that the publishing industry is not working optimally. The economic crisis has simply exacerbated an existing problem. As I said I think these conditions open up more opportunities for smart publishers – not less. But even the smart ones have to work hard…
A_womon, not all businesses are suffering. ’08 will be AALBC.com’s best year. We already know as ad sales for print publications continue to decline there is more demand for on online advertising, which is more economical given the $ spend per consumer touched. In fact I have to do less selling as ad network like Google generate move revenue per impression that in year’s past.
In addition there are more people self publishing and as a result more opportunities for providing services to authors. Obviously a bad economy puts downward pressure on book prices, so online book sales, where book are less expensive goes up.
Even the initially maligned fee based book review is seeing greater demand. Kirkus has raised their fees ove the years and as this articles suggests that other entities will enter this business.
There are many business that can do well in this type of economy and I believe publishing is one of them. |
Urban_scribe
AALBC .com Platinum Poster
Username: Urban_scribe
Post Number: 712
Registered: 05-2006
Rating: N/A
Votes: 0 (Vote!) | | Posted on Sunday, December 21, 2008 - 06:22 pm: |
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Basically the articles seem to present a wide variety of stats. The only real data I was looking for was perhaps a comparison of ‘08’s net incomes or revenues with prior year to support the statement "FACT: 2008 was one of the worst fiscal years in publishing history." In reality, ‘08 is far from one of the worst years in publishing. If you like you can simply look at the number of new books published his year and compare that to prior years.
The statement is supported: comparisons are made to the previous year's revenue of the various publishing entities, and the various articles, stats, market value, layoffs, downsizings, salary caps, pension freezes, company-matched 401K contribution cutbacks, industry analysts, financial analysts, and direct quotes from publishing's "top dogs" back it.
Publishers may have printed more books this year than last, but they sold significantly less books this year than last and, as a result, the publishing industry collectively lost hundreds of millions in revenue in 2008. If that doesn't make this year one of the worst fiscal years in publishing history, then I don't know what does; and I didn't say so - the industry said so. And that theme is repeated and reiterated, and there in black and white for all to see.
As usual, Troy, you have a way of attributing statements to me like I pulled them out of nowhere. When I back up my statements with irrefutable FACTS coming straight from the horse's mouth, as it were, you still try to find a way to dismiss hard evidence that I've presented with strawman arguments. I'm beginning to think you just like disagreeing with me.
Anyhowway, the articles are there, the stats are there, the comparisons are there, the quotes are there, the sources are there - make of it what you will. If what I've presented isn't what you're looking for, then I suggest you do your own research in the future.
Alternatively, you can do what I do: invest roughly $2500/year in various memberships and periodicals that cater specifically to the publishing industry. Many of such contain listings of publishing blogs (accessible to anyone on the 'net) that the industry actually bothers to read, and emails where you can sign-up for free and low cost newsletters (that the industry actually bothers to read) and have them delivered daily, weekly, bi-weekly or monthly to your inbox. The periodicals themselves provide a "heads-up," months in advance, of industry trends, warning signs, book deals, book to film options, inside scoops, articles you won't find anywhere else penned by the who's who of publishing, invites to various members-only conferences, seminars, round-table discussions, cocktail parties, dinners, and fund raisers and book drives, member discounts on numerous services such as bound galleys, print ads, promotional materials, BEA booth rentals, etc.
Must be nice for you to sit back and claim "’08 will be AALBC.com’s best year" when unlike the aforementioned publishing giants, your company's financial health isn't a matter of public record. |
Troy
AALBC .com Platinum Poster
Username: Troy
Post Number: 1634
Registered: 01-2004
Rating:
Votes: 2 (Vote!) | | Posted on Sunday, December 21, 2008 - 07:25 pm: |
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OK Urban_scribe you state as "Fact" that 2008 is "one of the worst fiscal years in publishing". I STRONGLY disagree. Not with the "facts" as you have presented them, but with your interpretation of those facts.
I guess we will have to leave it at that.
If you are implying that I'm lying about AALBC.com's revenues for the year 2008 compared to prior years there is nothing I can do about that. You can believe what you want to believe; as you have already demonstrated. |
Mitchellb999
Newbie Poster
Username: Mitchellb999
Post Number: 3
Registered: 09-2008
Rating: N/A
Votes: 0 (Vote!) | | Posted on Monday, January 05, 2009 - 06:19 pm: |
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Check out www.fuhrersheart.com. This is an example of high quality fiction with a strategically targeted audience. |
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