The inmates are trying to run the asylum again
Yep, that’s right. The inmates have managed to get out of their cells and are running around loose. Now, most days, it is pretty entertaining to watch. After all, they usually are either pointing at the sky and screaming about how the aliens are coming and taking over the world, or they are burying their heads in the sand and doing their best to ignore the changes needed to be made in order to survive. But today, well, all I can do is shake my head and wonder how long this current farce will run before the final curtain falls on it.
Let’s start with what has to be one of the most mind-boggling pieces I’ve seen in a long while. I have to give a hat-tip to one of our readers for pointing me to this link. Think about this. Your local bookstore — and not a chain store — manages to get an in-store signing set up with an author who has a book coming out from a major publisher. The store does a magnificent job promoting the event and manages to pre-sell 450 copies of the book by mega-best selling author. (These copies are to be autographed by the author) So the store calls the publisher and places the order.
Does the publisher jump up and down and offer to send the books out post-haste? Hell no. They’ll only ship the store 200 copies. Doesn’t matter that the books are pre-sold. Doesn’t matter that the store will pay up-front for the books. The publisher isn’t going to to budge. It doesn’t matter that this will be a PR debacle for the store, the author or, duh, for the publisher.
Well, here is where I tip my hat to the store and to the local Target. The store owner went down the street, talked to the powers that be at Target, and got the books needed to finish filling the pre-orders (300). Target even sold them to the owner at a discount. Epic win for both the indie store and Target and massive epic fail for the publisher.
Now, what reasonable business would turn down a pre-paid order of 450 units of a $30 item? I can’t think of any, especially not one that is suffering slumping sales. But the publisher did. It was worried about returns. The books were pre-paid so there wouldn’t have been any returns. But that little bit of information mattered not. Nor did the fact that the author, who is described as a “major best seller”, would not be pleased to find she had been cut out of hundreds of sales by her own publisher.
So, you have to ask yourself how often this sort of idiocy occurs and how many sales publishers cost themselves and their authors because they can’t see the forest for the trees?
And then there is the spin as publishers try to convince themselves that they are making up lost ground. An example is this article about Penguin’s so-called profits last year. According to figures released by Penguin, total sales rose 1%. Sales, not profits. As a counterpoint, operating profit fell 12%. Add to that the fact Penguin expects e-book sales to slow this year and you have to wonder how they see these figures as being anything but troublesome. Yet, we are told that the powers that be feel Penguin came out of this “pretty good”.
Maybe I am having trouble seeing the forest for the trees, but a 12% decrease in operating profits coupled with a forecasted slow down in e-book sales (the one segment of the business that has continued to grow by leaps and bounds) would be something I’d be worried about. But then, I’ve never been a corporate cheerleader.
And then there are the indie booksellers who have filed a class action lawsuit against Amazon and the Big Six over DRM. My first issue with this is that there are only three plaintiffs to the suit, so I’m not sure they will qualify as a “class”. But that will be up to the court to decide.
My biggest issue is that this suit is only aimed at Amazon and none of the other online e-book retailers — like Barnes & Noble, iBooks/iTunes, Kobo, etc. If these three booksellers are really worried that applying DRM to e-books restricts the sale of e-books, shouldn’t these other retailers be included as defendants? Oh, wait, it’s only Amazon because the DRM applied means only the kindle line of products can read the titles.
But wait, aren’t the vast majority of these titles also available in DRM’d epub versions through BN.com, etc? I guess that doesn’t count. We’re just supposed to turn away from that little bit of information because it doesn’t fit the scenario that these booksellers want us to believe.
However, even if their allegations are true, so what? Aren’t companies allowed to produce products and sell them wherever they want? Sure, there are limitations like not violating exclusivity agreements — oh, wait, we aren’t supposed to think about those either because that would fly in the face of what the plaintiffs allege.
Don’t get me wrong. I feel for indie booksellers. But this isn’t the way for them to win back patrons. Worse, if this case does go to court and they lose, they will more than likely liable for court costs, not just for themselves but for the six publishers and Amazon. Do you really think the retailers will be able to cover hundreds of thousands of dollars in fees and costs and stay in business? Of course, that will be Amazon’s fault too — at least in the eyes of the haters.
Instead of stomping their feet and holding their breath like a couple of pouty kids, these booksellers need to be looking forward. How can they work directly with publishers or authors to sell e-books? What are they doing to promote local authors? More importantly, sit back and wait and see what happens in the DoJ’s price fixing case against Apple (in case you’ve missed it, the five publishers have all settled). There will be changes coming from that, not only for Apple and the publishers but, in all likelihood, Amazon as well. Take a lesson from the bookseller mentioned at the top of this post. Instead of whining and whinging, that bookseller went out and did something to turn what could have been a public relations nightmare and a big hit against the store into a positive.