Bargain Buyers BEA-Bound
Lucinda Dyer -- 5/22/00
Remainders, overstocks, special promotions--players in this
publishing niche are looking forward to a busy convention
For all those who think of the "remainder" as a recent addition to the world of publishing, a short historical note: as long ago as 1705, no less than the venerable Oxford University Press was scrambling to off-load its surplus stock of Homer and Xenophon to local auctioneers. By 1713, reports Oxford University Press archivist Dr. Martin Maw, the house had decided it was time to clear the backlog from its warehouse. It may not have been the world's first remainder sale, but it did allow OUP to unburden itself of such evidently unwise investments as Robert Morrison's Plantarum Historica Universalis Oxoniensis. Prices ranged from a sixpence (for Verfes on the Duke of Gloucefster) to two pounds, five shillings for Clarendon's History of the Rebellion & Civil Wars in England. The University, says Maw, "had over-estimated its market. Minimum print runs for the time were 500, but it was often difficult to shift a third of that. Oxford wisdom at the time blamed the gentry for not reading and the clergy for not buying."
As the saying g s, the more things change.... But for bargain book companies and for BEA, the times have changed big time--and for the better.
Location, Location, Location
The big news for bargain book exhibitors at last year's BEA was their liberation from exile in convention hall Siberia and relocation to a more prominent site. While some companies--Book Sales Inc. and World Publications--continue to maintain booths on their own, most report that exhibitors are positive about joining forces in a centralized location.
Brad Jonas, co-founder of CIROBE (Chicago International Remainder and Overstock Exposition) and president of Powell's Wholesale, was one of a group of bargain book exhibitors who successfully lobbied for the new location: "We felt that by working together, we would increase our chances of getting a better placement." He also credits BEA's current management with readily understanding how bargain books fit into the whole framework of bookselling. Greg Topalian, group sales director for BEA, admits that one of the negatives of the show in the past was the poor location given to bargain book exhibitors. He made a point early on to visit CIROBE and to meet with Jonas and others to get their input about what could be done to increase their participation at BEA. The results have more than borne out his efforts, as Topalian reports that the new location has significantly increased the number of bargain book exhibitors planning to attend the show.
As for the exhibitors, many would echo Tamara Stock, director of sales and warehouse fulfillment for Daedalus: "We're thrilled to be out from behind the pillars. We're very happy with our positioning and feel that Reed [the show's management] has been very responsive to our concerns." Bargain Book Wholesale's sales manager, Debbie Smith, a former bargain book buyer for Publishers Warehouse, remembers spending her days at past BEAs " running from hall to hall for appointments. I think that the new location is a pleasure for the buyers."
But not everyone agrees with this rosy picture. Albert Haug, owner of Book Club of America, feels that bargain book suppliers "are still being treated like stepchildren. I understand who we are compared to a Simon & Schuster or HarperCollins and I know there is only a limited amount of space. The location is certainly better than before, but still not in a prime location. But our buyers know where to look for us, so traffic-wise we still get the people who are looking for our type of book."
The Role of Independents
One benefit of grouping bargain book suppliers together has been increased traffic from independent booksellers. But even this greater visibility has not solved one continuing problem for bargain book exhibitors regarding independents. "Many independents," says Jonas, "don't understand the place of bargain books in the industry. Bargain books are not just an afterthought--they're fundamental to a bookseller's success." Bargain Book Wholesale owner Henry Vander Goot couldn't agree more. "Too often, independents still think of bargain books as the trash you'd see on the sidewalk outside a five-and-dime store."
Debbie Smith agrees that the central location is attracting independents who might once have passed by the section. She, like Jonas, is still surprised at how many booksellers still don't understand the concept of bargain books. "The profit margins are so much better than on bestsellers," she explains. "That d sn't mean stores don't need the front-line books, but the addition of bargain books, I think, would help many of the struggling independent bookstores."
Lynn Bond, president and publisher of Random House Value Publishing, proposes an inventive solution to this lack of knowledge--a panel on bargain books during BEA. "Even at Random House, our publishing program is somewhat of a well-kept secret. I think a panel would go a long way toward helping booksellers understand what bargain books, remainders and reprints can mean, profitability-wise, to their stores."
What's Playing This Year
From discounts to cutting-edge technology, this year's bargain book exhibitors are taking full advantage of their new higher profile. World Publications is going high-tech in its booth, which will cover 1,200 square feet and house a staff of 15. "This should be our biggest order-writing BEA in 14 years," says v-p Gail Press. But with 5,000-6,000 titles on display, the World booth could easily become an intimidating maze for customers. The solution? Handheld wireless scanners. Buyers sign in at the reception area and pick up their scanner. When they see a title they want to order, they simply scan the book's bar code and enter the number of copies they want. When they're finished, they return the scanner to the reception area and get an immediate printout of their order. "Customers really love it, "says Press. "We've taken the bull by the horns when it comes to technology." World also has an old-fashioned enticement to buyers--70% off on a special selection of titles.
Bond at Random House Value says she's already heard the buzz that this BEA will be even better than last for bargain book exhibitors. "Our customers are booking their appointments early," she tells PW, "and our international customers are already calling to schedule time with us." And for those international buyers, Bond is bringing along a special addition to her staff of nine, a young intern from Germany. "She's been to Frankfurt and is very excited about seeing the American version." Bond adds that Random House Value will offer a new selection of closeout inventory as well as backlist remainders at 80% off.
Last year was Bargain Book Wholesale's debut at BEA. While Smith rates the company's first appearance as a success, she feels it was limited by the confines of its 10'x10' booth. This year, the company has doubled its space and Smith looks forward to "an even better show for us." Because Bargain Book Wholesale is in the unusual position of being both a retailer (20 Bargain Books stores in Michigan, Illinois and Indiana) and a wholesaler, owner Vander Goot promises "sharp prices" to all those coming by the booth. "We generate our own surplus titles from our retail stores, so store owners can make a significant profit--150%-200%--on our titles."
Daedalus is offering a 65% discount on all titles which they purchased before 1999--more than 500 in all. The company is also emphasizing its CD and cassette remainders, and, says Stock, "a great bunch of art books."
Federal Street Press, an 18-month old division of Merriam-Webster, publishes books created by those editors. Its line now numbers 13 books, with four scheduled for this fall. For Federal Street's second BEA, publisher Deborah Hastings promises a free copy of Webster's New Explorer Dictionary and Thesaurus with every order placed during the show.
Courage Promotional Books, a division of Running Press, will be featuring Charles Dickens's Christmas Carol: A Young Reader's Edition of the Classic Holiday Tale. Due in the fall and illustrated by Christian Birmingham (whose work will be on display at the booth), the title elicits high praise from Running Press publisher Buz Teacher, who cites Birmingham's work as "the most impressive children's book illustrations I have ever seen."
Book Club of America, which has distribution agreements with Simon & Schuster, Macmillan and Rodale Press, will introduce, says Haug, "the very latest remainder lists--books from mid-May. The key to this business is availability of new product, and with these three publishers, we have access to literally millions of books."
At least one bargain book player promises a unique BEA "offer." Mel Shapiro, president and CEO of Book Sales Inc., quips that, for any buyers coming by his booth during the noon hour, "I'm going to invite everybody to Jeff Press's [World Publishing] booth for lunch--and let him pay."
Changes vs. the Status Quo
Now that the location problem has begun to be addressed, what other improvements would bargain book exhibitors like to see? Many believe that BEA should be more inclusive. In Brad Jonas's words, "We need to spread the net and try to bring in nontraditional booksellers." Stock at Daedalus would like to see a greater effort made to attract international buyers, as well as those from used bookstores and specialty stores that deal with everything from gourmet foods to sporting goods. Random House Value's Bond, citing her recent positive experiences placing books with outlets from Office Depot to Vons Supermarkets, agrees that the time to right to pursue sales to these nontraditional markets--"this is an area that's really starting to grow and explode."
BEA's Topalian couldn't be happier to join in the pursuit of new business; he tells PW that BEA is "actively recruiting new buyers." He mentions Walmart and Costco as two new attendees who have just begun to do a lot of business--not just in bargain books but with general publishers as well. Topalian sees the relationship between BEA and bargain books as "growing positively forward. We're very willing to listen to our customers and hear what they need from us."
"I'm very satisfied with what's been happening at BEA," says Vander Goot, "with the exception of all the hassles of working in a unionized show." Teacher at Running Press sees nothing in need of alteration, and notes that Running Press and Courage Promotional Books attend up to 30 trade shows a year, with BEA being one of their top three. "Why should it be different ?"asks Shapiro of Book Sales, "I like it the way it is."
That Other Bargain Book Show
Bargain book companies, of course, are in the fortunate position of having not one but two major trade shows each year--BEA in the spring and CIROBE in the fall. But is this an embarrassment of riches or d s one show outshine the other when it comes to sales?
Not surprisingly, CIROBE co-founder Jonas finds it impossible to pick a favorite. "It's not one or the other. If bargain books is a year-round thing--which it is--a buyer can't go to one and not the other. CIROBE was created to be in the other part of the calendar year. The best stuff sells through quickly, and with both shows, buyers get the advantage of seeing the freshest stock--and that levels the playing field for everyone."
Stock agrees, believing that a strong program of bargain sales year-round is the best way to achieve maximum profit and business. "BEA is important to us because it's an opportunity to be seen--and to see others--in the whole business of publishing. We connect to the whole community there, not just other remainder companies and customers. CIROBE is positioned to give buyers another opportunity to buy. We think smart book buyers would find both shows equally important." She also observes that, while Daedalus writes more orders at CIROBE, that show "certainly costs a lot more for us to do than BEA."
The close proximity of buyer and seller at CIROBE is a major attraction for Book Club of America's Haug. "We're usually at the Hilton, living with the buyers under one roof--you can spend quality time and socialize. Buyers who come, come to spend money. It's usually in the middle of a strong selling season, so the mood is upbeat." For Jeff Press of World Publications, "BEA is great but CIROBE is our favorite show--it's smaller than BEA and easier to work. Everyone's a customer or friend, and every buyer is there to write orders." Random House Value's Bond also comments on CIROBE's intimate nature: "It's almost like a regional ABA. CIROBE is always very collegial."
But Bargain Book Wholesale's Vander Goot finds the two shows "not comparable. They have quite different clientele." Steven Wilson, CEO of Kudzu Book Traders, agrees. "In my opinion, you cannot compare BEA and CIROBE because of the publisher participation at BEA. They are truly different venues and equally important." It's the bottom line that makes CIROBE the show of choice for Shapiro at Book Sales. "We do more business at CIROBE and it costs us less, and those are two goals we always work toward."
Courage Promotional Books has been attending CIROBE since its inaugural year. While publisher Don McGee cites both BEA and CIROBE as key dates on the company's calendar, he d s find that at CIROBE, "people come to buy and find special bargains. And we ask a lot of questions about what we can publish to meet booksellers' needs. At CIROBE, we all know each other and don't view one another as competitors. We each have our niche and try to work together." He finds BEA important for "putting a face with a name" and cites the opportunity to meet with smaller independents that aren't called on by Courage's commissioned reps as particularly important.
For Teacher at Running Press, CIROBE brings back memories of ABAs held in the Shoreham Hotel in Washington, D.C. His parents owned George Friends Book Shop in the capital and as a child he regularly attended ABA in the hotel's ballrooms. "When I first went to CIROBE, it reminded me of those shows at the Shoreham. They were real table-top order-writing shows, just like CIROBE is now."
Playing Out the Year 2000
So what's ahead for bargain books? Daedalus's Stock sees two immediate challenges confronting remainder, bargain and reprint companies. "First, the shrinking of our primary market, which has always been independent booksellers. So we are making a greater effort to sell to nontraditional markets and booksellers who don't carry bargain books. The second challenge is the consolidation of publishers, which has seriously affected the flow of new product." Daedalus is responding, she explains, by installing "a very sophisticated database that will allow us to develop a really great business-to-business Web site." Their goal for the site, due to be up in spring 2001, is to have the "browsability" of a print catalogue with the searchability of Internet technology.
Stock also notes the challenges presented by the nature of the bargain books. "This is an entrepreneurial business, you can't have a budget because you never know what you're going to be offered in a month, not to mention a year. You never know in a month if 10 new titles will be offered or 10,000; you never know which of your bids will be accepted."
In contrast, Book Club of America is currently in the third year of a five-year strategy. According to Haug, "You have to have a long-term plan that's fine-tuned every year, that's an absolute necessity. Our three distribution agreements do make it easier to plan ahead, but to deal with companies like that you have to go to them with strong internal structures and a strong balance sheet in place." The company's focus, he continues, "will be on improving service to our distribution clients. We grew 52% in 1999 over 1998. The first four months of 2000, we grew 23%. We account for this in large part due to the strong distribution agreement with Simon & Schuster, Rodale and Macmillan." Haug also notes the importance of one simple business practice: "We pay our invoices on time and that's key in our business."
World Publications' acquisition this March of General Publishing will, says Jeff Press, "keep things extra busy for the balance of 2000. We're sorting out inventory and rights issues for 141 titles. We hope to have at least 20 updated and back in print within the year." World will also be putting a high priority on more efficient distribution, a partnership with new technology and some good common sense. "It's often not what you sell but what you don't sell," Press explains. "Companies who will survive in this business won't look for dominance, they'll just focus on taking care of business. You see so many companies go out of business after telling PW how well they're doing. Our five-year plan is to focus on what we do best--go with the flow, you can't force it."
Random House Value has expanded its commissioned sales force and looks forward to a banner year for its Modern Classics and Cinema Classics imprints. To celebrate the 25th anniversary of the publication of Alex Haley's Roots, says Bond, the company will have a special edition--accompanied by a major marketing push--ready for stores in the fall. "Roots is such a significant book," she says, "and for me it's both personally and professionally fulfilling to be able to reintroduce it to a new generation." Modern Classics will also reissue this fall a series of Richard Scarry's children's books and Helen Steiner Rice's Christmas Blessing. Cinema Classics kicks off the summer with reissues of Planet of the Apes and Anatomy of a Murder.
Federal Street's Hastings feels the "challenge is to stay within the limited-focus niche we have staked out. We anticipate being a backlist publisher, not a publisher with hundreds of titles. We'll focus on titles that will be necessary year after year."
Shapiro of Book Sales takes a pragmatic approach to the future. "This is a simple business. We buy or produce a book, and then we try to sell it. This is not a technology business; buying and selling books hasn't changed in years. You just have to get out there and hustle as fast as you can." Words to live by--now and perhaps even 300 years ago.
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