What’s up with Christian Retail?

Monday, May 10th, 2010

Twice in the last 30 days I have been interviewed about the “state of the industry.” The journalist’s questions were insightful and thought I would share some of them with you. My answers have been expanded beyond the original ones since I have more space to work with here.

1. What do you believe to be the most important trend in Christian publishing and why?

This can be a complex question depending on which part of publishing being discussed. The obvious answer is the digital revolution. While e-book sales are still only a tiny percentage of the whole, the foundations being laid today will have long term implications.

In fiction I have been encouraged by the continued diversity in publisher’s acquisitions. While “romance” is king, a great story can still get a chance.

In non-fiction there has been a concerted push by publishers to acquire only those authors with a built-in audience of some sort. This is especially hard for the debut writers who have enormous talent and insight but have yet to construct a personal following. I even had one editor at a publishing house write me the following after I groused about a rejection letter that didn’t square with what I knew about that publisher:

“…it seems we no longer trust the old methods of reading the market, trying to get ahead of the curve on reader tastes and needs, and so forth. Now we have to prove a book’s success in advance, on paper, using mathematics.”

That is a stunning statement but in a sense is not news. If writers have not come to grips with the fact that publishing is a business, then now is the time to do so. Never forget that without a “bottom line” (i.e. profit) the publisher goes away (or they downsize) and everyone gets hurt.

Some will read that and despair. Others will shrug and say, “What’s new?” I think it is exciting that the industry is becoming that much more professional and the demands on excellence, quality, and “big ideas” will only help create better and more successful books.

2. When were you last in a Christian store and why?

In February, while traveling on business, I visited a local Christian store to observe their layout, featured products, and whether our client’s books were in stock. This particular store is part of a Christian retail chain with multiple locations.

The results were mixed. A front-of-store cardboard display was empty of product which was a good for store sales – meaning they had sold out, but signaled to me that their buyer was much too conservative (“stack ‘em high and watch ‘em fly” vs. “keep it low and they won’t go”). Since I did not own that item they missed out on selling one to me.

3. What can Christian stores do to better differentiate themselves from other channels selling Christian products?

Remember that I was in the Christian bookstore business for over a decade and our store received the National Store of the Year award from CBA (The Christian Booksellers Association) in 1989. So while my personal in-store experience is now nearly two decades out of date, I still understand many of the nuances of Christian retail.

My answer to the above question is “Personal service and community building.” The competition isn’t always the online channels. Sometimes it is simply those outlets that choose the top 10 titles to display. Thus product knowledge and personal relationships are the key to customer retention.

We had a Christian store in our area where our family shopped because of a long term friendship we had with its owner. Unfortunately, after 35 years it closed its doors after the city decided to build light rail in front of her location and made it nearly impossible to visit. We really don’t have an alternate store within a reasonable driving distance, which is disappointing in a city the size of Phoenix.

The CBA store is still a powerful customer for the Christian publishing community. But as a whole is losing “market share.” This market share has been shaved by online retailing, big box retailing that siphons off bestsellers, and a general malaise for the specialty retailer. The gift side of the CBA store is where most stores will find their survival because it does not have the competition from online stores. I hear many who are highly critical of the non-book section of the Christian store. Let’s stop that, okay? Let’s consider changing the view of the Christian bookstore to one of a Christian “supply” store or, if you must, a Christian “boutique.” Wherever there are vital and growing churches there are vital and growing Christian stores.

At the risk of sounding out of date I remember that the Christian stores I managed, back in the 80s, served nearly 500 church accounts. Once we counted the number of student curriculum packets we sold in one quarter and were startled to find that we sold 10,000 pieces of student material intended for Sunday School education for children. So while we had some plaques and jewelry and cards and posters and knick-knacks in the store we also had curriculum, at least 3,000 book titles, and hundreds of Bibles.

If you can, support your local Christian store, they serve a vital role as the Supply Sergeants of the Kingdom.

4. Do you own an e-book reader and if so what kind and what are you currently reading on it?

I have owned the Kindle since it was first released (currently using the Kindle 2). I last read a client’s manuscript on it while traveling (uploaded from my computer to the Kindle). In addition I also re-read Phil Vischer’s Me, Myself, and Bob: A True Story after hearing him speak on the topic at a recent conference.

I have resisted the lure of the iPad so far. I plan to wait for the second version to see if some of the bugs get worked out. Unfortunately the “swiping” motion on the screen gives me a bit of vertigo. I find that standing in the Apple Store playing with it gives me a slight headache. So I may never be able to use one comfortably.

Tags: Bookselling, Editors, Proposals, Publishing, Rejection, Writing
Posted in Publishing | 8 Comments »

HarperStudio is History

Monday, April 5th, 2010

Back on March 17 I blogged about the changes at HarperStudio and asked if this could mean that division would close down. Today it was announced that it has come to pass, the division is no more.

HarperStudio had made big news by setting up a low advance model in exchange for high royalties. It was termed a “profit sharing” model. (of course define “profit” first… ) Plus they sold their books on a non-returnable basis to the stores, both online and brick & mortar.

It was a highly creative idea and caused quite a stir, especially when there was talk of a 50/50 profit split.

My questions are these. Does this mean the end to the experiment of “profit sharing” in publishing?Also…

Did the model fail to produce the necessary revenue or did the acquisitions team fail to select the right titles?

At the risk of being a hindsight prophet, I think it was the latter. Don’t get me wrong. The books themselves are quality titles for the most part, but none of them became “blockbusters.” The model might work if the book generates enough revenue. But the combination of a modest list, with no break out bestsellers, and the fact that the stores could not return slow moving titles probably contributed to conservative buying patterns and kept the big box retailers from “stacking ‘em high.”

What do you think?

HarperStudio, the unusual imprint founded two years ago by Bob Miller, is being shut down and its books and staff will land at other HarperCollins imprints. Miller left Harper last month to become group publisher at Workman (Shelf Awareness, March 16, 2010).

The final titles to be published by HarperStudio will be the summer 2010 list. All fall titles and titles scheduled to be published thereafter will be published by other HarperCollins imprints. In a memo to employees, Michael Morrison, president and publisher of U.S. general books and Canada, said that Harper “will be contacting agents and authors to discuss the best editors and imprints for” its fall and other future titles. “All of our imprints are happy to discuss profit sharing scenarios on a book by book basis.”

Debbie Stier, associate publisher of HarperStudio and director of digital marketing for HarperCollins, continues as director of digital marketing and continues to acquire books for all imprints as editor-at-large. Kathryn Ratcliffe-Lee continues to report to Stier.

Senior editor Julia Cheiffetz is moving to the Harper imprint. Assistant editor Katie Salisbury continues to report to Cheiffetz.

Jessica Wiener continues as director of marketing.

In its brief life, HarperStudio published mainly nonfiction, offered low advances with profit-sharing, tried to sell titles on a nonreturnable basis and signed many authors who were well-known in other fields or were writers who wanted to try projects that differed from their usual ones.

Tags: Bookselling, Publishing
Posted in Publishing | 4 Comments »

Is Print Dead?

Thursday, January 21st, 2010

There is an unsettling myth being perpetuated about the death of print books. The news of print’s demise is simply not true. It sounds a bit like Mark Twain having to write a note to a reporter saying “The report of my death was an exaggeration.”

To fully explain I need to start with the music industry.
The impression is that all sales are now digital. And iTunes has killed the physical CD. This is not true.

Approximately 12 songs fit on a CD. And since individual songs can be downloaded, the only way to compare physical CD sales with download sales is to divide the number of songs downloaded by 12. That way you have a one-to-one comparison.

With that assumption in place, Apple is the #1 retailer of CDs in America. No surprise. The surprise is that they only comprise 25% of sales. Walmart is #2 at 14% and Best Buy is #3 (my guess is that Amazon.com is #4 but wasn’t mentioned in the article).

Why is that surprising? Because that means 75% of all sales are still “hard copy.” Physical CDs. It is significant that Apple’s share has increased as a percentage of all sales from 21% in 2008, up from 14% in 2007. But it still means the physical product is outselling the digital by 3 to 1. (In total dollars, across all forms of music, digital downloads comprise only 35% of all music sales.)

Turn that same conversation to the book industry. The Amazon Kindle has impact primarily because they were first and did create a pretty cool device (I bought one the week it came out in Fall 2007 and upgraded in 2008). The Barnes & Noble Nook is shipping with reports of modest success. The Sony Reader has its followers. Plastic Logic just announced their cool tablet sized reader. And everyone is wondering what Apple will announce in the near(?) future regarding their answer to the “hardware” question.  But despite this we really don’t have an “iPod” equivalent. Mike Hyatt, CEO of Thomas Nelson Publishers, wrote in 2005 that we are “one device away from a digital revolution.” In my opinion we are still waiting for that device. The iPhone is not the answer for most people. The screen is simply too small. And for someone like myself who reads rather fast it can be very annoying…

Don’t get me wrong. My head isn’t buried in the sand. That revolution is coming and some would say it is already here. But the “tipping point” has yet to occur.

Amazon had a lot of fun announcing that they sold more digital books than physical books on Christmas Day 2009. Think about it. On Christmas Day recipients of the Kindle opened their gift and downloaded stuff while playing with their new toy. But who else would be shopping on Christmas Day? No one. So while it made a fun press release it really isn’t as astounding as it first sounded.

I see the royalty statements. I know exactly how many digital versions of my client’s books are being sold. And while there are a lot more sold than there were two years ago (of course there would be) the volume is still less than 1% of the print version sold. LESS THAN ONE PERCENT.

So let’s do some math. Let’s say that e-books have 100% growth in the next year. That would mean they would comprise 2% of all sales. Then let’s say it grows by 100% again, to 4%. We have to keep doubling the number for 4 years before we get to a little less than 20% of all print sales. But that still means that 80% of all sales are still hard copy. Eighty percent.

Certainly this revolution could happen and is quite likely. The implications are huge, especially for the newspaper and magazine community. But it does not mean that print books are dead.

It is even possible that in one generation (twenty years) that the conversion will take place..at least in some form or fashion. If the e-book reader cost drops to under $100. If the device is in every home, on each family member’s nightstand. If the younger generation’s textbooks are placed into e-book format and that generation becomes used to it. A lot of “ifs.”

It is a very exciting time to be in the publishing industry. I almost get giddy when thinking about the possibilities.

If you want to read someone who will challenge every assumption you’ve ever made about “curling up” with your favorite book, get a copy of Print is Dead by Jeff Gomez. Get a group of friends together to talk about his conclusions, I guarantee a rousing discussion. If you want to learn how the music industry was ambushed by technology read Appetite for Self-Destruction: The Spectacular Crash of the Record Industry in the Digital Age by Steve Knopper.

All I’m trying to say is that we need to stop buying into the myth that books are dead. It simply is not true. We are being influenced by the flood of media attention on the “new” and the “cool” and not looking past the sound bite. It is like relatives or friends writing to say “I saw that there was a flood in Phoenix…are you okay?” Yes. It flooded…in an area with a river wash and someone tried to drive thru it and got stuck. That picture hit the national news. The media gave the impression that the entire city was under water with their breathless coverage. So when you read that publishers are going under, and print books are dinosaurs, and all authors need to rethink everything…take a deep breath. It  is different. It is a time of careful consideration. No publisher wants a repeat of what happened to the record industry. But it is not as bad as you think.

In the end I implore you not to be one who helps perpetuate the myths and misinformation.

Tags: Bookselling, Digital Books, Publishing
Posted in Publishing | 19 Comments »

2009 ICRS Observations

Saturday, July 18th, 2009

Like many going into the 2009 ICRS convention (aka CBA or the Christian Booksellers Association convention) I was wondering what would be found. It was great to see that instead of the projected doom and gloom there was light and hope. (Yes, that is Bob the Tomato and Larry the Cucumber in the photo to the left – courtesy of Christian Retailing Magazine.) A few observations:

1) The total convention exhibit floor was about 30% smaller than in past years and the middle section, housing CBA’s events and displays was HUGE. In fact you could walk through the entire book section very rapidly for the first time in years. Everything seemed condensed.

2) The net effect of the smaller sales floor was that you felt the crowds. There was noise, energy, and excitement in the air. This was a major change over previous years where it always felt so quiet.

3) The reason for the reduced exhibit floor is simple. The publishers reduced the size of their booths. Many cut their space in half. Others simply did not exhibit at all (Thomas Nelson, Steeple Hill, NavPress, and Waterbrook were not to be found).  I am not one to make a big deal of the decision to eliminate an exhibit. As a cost cutting move they saved a bundle. They did miss out on some media opportunities (an editor for the Associated Press was working the floor for a story on Christian fiction) and some “hallway” conversations. But when a publisher can spend $100,000 or more to attend the budget restraints are understandable. (A simple 10′ x 10′ booth can cost well over $2,000 just for the space. Then you have to get there, ship the product, create a snazzy booth design, etc.)

4) Fewer publishers had a separate convention suite for meetings. Since those suites can cost more than $10,000+ for the event it was an understandable change. It made finding private places for a meeting a little more difficult, but we all managed.

5) Monday, the first actual day of ICRS, was very busy on the convention floor. The lines for book signings were long and exciting. But I made an interesting observation. I seemed to recognize almost everyone who was walking around. That meant two things:

a) I’m old. After 28 years in the business you get to know a lot of people.
b) It meant that a large number of the attendees were authors or exhibitors…NOT stores.

In fact the word-on-the-street was that there were only 300 stores registered. But I have no way to verify that number. Plus one registration may represent a half dozen or more regional chain stores, and the Family Christian Store chain has over 300 locations. This further cements the reality that the convention is not the place for order taking. Instead it is a place for building bridges with customers, clients, and eventually, consumers.

Bottom line is that it felt busy. And that is a good thing. It did get VERY quiet by Wednesday when all the authors and many of the editorial staff had left. Cutting a full day from the normal four day convention was a very good decision. Kudos to CBA for listening to their members on that score.

6) Those who were predicting that this would be the last ICRS (and that the industry was doomed) were wrong…again. Why is it that we like to view things so negatively? Is it that genetic disposition we have for slowing down to see a car wreck? Do we like to complain to elicit sympathy from our audience? While I can be as morose as the next guy, I try hard to see things in a more positive light. So while the show was a bit slower pace than in past years, it still had great benefit.

7) Benefits for our agency.

a) face time with key people
b) finalized negotiations on three contracts, in person.
c) navigated an author/editor clash, in person. Invaluable to have this kind of conversation face-to-face. Removed all the potential negativity that is systemic to all email communication. Instead the flow of words and exchange of ideas was critical to resolve the problem for everyone.
d) Met with two companies that are working hard on bringing digital products to the consumer via the retailer and the Internet. I was able to find out how I, as an agent, can help their efforts with publishers which will alternatively benefit our client’s sales.
e) Met with a long time industry friend who is seeking an aggressive way to bring back, in ebook and POD, those books, by my clients, that are now out of print and unavailable.
f) Heard the nuanced vision for publishing from at least a half dozen major publishers. Always helpful to hear them articulate their ideas and hear how I can find the right books for their program.
g) found out about two editors whose jobs have changed. One is not returning after maternity leave, another is leaving the company. It’s like trying to keep track of your favorite baseball player during the free agent signing season. People shift around all the time and each time creates another subtle change in the labyrinth.
h) had time with 12 clients who attended. Always nice to touch base, even if for a brief hello. Missed seeing five others due to scheduling conflicts.

You catch the theme here? “In person.” This is a relationship business…as it should be. Friends and acquaintances working towards a common goal.

Anyone else have a different take?

Tags: Bookselling, convention, ICRS
Posted in ICRS | 4 Comments »