The HarperStudio cavalry is on the march.
Via the (indispensable) HarperStudio blog and the WSJ comes news that HarperStudio and Borders have reached an agreement on a framework for ending returns. In exchange for a discount ranging from 58-63%, Borders will buy HarperStudio books on a nonreturnable basis.
On the HarperStudio blog, Bob Miller writes that they had originally hoped to have a more expansive non-return program, but after six months of discussions they decided they needed to have a mix of returns and non-returns because some accounts can’t or won’t go the nonreturnable route.
The returns model has long been a problem for publishers, who often end up having to print (and pulp) twice as many copies as actually sell, an economic and environmental mess. While it allows bookstores to be flexible with ordering and theoretically allows them to take chances on unknown commodities without being stuck with the bill if they don’t sell, some have called the process, well, sloppy and inefficient. It’s a system that few people have any affection for, and now Borders is signaling a willingness to tweak the model (of course, at a steeper discount). (For more background on returns, please see this essential Richard Curtis post, via Moonrat).
Questions remain. Will booksellers grow more cautious in taking on new titles when they know they can’t return them? Will they stock fewer titles? Will it be harder for first timers to break out because of cautious print runs? Or will the system make booksellers put more care into the titles they buy and make sure they sell?
It’s going to be interesting to see how this shakes out, particularly if it is adopted in a more widespread fashion. But BRAVO for experimentation in a time when we desperately need to see some new ideas in action.
Ink says
That’s fantastic. I’m interested in seeing how this plays out.
Nathan, I tacked a question on at the end of the last thread, and wondered if I should reprint it here… something I’m curious about, and thought others might be too. I’ll leave it up to you… (you’re a busy man – married, yes, just you wait… – and might not have time to answer all my odd questions).
My best, as always,
Bryan Russell
Deaf Brown Trash Punk says
I’m nervous as hell about everything, due to the economy, but this should be good to watch and see what happens.
MzMannerz says
I think it’s ridiculous to return a book. Experiencing art is not refundable. You don’t receive a refund from the museum if you didn’t care for the paintings, or a refund from the theater if the film wasn’t up to snuff. Just rankles me. Not that you could tell. 😛
Lady Glamis says
I agree that this is exciting. I sure hope that if I ever break into print that this will not affect my work in too bad a way.
I’m anxious to see how fast this makes a difference, and whether or not others take it on.
Anonymous says
Does this ring a bell, Nathan?
https://www.ereads.com/2008/12/behind-publishings-wednesday-of-long.html
Morgan
BarbS. says
Nathan, are returns in this context the books that the seller returns to the publisher, or the books that customers return to the seller?
Thanks!
Juliana Stone says
A question Nathan…HarperStudio…is it the only imprint that is doing this? Are they a part of Harpercollins? I’m asking because I’ve recently sold to Avon and was wondering how this might affect me….I see this as a positive move…now if we could only stop all the ebook pirates out there stealing from authors….
Madison says
I’m open to new ideas. If they work, keep ’em. If not, trash ’em. 🙂
Nathan Bransford says
Morgan-
I wanted to link to the Richard Curtis article, but it wasn’t loading earlier. I’m going to add it in now.
MzMannerz says
“Nathan, are returns in this context the books that the seller returns to the publisher, or the books that customers return to the seller?”
Whoops, great question. I recently read a blog post about customer returns which has me up in arms. Completely different situation from books the bookstore didn’t sell.
Susan Helene Gottfried says
This is going to be neat to watch.
My hope is that we’ll wind up with a return to the days of hand-selling and bookstore staff being the valuable resources they were once highly regarded for being. I found more than one fantastic author via a great and knowledgeable bookseller.
Nathan Bransford says
barbs-
Booksellers are able to return un-bought books to publishers for credit. It’s a consignment system.
Nathan Bransford says
JuliaStone-
As far as I know this is just for HarperStudio.
T-Anne says
I’m OK with it. That’s what libraries are for.
T-Anne says
Oh Dear.. *sigh* you weren’t talking about customers were you.
BarbS. says
Thanks, Nathan!
Ohmy, this certainly will be interesting to watch…
Dan says
If the booksellers are receiving a steep enough discount, I’d think they could take the same chances as they have in the past with new authors.
If they guess wrong and order too many books, they’ll be able put them on the SALE table and at least break even on the remaining copies due to the lower cost.
This method seems more efficient and as though it would also encourage more thoughtful decisions by the purchasers.
RW says
I read recently (don’t know if it’s accurate) that the custom of publisher returns started during the Great Depression as a way for publishers to keep retailers, which had more cash flow problems, buying their books, and the arrangement just never went away after the financial crisis had passed. Ironic that it’s getting its most serious re-think during the most serious economic crisis since the Depression.
Dan says
On that note, I know you’ve mentioned a little about the purchasing process from the retailer’s perspective – but perhaps a little more information about *how* exactly the process works could be helpful for the readers?
Do purchasers read the books, or just what the publisher’s marketing team gives them to read? It seems in this day and age, product research is something that shouldn’t be neglected in ANY industry.
dara says
This will be interesting to see–hoping that it doesn’t make it even harder for us first-timers to break into the market. But I suppose time will tell!
Mim says
I think that this system will work, but maybe the books should be easier to print on demand. If that makes sense. That way you can be consistently restocking titles that are moving faster than you predicted. Overall it means that less paper is wasted, but I worry about book availability for the sleeper hits.
Netanyahu says
I think some form of hybrid system would be workable in the short run: enable booksellers to return a portion (say, 20%) of their purchases. That would create some discipline – and additional risk – for the bookseller and give the publisher some cost certainty. This could be a transition to a no-returns system.
Robena Grant says
This is a lovely holiday gift. I’m anxious for it to work and love that Borders and Harper Studio are willing to try something new. Makes me want to head over to Borders and buy a few more books.
MzMannerz says
Totally confused, someone educate me: this means that instead of the existing ‘consignment’ system, Borders will buy the books at an upfront discount and agree not to return them for credit?
dale - lvcabbie says
Maybe this is off-topic but doesn’t that mean that more emphasis will be put on e-books and/or Print on Demand?
Anonymous says
…and yet another reality check link from galleycat. Nathan, what are your thoughts on the literary agents/agency suffering the same fate as publishers.
https://www.mediabistro.com/galleycat/publishing/welcome_to_the_death_of_publishing_take_forty_103547.asp
Morgan
Mechelle Avey says
Having independently published my work, returns were something I dreaded. Once I got a huge check from my distributor only to have that cut in half six months later because of returns!!!! That money was long gone. Suddenly, I owed the distributor. Small publishers have it even worse than the big guys. If you’re big, at least you can throw some weight around. Kudos to HarperStudio, although soon, one wonders if writers and publishers will do all of the work of getting a book put together only to receive a small gratuity for their efforts. Where will agents be in this brave new world defined by a faltered economy and a preference for digital media?
BarbS. says
Mechelle Avery,
Oh, how my heart goes out to you! I saw that happen to a friend. It was dreadful…worse than ugly.
I’m not sure that readers prefer to go digital. There’s something about curling up with a book-in-hand that a literary prosthetic device can never replace.
MzMannerz,
That’s what it sounds like. Eek.
Marilyn Peake says
In terms of being less wasteful, it’s great that someone’s finally experimenting with ending the returns policy. I imagine this will be a mixed blessing for new authors if publishing houses are less willing to take them on. On the other hand, someone who worked in a major chain bookstore once told me that they had agreements with publishing houses to accept shipments of books by unknown authors along with big-name authors, and they often just returned whole boxes of books by the unknown authors without ever putting them on the shelves. If the Kindle becomes more popular, maybe new authors could be published first in eBook format?
Kristin Laughtin says
Will booksellers grow more cautious in taking on new titles when they know they can’t return them? Will they stock fewer titles?
Ahh, just the question I was going to ask after the second paragraph. I’m interested to see how this plays out. I’ve long done most of my book shopping at Borders, and I’m wondering how it will affect their selection.
Juliana Stone says
Marilyn….OMG that’s insane…..taking books from new authors and never even stocking them? honestly, that makes me sick…I’m shaking my head as I type….
Scott says
Bravo for experimentation, indeed. The environmentally conscious angle is a nice touch, too. It does give me some pause, though.
I guess bookstores wouldn’t change their buying policy too much as the discount would cover their losses, which would then force booksellers to accept only those titles that they feel will accrue further orders. One hopes, however, that that won’t lead to publishers choosing primarily those titles with a strong track record and that the know for sure will appeal to the widest profit base. Kind of the “Hollywood model”.
In other words, we could lose a lot of fresh voices.
sex scenes at starbucks says
Though I agree with the no return policy in general, I thought they also could have eased into it with a “restocking” fee system. It’s worked in the hard goods/design industry for years.
lotusloq says
It’s exciting and scary at the same time. I’ll be following how this plays out pretty closely. I’m afraid it will mean there will be less space for the new break out authors. Alas! It seems to be getting harder and harder. Maybe this sort of thing will lead to more newbies breaking out in the e realm until they get enough clout to get a print run.
Bethany Hamilton says
Being an author attempting to Break In, this is scary as well as logical.
I can definitely see the need for a system like this, and why it would be great for the evironment, and the economy.
But…where does that leave new authors?
I pray it’s not in eBook format!
Perhaps the tride and true authors should be bumped to eBook since their followers will go there with them, and the book stores should be filled only with new authors.
That way, the eBook reader sales will go through the roof, the greatu authors will continue to thrive, and the new authors will still get their books in a bookstore. Everyone wins!
Yes…that was completely snark.
pseudosu says
With the onus for selling their stock now resting on the booksellers, perhaps it will encourage them to be more creative and assertive in their own marketing strategies.
I think the buying public (ahem) will have to demand new voices and a varied selection to make bookstores / publishing look how we want it to. As in all things democratic- we seem to get what we deserve, for better or worse.
Janet says
I think it’s a fantastic idea. A more realistic business model should mean a more rational market in the end, and I think one that will ultimately be better for authors.
Anonymous says
Never mind my earlier post, Nathan. I do not think you can top Janet Reid’s response…Classic.
https://jetreidliterary.blogspot.com/2008/12/oh-just-shut-fuck-up-already.html
Morgan
Scott says
Well said, pseudosu.
I wonder if publishers will end up paying attention to e-book trends in order to gauge what new authors the “buying public” seem to want? Can’t figure out another way the word would get back without marketing efforts on their part (surveys, online feedback, responding to press releases, etc.). Perhaps bookstores can stock promo copies or some form of excerpt catalog with the idea being to order from the counter.
Then again, maybe it’s up to the agent to sell a little harder? 🙂
Bea says
I think all book buying should be through “print on demand.” The bookstores could order one copy of everything to keep on their shelves. People walk in and browse. If they want to buy a book they see, they fill out a little card with title and author and their shipping address and take it to the cashier, who orders the book for them. If the book is a blockbuster hit, it might take a couple of weeks for it to arrive, but hey — people were happy to sign up on a waiting list for the Prius when it first came out, right? Just think of all the trees that would save, not to mention author $$ for print runs that don’t sell.
BarbS. says
And well-said, Scott!
Promo copies and excerpt catalogs are good things, but I sometimes think any kind of printed matter is no longer the way to generate interest in a book, because the market is cluttered and consumers are overwhelmed by choices.
So how does a publisher spread the word?
Consultants are working on the problem as we “speak,” and the solutions are going to involve some pretty creative hype-making.
Nathan Bransford says
Bea-
That already exists — it’s called Amazon.com
Anonymous says
Bottom line this is good for the publishing industry. Not so good for writers trying to break in and develop a career. Just as you posited, stores will be more loathe to carry a new writer and when they do, it will be a pittance, making it difficult for the new writer to get the ‘numbers’ on his sales that will ensure his career. There may be many more ‘one book’ writers because of this development.
MoJo says
The Perfect Bookstore
Verification word: readdeth
Spooky.
BarbS. says
Mojo,
That bookstore says it all! :0
My wordver is something I'm about to indulge in at the local B&N: spree. 😉
That, too, is spooky!
disorderly says
The whole returns/no returns system is a nightmare. I’m inclined to believe giving deeper discounts and disallowing returns is the way to go, based on years of experience in the magazine biz. I’m not sure how book publishers handle returns, but in the mag biz distributors and retailers don’t actually return the merchandise — they send only “affidavits,” which are signed statements attesting that a certain number of copies didn’t sell and were destroyed. Sometimes they attach partial front covers to the affidavits. In cases where they don’t, the system lends itself to corruption (read “lying”). One publisher for which I worked caught a BIG distributor inflating its returns in such a way that at the end of one year, the distributor’s return affidavits indicated the company returned more magazine issues than it had gotten. (Issues could be returned for up to six months after their shelf date, so six months down the road often several “surprise” returns of an issue suddenly would appear on an affidavit.)
Seriously, maybe a no-returns policy would encourage booksellers not to bite off more than their customers are interested in chewing. In addition, if books can’t be returned, maybe they’ll be marked down (which would be good for consumers who can wait a while after the initial rush) or donated to reading programs and the like.
No-returns policies are likely to make things a little tougher for new voices, though, and it seems like publishers would be more likely to clamp down on first runs.
Avily Jerome says
Amen to that! Yay for breaking the mold!
Thanks for the post!
pjd says
… BRAVO for experimentation…
You’re just saying that because you live in San Francisco.
I was about to post something similar to Bea’s notion. Are there any statistics on how people buy books? Specifically, I’m thinking that most people buy a book and then don’t actually read it right away.
I know a number of people browse a bookstore, then go buy through Amazon. They like browsing, but they don’t need to walk out with the book that moment.
Whatever ends up happening, it is likely that the big-box bookstore will be next decade’s dinosaur. I am not smart enough to know for sure what the new model for the next 20 or so years might be (I have an idea), but whoever gets it right stands to make bank.
BarbS. says
Nathan,
Is it common practice for on-demand publishers (e.g., Ink Water Press) to charge writers a fee?
(Oooo…gotta run. B&N closes in an hour! :0 )
BarbS. says
PS: Thanks!