Borders prices upset book publishers
Saturday Nov 08, 2008 . By Errol Kiong writing in the Weekend Herald.
The retailing group, which has five stores in New Zealand, has marked up prices on a number of books in its Christmas catalogues, selling them well above what rival bookstores would be retailing them for.
But it has included a price guarantee - a Bunnings Warehouse-type sales device that promises to match a lower price advertised elsewhere, leaving the onus on the buyer.
"I don't think it's an argument for hiking prices by 10 per cent and then saying on the same page, we've got the best prices guaranteed. I don't see how they can do that," said one independent publisher.
The publishing industry is unique in that booksellers such as Borders buy their books at a discount off the recommended retail price (RRP) set by publishers, rather than the more conventional addition of a margin above the nett purchase price.
The publisher, who asked not to be named, was angry when he noticed one of his books marked up 10 per cent above the RRP - the price it is selling for everywhere else.
Even big names such as Random House and Penguin are affected.
He said: "It affects our income, it affects the author's income and I think it's deceiving the public."
Read the full story at the Weekend Herald online.
Saturday Nov 08, 2008 . By Errol Kiong writing in the Weekend Herald.
Picture - Herald on Sunday
Bookseller Borders' Christmas catalogue specials have incensed book publishers after certain titles were marked up beyond their recommended selling price.The retailing group, which has five stores in New Zealand, has marked up prices on a number of books in its Christmas catalogues, selling them well above what rival bookstores would be retailing them for.
But it has included a price guarantee - a Bunnings Warehouse-type sales device that promises to match a lower price advertised elsewhere, leaving the onus on the buyer.
"I don't think it's an argument for hiking prices by 10 per cent and then saying on the same page, we've got the best prices guaranteed. I don't see how they can do that," said one independent publisher.
The publishing industry is unique in that booksellers such as Borders buy their books at a discount off the recommended retail price (RRP) set by publishers, rather than the more conventional addition of a margin above the nett purchase price.
The publisher, who asked not to be named, was angry when he noticed one of his books marked up 10 per cent above the RRP - the price it is selling for everywhere else.
Even big names such as Random House and Penguin are affected.
He said: "It affects our income, it affects the author's income and I think it's deceiving the public."
Read the full story at the Weekend Herald online.
1 comment:
The real story here is hidden in the comment by the Borders managing director that they need to overcharge to remain commercially sustainable.
It is common knowledge in the local book trade that the Borders big box, high rental stores are bleeding badly, but the idea of gouging the few loyal customers they have, and then refunding the difference if, and only if, the customer then asks, is clearly a sign of how desperate it is for them.
The bizarre explanation that Borders is one of the only places where customers can comfortably browse books before they purchase them is an insult to our wonderful independent booksellers who have been providing such a service for years before Borders arrived.
As one of them I know better than most that it requires higher running costs to maintain standards greater than Borders will ever achieve, but we manage to do survive without resorting to these tactics.
I half-expect their next marketing strategy to be to charge an entrance fee for customers to enter their stores, given the superior shopping experience they so obviously think they provide.
I'm grateful to the publisher who had the courage to go to the Herald with this story. As with the infamous Charlie Rimmer letter in Australia last year, the A & R group can be fairly vicious in their dealings with small publishers.
And I'm grateful to the Herald or publishing the story, and to the Bookman for posting it.
But I'm grateful most of all to Borders for the boost they have just provided to the independent booksellers, and just before Christmas too.
Brilliant.
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