Don't be an iPhoney, buy where you shop!

Here's Harvard Bookstore's reply to Amazon's evil app (thanks to GalleyCat for the link):



Yours,
Raz @ Eco-Libris

Eco-Libris: Promoting sustainable reading!

How green is the Kindle Fire - part 4: Can the new tablet actually benefit independent bookstores?

Today we continue with our Amazon week. After discussing if the new Kindle Fire and other new Kindles will contribute to making e-reading greener (it will), and comparing Kindle Fire with iPad 2 and Nook Color and see which device is greener (iPad 2), and it's influence on B&N (big trouble for the bookseller), we'll talk today about the impact of the new Kindle products on independent bookstores.

The good news is that indie bookstores are not invested in any tablet or e-reader like B&N, so they don't have to worry about dwindling sales of electronic products. At the same time, it's quite obvious that the launch of the Kindle Fire will only help increasing ebook sales. This is not good news for independent bookstores because ebook selling is still not one of their strengths and I don't believe it will be in the near future.

Yet, the fact that B&N is in deep trouble because of the new Kindle products offsets this negative impact on indies and in a way creates a positive one. Why? Because my guestimation is that B&N will have to put even more money on their line of Nooks and spend less and less money on their brick and mortar stores, while keep closing a growing number of them to reduce their loses.

So, for indies it means less competition when it comes to book purchasing in bookstores. It doesn't mean a rosy future and we will probably see also indie bookstores that are getting closed, but it might help them to keep their head above the water at least for the near future.

What about the long-term? That's a good question, and the answer mainly relies on the ability of indies to adopt to the 21st century challenges and to change their business model in a way that will meet tomorrow's challenges instead of yesterday's challenges. As Oren Teicher, CEO of American Booksellers Association wrote lately:

"The fact of the matter is that, for the most part, as an industry we have continued to operate using a business model that has gone largely unchanged in 60 years. While we still very much want to read and handsell our favorite titles from the past, clearly, we no longer have the luxury to continue employing business models that no longer meet the challenges of a radically different social, technological, and business environment. "

Tomorrow we'll have the final piece on our Amazon week, this time on the influence of the new Kindle Fire on Amazon's carbon footprint and if we'll see any change in the company's refusal to disclose it.

To read more news and updates on the future of bookstores go to our website at http://www.ecolibris.net/bookstores_future.asp

To read more on how green is the Kindle, visit our website at http://www.ecolibris.net/kindle.asp

Yours,
Raz @ Eco-Libris

Eco-Libris: Plant a tree for every book you read!

Is Amazon killing independent bookstores by not collecting sales tax? Not really..

After reading on David Streitfeld's article on the New York Times on Amazon's efforts to avoid collecting sales tax in California (as well as other states), I was thinking about the importance of this refusal on independent bookstores.

The problem? "Any Californian who buys a book or a DVD player from Amazon is supposed to pay a use tax when filing state taxes. In practice, however, few do." And Bill Dombrowski, head of the California Retailers Association, adds "Amazon is killing our business in bricks-and-mortar stores."

I believe Amazon's refusal to collect sales tax is wrong and immoral, but is it really killing indie bookstores? I decided to check it out.

I heard yesterday a great book review of Maureen Corrigan on "The Submission" by Amy Waldman and decided to check what happens if I live in Novato, California and want to purchase this book. For my unscientific experiment I compared an online order from three independent bookstores located in San Francisco (The Booksmith, City Lights Books, Green Apple Bookstore) and an online order from Amazon.

	Amazon	City Lights	Booksmith	Green Apple
Book price	13.68	26	26	27
Shipping	3.99	10	8	5.9
Tax	0	2.21	2.21	2.3
Total	17.67	38.21	36.21	35.2
Sales tax as part of the difference between the store and Amazon:
		11%	12%	13%

Bottom line: What kills indie bookstores is the fact that Amazon sells books in half price and provides much cheaper shipping. Not the sales tax. Even if Amazon will start paying sales tax tomorrow (and they definitely should), indie books are still going to be in trouble with such a difference in costs.

Yours,
Raz @ Eco-Libris

Eco-Libris: Plant a tree for every book you read!

Independent bookstores find ways to compete in the digital age, but will it save them?

Yesterday I read an interesting article on JSOnline ("Independent bookstores find ways to compete in the digital age") describing some of the challenges of indie bookstores as well as the strategies they employ to overcome these challenges.

These strategies are mostly based on finding ways to offering "enough extra value and a sense of community." This is a very good strategy, which is utilizing the indies' best strengths, but the question to be made is - will this be enough? My answer is - probably not.

The reason is that even though "book club meetings, appearances by bestselling authors, discounted books for students" are all good ideas and provide customers with benefits they're not substantial enough for most readers to outweigh the easiness of ordering book online or the better price they'll probably get on an online store. And we haven't mention the purchase of e-books, where there isn't much incentive for readers to go online to their favorite indie and purchase an ebook there.

In any event, readers need more incentives. It might be not fair to demand it from indie bookstores or even from Barnes & Noble, but this is the reality and we need to face it.

Just read this part out of the article:

"I'm a book lover," Thiel said, adding that the Borders closings saddened her. She travels to Milwaukee often, she said, and had shopped at the Borders store on Brown Deer Road.

If brick-and-mortar bookstores no longer existed, she said, "you no longer can browse the bookstore shelves and find that hidden gem. You can't do that online." Yet Thiel buys books from Amazon when the online seller offers a percentage discount and she also buys e-books for her iPad.

So the bottom line is that price and convenience win almost every time or enough to keep too many readers at home buying their books online. If independent bookstores want to win this war they need to find a way to offer more convenience and even more important - better prices. The later can come for example from collaborations with other local businesses that can provide discounts that customers will appreciate and take into consideration when deciding if they want to make the trip to their nearest indie bookstore.

You can find more resources on the future of bookstores on our website at www.ecolibris.net/bookstores_future.asp

Yours,
Raz @ Eco-Libris

Eco-Libris: Plant a tree for every book you read!

Boneshaker Books, a great new bookstore in Minneapolis, is joining Eco-Libris program!

We are happy to update you on a new bookstore, Boneshaker Books of Minneapolis, MN that has joined our bookstore program.

The store was opened in January 2011 and now customers at Boneshaker Books can plant a tree for every book they buy there and receive Eco-Libris "One tree planted for this book" sticker (made of recycled paper) at the counter!

Here are some more details on Boneshaker Books:

Boneshaker Books is an all-volunteer independent bookstore in south Minneapolis. They opened their doors in January of 2011, and specialize in progressive/radical literature, zines, children's books, and fiction. We want to inspire solidarity by offering a warm, comfortable place where everyone is welcome. Boneshaker also offers free bicycle book delivery and is home to the Women's Prison Book Project, a program that mails books to women prisoners all over the country.

Come check them out at:
2002 23rd Ave. S.
Minneapolis, MN 55404
612-871-7110
Open 11am to 8pm daily! You're also welcome to visit them on Facebook.

(Photo: Boneshaker Books, Boneshaker Books Grand Opening!)

Another great bookstore in Minneapolis that is on our bookstore program is Eye of Horus, the metaphysical store, Mythic Art Gallery and Labyrinth nested between the Wedge and Uptown areas of South Minneapolis.

A full list of all the stores that participate in our bookstores program can be found here: http://www.ecolibris.net/bookstores.asp

Yours,
Raz @ Eco-Libris

Plant a tree for every book you read!

Five ideas that can help Powell's Books avoid bankruptcy

Powell's Books, a nearly 40-year-old book retailer with six stores in the Portland area, including the 68,000-square-foot flagship, Powell's City of Books, which is described as "the most vaunted brand in the independent bookstore world", is in trouble.

According to article on the OregonLive.com, about two weeks ago Powell's laid off 31 employees due to a drop in 2010 sales - In an email memo they sent to their employees, the company explained that "sales for this fiscal year are down and we expect this trend will continue. The largest decreases have been in new book sales". The company also announced it is taking other measures such as suspending company 401k contributions for a minimum of a year and a pay freeze will go into effect July 1st for a minimum of a year.

The problems of Powell's are not very different from other book retailers, both independent and large ones and Tom Gillpatrick, a retail marketing professor at Portland State University explains it very clearly in the article: "The Powell's model that has been so successful is really being challenged by new competitors, new technology and new shopping habits. They need to go back and rethink that business model, otherwise it'll just be ratcheting down and down - unless there's some huge wave of nostalgia."

It's clear that the problems in Powell's Books are structural ones and that if no major steps will be taken in the next year or two, Powell's with their 400 to 600 employees (depending on season) and $68.4 million in revenues (source: Hoover's), will be in a much more difficult situation that might jeopardize its future.

So what Powell's Books can do to reverse this unfortunate but nevertheless foreseen trend? I'm not sure we got all the answers but here are five ideas that might be helpful:

1. Make a better use of your strengths - Integrate your digital and brick and mortar strengths - If you offer great service in the stores, try to offer it online (how about online live help to find the right book)? If you offer a great web experience on your website, why not make it even greater for your stores' customers with exclusive materials available only for those who visit Powell's stores (just like Starbucks for example)?

2. Provide local incentives - It's obvious that Powell's can't compete on price, and it's also clear that Powell's want to increase sales at stores as they don't want to stay an online business. To get there they need to extend their best comparative advantage - being a local business in Portland. The problem is that just being a local business is usually not enough and works in very few places (see Greenlight Books for example).

Powell's should adopt a strategy that is based on providing local incentives - for example partnering with other local businesses and offering discount coupons for customers who purchase in Powell's stores (get a $5 discount in a local coffee shop for every 3 books you buy for example) and in these local businesses (get a $10 discount at Powell's for every 5 coffees you order in your local coffee shop). This way customers will know they support local businesses and profit out of it at the same time.

3. Get POD into your stores (at least to one of them at first) by adding the Espresso Book Machine (check at McNally Jackson in New York). This machine can print in minutes affordable, library-quality paperbacks and can also print anything in the public domain, increasing the store's inventory by over 4 million potential titles. This is something that can really increase the value of a visit in your stores for your customers.

4. Offer a CSA-based program - If there's a place for a local supported bakery and a local supported beer, there's definitely a place for a local supported bookstore program. Just find the right way to make people enthusiastic and involved just like with CSA programs.

5. Find other uses for your space or reduce it - In the near future bookstores will see a decrease in their brick and mortar sales - more people will buy online both e-books and paper books. Therefore, Powell's should look for alternative uses of its space and will provide real value, or if there's no other choice close some of its stores. No matter how you look at it, supply must adjust itself to demand.

We want to see Powell's Books thriving and continuing to be "the most vaunted brand in the independent bookstore world", so I hope our ideas might be helpful and in any event I hope Powell's will consider and implement new and innovative ideas because it has to in order to survive.

Yours,
Raz @ Eco-Libris

Eco-Libris: Working to green the book industry!

Where consumers REALLY buy ebooks?

"Nearly 81% of eReader Owners Would ‘Likely’ Buy eBooks Online from Indie Bookstores" - this was the headline of an article I read last week on GalleyCat, quoting a Digital Book World and Verso survey. Really? Does it sounds realistic? I'm afraid not.

Just to give you the full quote, it says "nearly 81 percent of eReader owners would “likely” buy eBooks online from independent booksellers–as long as the prices were competitive.". It reminded me of similar headlines I have read in the past, such as these ones:

• Three-quarters (77%) of consumers describe themselves as green — that is, actively living their lives consciously of their health and environment, according to a survey by Yahoo!
  

• According to a BCG’s report, 34% of the public systematically look for and often purchase green products. (2008 figures)

• A new Pike Research survey finds that 44 percent of consumers are “extremely” or “very” interested in purchasing a plug-in electric vehicle (PEV)
  

• Fifteen percent of U.S. consumers are very or extremely likely to purchase a vehicle that has plug-in hybrid technology, not taking into account estimated market prices, according to Harris Interactive’s AutoTECHCAST U.S. study

One thing that is common to all of these findings is that although they're very optimistic, they're not real. People say one thing on these surveys and do something else in real life. Otherwise, we would already have a very large green market.

Independent bookstores account for about 10% of the industry’s retail market overall, so it doesn't make too much sense that the same readers who generally choose to ignore independent bookstores and but their paper books somewhere else, will suddenly show affection towards these stores and buy there their e-books.

The right question I believe is not where readers are likely to buy their ebooks but where they already do it. If you ask this question, you will probably receive different results.

For example, a survey conducted by the Codex Group in early November of 6,250 frequent book buyers found according to Publishers Weekly that "more book buyers acquiring their e-books for the iPad from Amazon's Kindle store rather than through Apple's iBookstore, with the Kindle store accounting for 40% of e-book sales for the iPad and the iBookstore 29% (one factor limiting sales through the iBookstore is that Random House e-books are not directly available there because RH is not using the agency model). "

As you can see from the graph with the Codex Group's survey results, among iPad owners the market share of independent bookstores is somewhere between 0%-19%. It doesn't necessarily indicate that this is this would be the same with the general population of e-book readers, but it definitely looks more realistic than 81%.

In all, my guestimation is that when it comes to ebooks, the market share of independent bookstores will be between 5%-10%, as the competition online is more fierce than the competition offline. But, that's only my guestimation - to get a real sense of what's going on we'll have to wait to a survey that will look at the places readers actually buy their e-books.

Until then don't confuse attitudes with behavior.

You can find more resources on the future of bookstores on our website at www.ecolibris.net/bookstores_future.asp

Yours,
Raz @ Eco-Libris

Eco-Libris: Promoting sustainable reading!

The future of Independent bookstores (or: 5 comments on 'Small Bookstores Struggle for Niche in Shifting Times')

Julie Bosman wrote an interesting article (Small Bookstores Struggle for Niche in Shifting Times) on today's New York Times, on the search of Independent bookstores for the right ways to secure their future in times when even a giant bookseller like Borders finds it difficult.

The article was following the American Booksellers Association’s Sixth Annual Winter Institute last week, which was an opportunity for indie booksellers to "to learn, network, and just have fun". According to Bosman more than 500 independent booksellers debated their next step in this event.

The future of bookstores and especially independent bookstores (whose stores, according to the article, account for about 10% of the industry’s retail market overall) is one of the issues we're following and addressing for a long time, as we believe this would have an important influence on how the book industry will look like in the future.

Here are five thoughts on the issues brought up in the article (each comment starts with the relates quote from the article):

1. "At a workshop on Thursday, dozens of booksellers debated the finer points of alternative business models, like the addition of a cafe. Is it worth the trouble, one person asked? How do you figure out how much to charge for scones and lattes? And even if nonbook business attracts attention, how much profit will follow?“At a certain point, I begin to feel like we don’t need more P.R.,” said Roxanne Coady, the president and founder of R.J. Julia in Madison, Conn. “We need sales.”" - Roxanne Coady is right. Sales is the bottom line, but to get there indie bookstores need to provide customers with value. Value is what will eventually get customers back to stores and generate sales. Once this value was based on service and the sense of community. Apparently today this is not enough and there's need in ingredients to the 'value' indies provide.

Can coffee or vine sales be that ingredient? They can definitely help to strengthen the sense of community or be sort of a 'foot in the door' to get customers in the store, but then bookstores will have to start specialize in wine or coffee, which may not be easy at all. I'm not saying bookstores shouldn't sell more products other than books, but from a specialization point of view my estimate is that bookstores might do even better if they collaborate with the local wine or coffee shops, offering then coupons with special discounts on books for example, for their customers, and on vine/coffee for the bookstores' customers.

My feeling is that without a monetary incentive, the store's value won't be valuable enough for customers no matter what products they store will add.

2. "One challenge for booksellers, they said, was finding the balance between selling their core product without overwhelming it with the presence of coffee, baked goods, gifts and other merchandise." - True. I believe that some of the stores that will choose to focus on coffee, baked good, gifts and other merchandise will eventually find that they do well with these products and will become a coffee shop or a gift shop that also offers some books instead of a bookstore that offers coffee or some gifts.

3. "Naftali Rottenstreich, an owner of Red Fox Books in Glens Falls, N.Y., said it would be difficult to get customers to think of independents as places to buy books online.“The mindset right now is, that’s Amazon or that’s BarnesandNoble.com,” he said. “There’s a transformation that has to take place, and I think it will happen in time.”" - He's right. The problem is that even if this mindset will change then there's a small chance this platform will bring new customers to the stores. Online sales in their current settings won't help brick and mortar sales as it doesn't provide customers with any incentive to go to the stores and buy there books and therefore doesn't help the bookstores' owners in figuring out how to transform the stores back to an asset.

4. "“We know now that in the world of physical bookselling, bigness is no longer viewed as an asset,” said Mitchell Kaplan, owner of Books & Books, which has independent stores in South Florida, Westhampton Beach and the Cayman Islands. “It’s about selection and service and ambiance."" - I would rate them in this order: Ambiance, service, selection. Atmosphere is maybe the most important thing - if you go to a bookstore where the service is great, but the atmosphere is not very welcoming or you're feeling like you're in a book warehouse, or it's just not fun to be there, most chances are you won't come back. On the other hand, if you go to bookstores like Greenlight Bookstore in Brooklyn, where you feel at home the minute you walk in, there's a pretty good chance you'll come again no matter what.

Service is also very important part of the value proposition of the store and shouldn't be ignored. When it comes to selection, it's a tough call because as an indie bookstore you will never be able to compete with Borders or B&N, not to mention Amazon, so maybe it should be about meeting a minimum level of selection to maximize the chance customers will actually find books they look for.

5. “We have to figure out how we stay in the game,” said Beth Puffer, the director of the Bank Street Bookstore in Manhattan. “You have to rethink your whole business model, because the old ways really aren’t going to cut it anymore.”" - I couldn't say it better myself. Finding the right strategy, focusing on the way to revive sales in the brick and mortar business, is key for success. Any bookstore that doesn't make it its first priority will be left behind and eventually go out of business, and it's true not just for independent bookstores, but also for the big chains like Barnes & Noble and Borders.

More related articles:

We love Greenlight Books but think they might be wrong about the future of independent bookstores

5 reasons why independent bookstores shouldn't count too much on Google Editions

Is there a future for Barnes & Noble and Borders bookstores? Is it a green one?

Can monetary incentives + local benefits generate a brighter future for independent bookstores?

You can find more resources on the future of bookstores on our website at www.ecolibris.net/bookstores_future.asp

Yours,
Raz @ Eco-Libris

Eco-Libris: Promoting sustainable reading!

We love Greenlight Books but think they might be wrong about the future of independent bookstores

Fact 1: I love Greenlight Bookstore. I visited the store, located in the Ft. Greene section of Brooklyn, couple of weeks ago on Saturday to hear a story time for Chanukah with my little daughter and it's a beautiful store with a great atmosphere.

Fact 2: I read yesterday an article on NPR, where it was written that "these days, independent bookstore owners Rebecca Fitting and Jessica Stockton Bagnulo of Greenlight Books in Brooklyn argue that the struggling local bookstore is a thing of the past." I think they might be wrong.

So I don't really need to further explain why I love Greenlight Books (and if you haven't been convinced, just pay them a visit), but I certainly owe you an explanation why I think they might be wrong when it comes to the current state of indie bookstores.

First, the article on NPR tries to present a thesis that indie bookstores are in better shape now than big book retailers like B&N and Borders. Rebecca Fitting, one of the owners of Greenlight Books, explains it in the article:

"The potential is for there to be two trends," she explains. "Digital content — which is ubiquitous and everywhere — and the local, boutique, curated side. And the chain stores unfortunately don't have the advantage in either of those areas. I mean, they can't carry every book in the world in their store, and they don't have the same emotional connection to their neighborhood that a local store does."

To sum it up, Fitting and the other co-owner, Jessica Stockton Bagnulo, believe that the two main factor that differentiate indie bookstores from big chains is the emotional connection of local customers to their local bookstore. Add to that the new opportunities to sell ebooks now that they started partnering with the new Google eBookstore and you've got this part covered as well.

I believe that the emotional connection factor is real, but I think that only in places like New York, San Francisco, Portland and few other cities, where there is a large number of people with what you can call 'strong local values' who are willing and able to translate these values to local purchasing. These are the same people that care about and purchase local food for example.

But the point is that it looks to me that Ft. Greene is the exception and not the rule. From what we see, hear and read bookstores in many other places don't enjoy the same fortune Greenlight Books has and not because they're doing something wrong, but because they don't have a similar committed local population that is willing and able to support them.

As long as independent bookstores stick to the same retail model they have been using for years, the emotional connection factor, beneficial as it may be, won't be enough to keep them in business. For most people, the choice when it comes to purchasing physical books, would still be the cheapest website they could find on the Internet or the one they got used to like Amazon.com for example.

I wish I was wrong, but unfortunately it looks like more indie bookstores are closing than opening.

Regarding the ebooks part - although the partnership with Google opened a new window of opportunities for indie bookstores, it is a limited one. I believe it has a limited potential because as we mentioned here before when it comes to buying ebooks online, it's all about competition to get a high rank on search engines and indie bookstores really have a small chance to compete in this field against Google itself, big chains, Amazon and even the publishers.

And even if the ebook sales channel will show some degree of success, I don't see how it will support the brick and mortar operations of the stores. As Mike Shatzkin explained it last week in his blog 'The Shatzkin Files': "Look at it this way. If you ran a bookstore and found that through Google you were able to sell more and more virtual goods while your brick-and-mortar sales were declining, would you invest what you were earning through the new and growing channel in the old and declining one?"

In all, as much as I would like to believe that Greenlight Books represent the majority of independent bookstores, I feel that they are an exception. A beautiful and loved one, but still an exception. As long as there won't be a more radical change in the business model of independent bookstores and a greater added value to offer to consumers, they will stay in the same troubled water with B&N, Borders and other book retailers.

More related articles:
5 reasons why independent bookstores shouldn't count too much on Google Editions

Can monetary incentives + local benefits generate a brighter future for independent bookstores?

Yours,
Raz @ Eco-Libris

Plant a tree for every book you read!

5 reasons why independent bookstores shouldn't count too much on Google Editions

Wall Street Journal reported yesterday that Google "is in the final stages of launching its long-awaited e-book retailing venture, Google Editions, a move that could shake up the way digital books are sold" (more details in the video at the bottom).

According to the New York Times, "Google Editions will allow users to buy e-books from Google or from the Web sites of independent bookstores, which have yet to find a way to compete with Amazon, Barnes & Noble and Apple on the electronic front."

The American Booksellers Association (ABA) reported that more than 200 independent booksellers could sign up. It looks like booksellers are happy about this new option that for many of them wasn't available until now. It's a great addition to independent bookstores, but we believe independent bookstores shouldn't cont too much on Google Editions. Here's why:

1. Competition with Google and other sellers - According to the WSJ, "users will be able to buy books directly from Google or from multiple online retailers—including independent bookstores". It makes sense that most ebook buyers will just google the title they want to purchase and then go to the first result they receive on their search or the cheapest one. None of these will probably be independent bookstores. This sort of competition with Google itself and other sellers with more internet and SEO expertise means that most traffic to the independent stores' websites will be from their own loyal customers.

2. Google has no real incentive to support sales in Independent stores - Google is making more money of each sale made directly from Google, as they need to share the revenue with the bookstores if the purchase is made through their website. Therefore, Google doesn't have a real incentive to support sales in the stores and won't help them to win more sales as it will be eventually on Google's account.

3. It won't help their brick and mortar sales - Google Editions may provide them with some more income, but still far from compensating for the continuing decline in sales at the stores. It doesn't provide customers with any incentive to go to the stores and therefore doesn't help the owners in figuring out how to transform the stores from a liability back into an asset.

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4. Amazon will fight back - The main threat here is to established retailers like Amazon that will surely fight back to keep its customers at Amazon.com. And when the fight is between Google, with no experience whatsoever in online retailing and the independent bookstores on its side and Amazon, maybe the most successful online retailer, I'm not sure if I'd put my money on Google.

5. It's too small to stop the bleeding - Cathy Langer, the lead book buyer for the Tattered Cover bookstores in Denver, told Julie Bosman of the New York Times she had been waiting for the introduction of Google Editions with "great anticipation." “I always say that indies need to be players in all parts of the game, so this is going to be great to bring us into the e-book game in a reasonable, affordable way,” she said. “We would like to make a little money off of it. But we have got to stop the bleeding.” She's right - the Google Editions is no more than a small bandage given the relatively small market share (yet) of ebooks and the small chance this platform will bring new customers to the store. For the independent bookstores, the search after the right bandage is still far from an end.

Google's long-awaited Google Editions online bookstore appears closer to coming online. Rex Crum talks with Amir Efrati of the Wall Street Journal about what Google's entry means for the online book market.

For more information on Google Editions see the WSJ video with Rex Crum talks with Amir Efrati of the Wall Street Journal about what Google's entry means for the online book market:

More related articles:

Is there a future for Barnes & Noble and Borders bookstores? Is it a green one?, Eco-Libris Blog

Can monetary incentives + local benefits generate a brighter future for independent bookstores?, Eco-Libris Blog

You can find more resources on the future of bookstores on our website at www.ecolibris.net/bookstores_future.asp

Yours,
Raz @ Eco-Libris

Eco-Libris: Promoting sustainable reading!

Borders is closing stores, adding Google tools and teaming with MeetUp - Is this a winning strategy? Probably not..

I read yesterday on GalleyCat that Borders Group plans to close 17 Borders superstores nationwide after the holidays including one in Michigan. They also mentioned that Borders announced "they will use Google’s Local Availability tool and Meetup Everywhere to create a more interactive shopping experience."

The reason Borders is taking these steps is obvious - Borders is in trouble (On the second quarter Borders Group lost $46.7 million - this was the fifth time in six quarters they posted a loss) and is trying to cut costs and find a strategy that will transform its brick and mortar stores back into an asset.

But is using Google's Local Availability feature and teeming with Meetup the strategy that will make Borders' remaining stores stronger and revive the company's profitability? I don't think so.

Mike Edwards, CEO of Borders explained these steps in their press release:

"Borders has recently introduced a number of customer-focused programs designed to create an exceptional shopping experience both in-store and online. Google's Local Availability feature is yet another great service we're offering that enables our customers to quickly search for a book at their local Borders store. We're making it easier than ever for customers to find the perfect gift when they are on the go this holiday season.

We're also excited to team with Meetup to provide our customers with the ability to find our enriching in-store events and organize their own activities at Borders. Our stores are natural community hubs, where our customers gather together to celebrate books — our participation in Meetup will be a great avenue for fostering an even stronger sense of community around the joy of reading."

The Google feature can be valuable, but it has more potential to boost online sales rather than sales at stores. The collaboration with Meetup is also a nice idea, but Borders stores as 'natural community hubs'? somehow it sounds more natural when we're talking about local independent bookstores and not stores that belong to the second largest book retailer in the U.S. I can understand why Borders wants to become a local hub, but I really don't think it will happen as is not a natural part of Borders' DNA, no matter how you look at it.

In all, my conclusion is that Borders is still far from having a solid strategy for its brick and mortar stores. They're trying, no doubt about that, and it looks like they're even trying harder than B&N, but it's not enough. To maintain their position in the book retail market they'll have to come up with a much better strategy. Until then, we'll probably see more Borders stores closing.

More related articles:
Is there a future for Barnes & Noble and Borders bookstores? Is it a green one?, Eco-Libris Blog

Can monetary incentives + local benefits generate a brighter future for independent bookstores?, Eco-Libris Blog

You can find more resources on the future of bookstores on our website at www.ecolibris.net/bookstores_future.asp

Yours,
Raz @ Eco-Libris

Eco-Libris: Promoting sustainable reading!

Yours,

The future of bookstores - business as unusual, local solutions and positioning for success

Three articles I read in the last couple of days reflected three different perspectives on the present situation and the future of Independent bookstores:

1. Business as Unusual - I learned from Publishers Weekly last week that NYC indie bookseller McNally Jackson will be getting an Espresso Book Machine, which prints POD books while you wait, by 2011.

Why this is business as unusual? The New York Observer explains:

Currently McNally will order a book for a customer if a desired copy is not on hand. With the EBM, the store would be able to print one out right there. Buyer John Turner sees the machine as a way to expand inventory. It also reduces the hassle and wait time associated with ordering books by request.

The idea is very simple - adding a tool that can provide readers with the capabilities of Just In Time (JIT) inventory that is even better comparing to what they can get when buying over the Internet, as it's faster and might be also cheaper.

The Espresso Machine is not a killer app, but it's certainly an important addition to brick and mortar bookstores that want to compete in the digital age and meet the needs of readers that are shaped by the speed and the easiness of the Internet.

2. Looking for local support - Portland Tribune had an article about the challenges booksellers in the city are facing ("Booksellers face the E-challenge"). Portland is well known for its love for books and bookstores. According to a study mentioned in the article, per capita Portland had the eighth most bookstores in the nation.

Booksellers who were interviewed for the article talks about their difficulties because of "a rocky economy and the rise of E-books." The booksellers in Portland understand there's a need in change, but not sure what to do - Sellwood bookstore owner Karin Anna says for example that “I think we will have to change. How to do it is the question.”

Their direction though is very clear - looking for support of their community. Roberta Dyer, co-owner of Broadway Books in Northeast Portland, explained:

“There are certainly fewer of us (local bookstores) than there used to be. Those of us who have weathered the storm so far have found support from the community and in our little niche in the neighborhood. We have a loyal customer base.

The only problem is what you do to not only keep this base, but also to increase it. It's very clear that no matter how supportive the people in the community are, they will have increasing temptations to use other channels for their book purchasing, whether it's because they start reading e-books or they look for cheap deals online.

Prof. Charles Heying, a Portland State University professor of urban studies and planning, whose book “Brew to Bikes: Portland’s Artisan Economy” will be published in October by Ooligan Press, said in the article that "People here [in Portland] still appreciate the touch and feel of a book" – but is this enough? can bookstores in the city rely on it? I am not sure.

I believe looking for answers locally is the right way to go, but bookstores in Portland, as well as in other places, need to redefine their business model and provide more value to their customers to keep their business thriving. And by more value I don't mean more of a good feeling, but real incentives.

Couple of weeks ago I suggested here a model that will provide bookstores customers with both personal monetary benefits and the feeling that they're contributing to the prosperity of their own community. This model is based on creating a collaboration with other local businesses to enable these businesses to provide customers with discounts for each other.

This is just one example, but I believe that many more models can be developed on the basis of a win-win strategy that will provide customers with more than just appreciation to their local bookstores. Appreciation and even connectivity, which Prof. Heying talks about, might be good for now, but definitely far from being enough as the customer value proposition of independent bookstores for the near and long-term future.

3. Positioning for survival and success - Jolie Bosman reported yesterday on the New York Times ("Bookstore Arrives, and Sides Are Taken") about a new bookstore, Books & Books, that recently opened its doors in Westhampton Beach, N.Y., stirring animosity in a town that already had an independent bookstore.

The article is presenting the questions whether there was a room in this little town for another bookstore, when the older one, the Open Book, is already struggling. Right now, it seems that the two indie bookstores are in sort of a fight between them, which is of course bad for both. Don't get me wrong - competition is good, but fight is bad. In this situation, it may well be that as one of the residents there, James Kramon, predicted, both stores be here a year from now.

So what's the solution? Positioning. If there's a room for two bookstores in Westhampton Beach, it will be just if both will be positioned differently. If both bookstores will offer the same products, atmosphere and buying experience than there's a good chance one or even both won't make it. But, if each of the stores will have a different feels, it can work. In times of growing challenges, both the Open Book and Books & Books should look one at another as an opportunity and not as a risk. This is their way to success.

Yours,
Raz @ Eco-Libris

Eco-Libris: Plant a tree for every book you read

Doom and gloom for independent bookstores? Not in New York!

Last Thursday we were all doom and gloom about Independent stores and called them to prepare a war plan. Well, it looks like there's at least one place where the sun shines over independent bookstores. It's called New York.

Yes, in the Big Apple, one of the meccas of independent bookstores, things seem to work much better for indie bookstores according to New York Magazine. In a special feature about New York City indie bookstores, entitled "Indie Bookstores Rising" New York Magazine is presenting what they call "an indie-bookstore renaissance," with new bookstores like Fort Greene’s Greenlight Bookstore (see photo above), Williamsburg’s Book Thug Nation, Dyker Heights’s Boulevard Books, and Mast on the Lower East Side, among others

What makes NY different from all other places? New York Magazine explains:

"Contributing to the resurgence is the local-is-better ethos, which has bled over from the culinary and fashion worlds, causing readers to crave a more human-scale shopping experience. And the specter of a world without indie bookshops has inspired a new, perhaps quixotic generation of entrepreneurs to jump in. The new booksellers bring a modern approach to the business: In place of the dusty riots of yore are more curated, well-lit shops that emphasize personal service and community—book clubs, readings, charity projects, and even the occasional lit-geek basketball league."

So what we see here is a blend of readers with local preference and stores that provides unique added value to their customers. Combine these elements with strong communities and a large market of readers and you've got a success story called New York.

Can it work in other cities as well? I wish I could say Yes for sure, but it seems to me that the Big Apple is a unique place and in other places indie bookstores will have to work very hard to create such an indie-bookstore renaissance.

Here are some of the interesting pieces you can find on this interesting feature:

Book-o-nomics: Maybe the most interesting part, as it reveals how much money a bookshop makes. In this case it's Greenlight Bookstore that shows how it turns an average monthly profit of $11,706.27. Kudos to Greenlight Bookstore for their radical transparency!

Cover to Cover - The new (and renewed) guard of independent bookstores in the city.

Where the Pros Go - New York authors’ favorite indies. Colum McCann, for example, can't pick just one: “If I had to choose from Housing Works, the Corner Bookstore, Crawford Doyle, Three Lives, 192 Books, or the Strand, I’d pick them all. I’d smash them together and give all the books a chance to flirt in a new neighborhood.”

Bound for Your Bedstand - Booksellers recommend their most eagerly anticipated titles. For example, David Franklin of Strand Book Store (our partner!) Pick is: Salman Rushdie, Luka and the Fire of Life (Nov. 16). “All of Rushdie’s work has an aspect of fantasy—this one goes a little further.”

Got Any Buddhist Police Procedurals? - In a city of enthusiasts, there’s a bookshop for every taste.

Seller’s Market - What used bookstores (and eBay customers) will fork over for three previously loved titles.

Yours,
Raz @ Eco-Libris

Eco-Libris: Promoting   sustainable reading!

Independent bookstores need a war plan and they need it now!

The news in the last 48 hours on the closing of two independent bookstores, Tree House Books (Holland, MI) and Rodney's Bookstore (Cambridge, MA) got me to realize it's time for independent bookstores to prepare a war plan.

There's nothing new in the fact that independent booksellers are struggling, and not only in the US. The Guardian reported in February that in the U.K. independent bookshops closed at a rate of almost two every week over in 2009. In Vancouver, Canada, After 53 years in the business, independent bookstore Duthie Books closed its doors last January and in April another bookstore in the city, Sophia Books, was closed.

So why War Plan? Because it doesn't seem like this trend is going to reverse itself any time soon. And if independent bookstores want to stop this trend, they have to act fast and they need a war plan, because this is a war and their survival is at stake.

Couple of elements that are crucial for the success of this plan:

1. Awareness - Independent bookstores have many loyal customers, but probably not enough. At the same time, I'm sure there are plenty of readers out there that will be happy to consider supporting them because they like these bookstores, what they represent and their contribution to the local economy and community.

2. Personal Benefit - To move people from condition of awareness to action you need to provide them with some sort of added value or personal benefit. This is a must. You can't just rely on the fact that people like bookstores - they won't show up in big numbers if it won't be worthwhile.

3. No trade-offs - Most people don't like to pay a price even it's for something they believe in. For example, a survey conducted by researchers at Stanford University found that 76 percent favored government limiting business’s emissions of greenhouse gases. At the same time, large majorities opposed taxes on electricity (78 percent) and gasoline (72 percent) to reduce consumption. So my conclusion is that if you want to drive people to do the right thing, you need to create a win-win strategy with no trade-offs. Staying only with the small minority who don't mind these trade-offs is not an option anymore. How do you integrate these elements into an effective yet realistic war plan? Well, that's the real challenge here.

Couple of weeks ago I suggested here a model that will provide customers with both personal benefits and the feeling that they're contributing to the prosperity of their own community. This model is based on creating a collaboration with other local businesses to enable these businesses to provide customers with discounts for each other. I think that if you add to it a creative awareness campaign, this model can definitely be considered to be part of the war plan.

In any case there's a need to act fast. "Publishing is changing fast, bookselling is changing fast" said Skip Prichard, Ingram CEO last week at BookExpo America in a 'A CEO Panel: The Value of a Book'. He is certainly right and I believe there's a real urgency here - the sooner independent bookstores will prepare their war plan, the better their chances are to win this war.

You can find more resources on the future of bookstores on our website at www.ecolibris.net/bookstores_future.asp

Yours,
Raz @ Eco-Libris

Eco-Libris: Promoting sustainable reading!

What's the connection between 18 miles of books, Julie and Julia, Robert Pattinson and Eco-Libris?

In one word: Strand.

Yes, we just wanted to remind you that if you happen to be in New York and you look for a good bookstore, then Strand Bookstore is your place.

Located in 828 Broadway (at 12th St.), this New York's independent landmark bookstore is not only one of most famous bookstores in the world (Did you know that Nora Ephron shot a scene from the movie Julie and Julia at the Strand, or that Robert Pattinson plays Strand employee Tyler Hawkins in the new movie, Remember Me?), but also a partner of Eco-Libris.

Strand are taking part in our bookstore program and customers at the store can plant a tree for every book they buy there and receive our sticker at the counter! And just to make sure you won't forget about the option to green up the book/s you just bought, you'll find next to the counters this reminder:

So if you're in New York, don't forget to visit Strand. With their tremendous selection of more than 2.5 million used, new and rare books, I can assure you a great experience!

Strand's address: 828 Broadway (at 12th St.) New York, NY 10003

Website: http://www.strandbooks.com (and don't miss their impressive list of events).

Yours,
Raz @ Eco-Libris

Eco-Libris: Promoting sustainable reading!