Normally I don't like to go on too much about book returns, discounts etc as like to come from a that's-the-way-it-is-so-get-on-with-it camp, but yesterday it occurred to me clearer than ever that the book market, in times of global financial concern, is as much a threat to itself as from outside.
I received our sales and remittance reports over the last week and, unless their is some error, which is unlikely, around 60% of expected income was absorbed by recent returns from outlets (many of which from last year). How can you effectively plan as a business, particularly as a small company, when there is no guarantee who will receive even half of the money you have generated? With huge difficulty, near impossibility in fact.
Though over three years we have battled this and have managed to generate quite a few good additional streams of revenue (in fact it's probably not fair to call them 'additional' in this current environment). Whether from rights, talks etc, publishing services or from the several partnerships we've formed, it actually begs the sad question 'why bother with book sales?' when in that same time spent trying to sell every book possible, other income can be generated, permanent income.
I know what someone from an outside business persepective would say, but book sales are meant to be the 'bread and butter' of the business and what it's all about. Add into the mix that copies of Harry Potter are to be sold at £1 by the happy to loss-lead supermarkets, and we're in danger of the chains and other 'traditional' booksellers going out of business, and publishers either going the same way or turning their back on book sales and becoming middle agents of content and services (and, a separate question, where would that leave the agents and others traditionally involved in the publishing process?)
And all this from the rules set within the industry. While others are driven to distraction by global financial issues beyond their control, publishing needs to wake-up (although there are signs it is trying) and find a business model that works, as the current one doesn't. It's that simple. Otherwise, forget digitalisation and all other changes, it will simply bring the centuries old book market down from within.
Tom
PS am actually in a good mood today but thought it was about time for an honest comment piece - and please leave your comments whether you agree with me or not!