I realize there is something innate in us (those of us who laughably call ourselves independent merchants) that spurs us towards secrecy but I worry that secrecy isolates us as a profession and does not serve our customers, or the books business at large, well.

I hope it might be helpful and provide some encouragement to other booksellers if I, and a few other booksellers, opened up a little bit about how things are actually going these days.

We started out in a basement location 23 years ago, ignorantly renting the cheapest space available in one of the least viable commercial areas of our city and our first year in business sold under $10,000 in books (but, amazingly, never lost money).

The next year we tripled our gross sales and the year following that we doubled them again (but only because we operated booths at flea markets and sent customers to our store.

I heard later from other dealers that they were sure we would not make it in this business but I never had any doubts so sales and locations just grew and grew year after year … until April of 2010 (a year and a half after the people who worship money caused the latest financial collapse).

We have only had one really bad month during 2011 - in May when our sales compared to last May were down to 92.85%. January at 96.27%, July at 96.2% and August at 95.47% were our other down months. We were pretty much even with last year during February and June and it looks like September will match last year as well so it looks like the increases in March (105.66%) and April (105.91%) were not a sign the worst was over … rueful smile.I expect the last three months of the year to be slightly better than last year’s because two weeks of unusually harsh weather last November (and November is traditionally one of our worst months - because the Christmas shoppers don’t come to our stores until December) caused sales to drop to 85.46% of the previous November.

All in all our sales have been relatively flat since April of 2010 - I hope everyone else out there is doing better but in talking to publishers’ reps, internet sellers, flea market sellers and the few other used books sellers I visit in their stores - I have been told the fact that our sales are flat (rather than down) makes us seem very fortunate to them.

One rep yesterday told me that “flat” is the new “up”.

Naturally our expenses keep going up like everyone else’s - landlords need to recoup the increases in their common area maintenance costs, computers and office supplies need replenishing and employees always need raises - so having sales flatline, even if everyone else’s sales are going down, does not bode well for any business.

About ten years ago when our business had a slowdown I came across two books which had the same theme - a concept we should have been taught and reinforced each year through grade school - “When bad things happen in your life - welcome them!”

Ever since that time, when things go wrong I get excited.

I know that this is my chance to grow personally and to grow my business because I have to really apply myself to overcome whatever difficulty that has presented itself.

And, selfishly, I know it is just another reason that someone else will use to quit trying.

It is amazing what a person or a company can do when they are forced by circumstances to slam on their brakes and re-evaluate their situation.

Telling myself “I am just going to work harder!” has always been like an “Open, Sesame!” for me. When we buckle down the world almost always opens doors for us – and if we don’t … well, either way there are consequences.

We had started to look for a warehouse location in September of 2009 when we realized our inventory of well over 500,000 books (many of them single titles)  would soon become unmanageable if it was not centralized and brought under control. We were determined to build both a more efficient book buying system and a distribution system to co-ordinate our stores and better serve our customers but the changes were necessary;

(1) To cut down on the workload the daily influx of up to 2000 incoming books loaded upon our store operators - to free them to become more expert in their jobs and to allow them to spend more time helping our customers.

             (a) We knew the data entry required to catalogue our inventory was necessary but it was also keeping all our staff distracted and preoccupied - that had to be brought under control.

(2) To control how many copies we own of each book.

             (a) It is important to have many copies of the books that sell regularly but overstocking of many titles with only sporadic saleability was rampant.

We started building 12 foot high bookcases in January 2010 and by December 30th we had transferred almost all the books scattered throughout the backrooms and basements of our four retail store locations were moved into our warehouse location across the street from the Chinook C-Train Station. And we opened another retail store in the front of the warehouse in March, 2010.

As of today we feel confident that the many extra hours of work this year have made us a much better brick and mortar store organization with major growth possibilities going forward. Our business is much stronger than it was a year ago even though our annual sales improved only slightly.

Our mission is to help spread literacy by providing easy access to books. We will continue to build and improve our books stores to serve the wants and needs of Calgarians and their visitors.

Have a great 2011 everyone!

Since April our sales have been stagnant and have even dropped below comparable months the previous year on a couple of occasions. This is a new experience for us and we have spent much time working harder while searching out excuses.

The best we can do is point to the general doom and gloom lapped up and then lavishly spread by the worldwide media and the added confusion the ebook digital publishing phenomenon has caused.

While I, like most men, love gadgets this one has been goring my own personal ox. After months of studying the situation it seems to me that the ebooks will spur more people to read. That should be good for the brick and mortar books stores that survive until the initial infatuation with the novelty passes.

It will take a while for the different formats to establish dominance and even then the one or two that survive will likely have some built-in obsolescence so media purchased and installed on one machine won’t be transferrable to another. That was recently revealed to me at an Apple workshop when a fellow who had bought a new iPad found that the media he had accumulated on the old one had to be repurchased and installed on his new one.

It could be an interesting and troublesome few years while the book business sorts itself out and I think there will be many casualties. New and used independent books stores operated by hobbyists or operated by people who are not aggressively expanding and pursuing new markets will have trouble surviving - and they will be missed!

Tough times never last, but tough people do!

As a young man I had no idea learning poker skills would have much relevance in my life - at that time it was more a matter of “beating the other guy” because the stakes were generally low and none of us was going to gain or suffer much financially. It took only a little study to learn that a pair of Jacks was a good hand in head to head action and generally a bad hand when 5-6 other players were involved. The big difference always seemed to be - no one else in these “friendly games” took the time or made the effort to learn even that much about the game.

The book business is the same!  Most of us get into the business because we are “book lovers” and few of us ever get beyond that point.

It takes years of persistent effort to build a viable book business. Building up an inventory diverse enough to satisfy a customer base large enough to sustain a business is the key.

If you find yourself posting a sign in your window that says “NOT BUYING BOOKS TODAY” you are a book lover announcing to the world you realize the business has become too much for you. Remaining in the game with no chance of improving your hand (inventory) is suicide. The customer who came in yesterday knows they won’t have to bother coming back any time soon if your inventory is not changing every day. If they don’t sense there is some energy and movement they will perceive little is happening in your shop. The ante (rent and all other overhead) will eventually drain all your resources.

If you find yourself sitting behind your desk reading a book you are a book lover hiding from all the work that can and has to be done to make your store better for prospective customers. And there is a ton of it! There are at least sixteen other hours available to invest in reading a book. Working hours are not reading hours

… they are also not hours for chatting on the telephone! I have visited a local bookstore twice during the past 2-3 years - both times the lady was on the phone the entire time I was in the store - only briefly stopping to ask what I was looking for. It is not surprising that each time I was the only person in the store.

To be good at anything takes work, research, attention to detail, practice, patience and perserverance. It seems like a love of learning should be second nature to a book lover - so studying all the facets of what it takes to operate a bookstore should be interesting to them.  Then why is it such a rarity in book store operators?

Is that why our numbers are shrinking and a non-book business like Amazon can increase its dominance until it wipes out all the so-called book store operators who are feeding it?

The new books sellers are squealing like stuck pigs as AMAZON advances while the “brilliant” (in their own estimation) internet sellers are scrambling to outsmart each other and glean the last little bit of gravy available to send to Amazon and contributing to their own demise.

Serving your local community is your best way of assuring your success – but it isn’t easy!

This last year’s search for the shiny penny that will allow everyone in the book business to fool themselves into thinking they can remain asleep turned out to be the e-book.

I love gadgets as much as anyone and after researching as much about the e-book as I can – I like it! Unfortunately those processing the content (corporations  with publishing companies and their ilk among their assets) seem determined to stay on board and continue coasting until the last last straw finally slips through the fingers of their do-as-little-as-necessary hands.

I think the e-book will be a catalyst to revive the book business … eventually

Someone, who is probably not presently directly engaged in publishing, will eventually come along and rejuvenate the book business using the e-book as a valuable tool in their arsenal – but it won’t be the existing publishing business as we know it – they have been fast asleep too long while the world has changed around them.

Air miles made it possible to fly business class to Denver and then economy class to LaGuardia so the trip on United Airlines was pleasant.

Finished a book during the flights,  – “Rebel Bookseller: How to Improvise Your Own Indie Store and Beat Back the Chains” by Andrew Laties, 2005. Lots of good ideas and interesting insight on various aspects of the book business – dealing in childrens books sales, The American Booksellers Association, remainders, etc. It was a quick read

After 21 years in business the book business still fascinates me – especially now with all the negativity attacking it from just about every direction. It’s almost as though there is a grand design to limit accessibility to the printed word. Those few of us that read regularly find it difficult to believe most of the people in North America don’t read – and many can’t read. How could happen in our social circumstances? By law, every child has to attend school until they are 16 years of age – shouldn’t learning to read be THE priority?

Shouldn’t we all be shouting – “I’M MAD AS HELL AND I’M NOT GOING TO TAKE IT ANYMORE?” If a child can’t read fluently by the time they are in grade 6 shouldn’t everyone in the school district be fired? “It’s appalling — it’s really astounding,” said Michael Gorman, president of the American Library Association and a librarian at California State University at Fresno. “Only 31 percent of college graduates can read a complex book and extrapolate from it. That’s not saying much for the remainder.”

The most prevalent theme at the convention was E-Books and how they are becoming so popular. It seems obvious that the publishers are panicking under the heavy load of returns foisted on them by the big box stores and they see the attractiveness of the “print-on-demand” aspect E-books present.

I like electronic gadgets as much as anyone and know I would enjoy having my favorite books handy so the E-book idea appeals to me on that level – the fact I can afford it and still haven’t bought one makes me think about its negative aspects. I am still exposed to new books I would like to read and if I am bogged down by the ones I have already downloaded will that limit and inhibit the scope of my reading? – downloading a book is still not cheap. Do I want to contribute to the ongoing success of Amazon? – often seen as being the beginning of the end for the book business as we once knew it. Is it my imagination or do you too notice that Jeff Bezo’s laugh has a certain ring of deviltry in it? … smile.

I have to admit that I came away from the convention concerned about the future of the book business – what do you think?

From another website – http://www.humorwriters.org/startlingstats.html

The following statistics about book publishing and reading were found on www.parapub.com, the Web site of self-publishing guru Dan Poynter. They’ll give you an idea of what you’re up against if you want to write books for a living. 

1/3 of high school graduates never read another book for the rest of their lives. 42 percent of college graduates never read another book after college. 80 percent of U.S. families did not buy or read a book last year. 70 percent of U.S. adults have not been in a bookstore in the last five years. 57 percent of new books are not read to completion. 70 percent of books published do not earn back their advance. 70 percent of the books published do not make a profit.(Source: Jerold Jenkins, www.JenkinsGroupInc.com)

Some of the following  is some of my response to him and those of his ilk

·         My first thought is - how would anyone in the book business ever find the time to write a book … smile.

Yes, a business degree would be helpful to anyone in any business but I think the biggest reason for failure in our business is a failure to become aware of all the actual WORK that needs to be done to generate enough sales and enough repeat customers.

I have known a person with an MBA who bought an existing used books store and developed a great reputation – as a people person. Their inventory was mostly made up of books with cracked spines and there was often a “not Buying Books Today” sign on the door. They are no longer in the business.

Because it is a cash business ours is a relatively simple business. Pay the rent, utilities, and business license and then use all other monies to buy books. Don’t fritter away your money on food and clothing - because once people realize how much work there is to be done they won’t be in the book business long enough to starve to death.

Ideas for a more useful book? Write a book about what is a good book and what is a bad book. This will require years of experience and expertise you will only get by working a bookstore yourself.
Preach the importance of never passing up an opportunity to search through every box of books presented to you (dozens of reasons)… the importance of constantly culling your inventory (ask anyone in any type of retail business) … not letting your inventory grow stale … NEVER reading a book while in your shop (your customers will teach you anything you really need to know).

The “Never reading” aspect got the biggest response and was challenged – not surprising to me because it is a very radical concept in the eyes of a book lover who thinks they can be a bookseller. Any person who sincerely wants to be self employed serving others should expect to put in an honest workday of  8-12 hours at their craft. Reading books for your own pleasure is not work - studying your craft can be done in your leisure hours after all the work around the store has been done.

Come up with a guideline for how the categories of your books should flow throughout the store so customers browsing don’t become lost or confused. Why every effort you make to improve your store has to be hinged on customer convenience and satisfaction.

Why SPEED is an important consideration - if a customer can’t find their book quickly a sale might be lost. If your store is neat, clean and organized half the job is done - now keep every book in its proper place and have signs do the rest of the job. Books on the floor is ALWAYS UNACCEPTABLE and books topsy-turvy on shelves is a no no.

And on and on and on. WORK! WORK! WORK! If you are unwilling or unable to do it yourself you will constantly be replacing staff who will feel the same way.

                A.   Set and keep the regular opening hours established by other respectable retail businesses in your area.

                B.  Pay attention to customers’ buying habits and close attention to what they tell you regarding books and the book business in general.

                                a. They are the ones visiting the other stores with a buyer’s perspective.

                    b. Their compliments about different facets of other operators can be very helpful while their complaints about whatever anyone else is doing should fall on deaf ears. Join in the former conversations and never get involved in the latter chatter.

       c. Customers will tell you when other book stores clerks and operators speak negatively about us so you should be aware that type of talk will come back to bite you. Would you recommend looking for a book at that store to your customer? Dale Carnegie quote: “Criticism of others is futile and if you indulge in it often you should be warned that it can be fatal to your career.”

#2. Buy books with your present customer base in mind but occasionally buy unique “off the wall” books to dress up your store and make it more interesting.

A.     Buy aggressively – you can never have too many copies of a salable book – just stop buying when demand for that book falls off – by then you will have realized that book’s profit potential and often a good book will have residual sales or a resurgence in the future.

a.       Being aggressive will sometimes open you up to criticism from others – here is an excellent blog on the subject http://www.elliacommunications.com/blog/?p=140

B.      You are there as an agent for your customer – to do less than your best is a disservice to them.

#3. Treat your staff well in a manner in keeping with teaching them character and responsibility.

A.      During our twenty years in business we have very little absenteeism and only occasionally have we had someone prone to being late for work. Both situations effect morale in the stores so we quickly talk to any offenders and usually that remedies the behavior.

B.      Everyone is told to take care of their own best interests first - because as a business that is what we have to do in order to serve our customers.C. I have had dozens and dozens of people tell me this is the best job they have ever had – I attribute much of that to their love of books but our consistency probably is a factor.

#4. Realize that as hard as you work to learn as much as you can – you will never know very much about books or the book business – it is too broad and too deep.

A.      This should be a comfort to you, as it is to us, because you can just relax and be yourself and not feel the pressure you should otherwise feel.

B.      Listen and your customers will tell you most of what is important for you to know.

C.      But continuously study everything you can about business, public relations and marketing because a business that stands still will soon drop over dead.

D. Being in this business is a privilege and deserves your dedication and hard work.

I write this not to discourage you - because the book business in North America needs, and can support, thousands of hard working operators. Unfortunately, most people who get into this business never overcome their passion for books to reach the point where serving customers’ needs becomes their primary goal.

#1. Only 10% of the population reads. About 50% of the people in North America are functionally illiterate.

#2. Only 10% of the reading population will ever buy books from a store identified as a used books store. Many of our predecessors have given our business a bad reputation and some of our contemporaries still  sit in their shops reading and smoking and ignoring all the work that is piling up all around them continuing a stereotype that will take many years to overcome.

#3. Our average book sells for under $7.00

#4. Our average customer spends $15 each and every time they make a purchase.

#5. We estimate the average customer returns 4 times a year … but a recent spot check kicks those numbers all out of whack (on the surface). In our recent check we had 8300 customers for the year – 5900 of them came in only once while only 109 of them came in 12 times or more during the year. The customers who either refused to sign up on our database or who were pressed for time constituted about 1/3 of our gross sales.  We counted those customers as one customer so that means only 2400 of our customers came in more than once.

#6. Therefore if the population of your buying area is 50,000 you should estimate you will have 500 customers spending about $60 each per year for a gross sales figure of $30,000. If you are in an area which draws tourists that can make a positive difference. I know of one relatively small store in a tourist area with annual sales in excess of $300,000. The fact that the operator is a workaholic probably plays a big part in his success.

#7. In order to sell $30,000 in books the sales value of your inventory should be $150,000 (about 21,000 books).

#8. The 80/20 rule (Pareto’s Law) applies to almost everything – if you have $100,000 in inventory only about $20,000 will be saleable. If you don’t understand the implication that that means you must continually buy books and upgrade your inventory – then there is little anyone can do or say to help you.

#9.  A small retail location is unlikely to ever generate a livable income for anyone – to sell $100,000 in books you need $500,000 in inventory or about 72,000 books. It is true they do not have to be all on display but they do have to be available to replenish your inventory every day

#10. Most of your present inventory is never going to sell – getting your book cases full of books is the easiest part – culling inventory takes experience, judgment and expertise.

#11. The first time you find any reason not to look through another batch of books is the day you should start considering getting out of the book business.

All these points consider the fact you will probably choose a store with low rent for your first location. To be of any real service to your customers you should continue buying as many books as you can and then move to a better location and start over. A store in a very good location will cost you 2-3 times as much rent but its gross sales should be 3-4 times higher.

I don’t really understand how someone can fail in this business but, obviously, it is a lot more difficult than it appears on the surface. 

“My own reading, my own experience and from studying the book business for the last 20 years from every angle I have been able to stumble upon - I have learned the best booksellers are not competition - they only complement and expand the book business in the long run and provide a real service to their communities.

The ratholes which used to call themselves bookstores are mostly gone now and we all owe a debt of gratitude to the rising costs of rents for their demise - but the stench they left in their wake still haunts some of us.

Our real competition is anything which distracts our customers and our potential customers from taking care of themselves and attending to what is actually happening in their own personal affairs - sports, sensationalistic journalism, news dealing with so-called celebrities, nonsense spouted by politicians and the inane repetition of the “news”.

In other words - anything that “distracts and stupifies” people is our competition.

Everyone who is working hard at building up the book business in and for your community is your ally - but those seeking “quick bucks” by shipping your community’s books hither and yon are doing the community a disservice, whether they realize it or not.

Anytime worthwhile knowledge leaves an area, with little likelihood of it ever returning, a community is diminished.

Start building or supporting the best brick and mortar stores in your community now and encourage them to work even harder at being a keystone to the community and providing all the service they are capable of - you and they owe it to your community.”

It is a bit disheartening to me that intelligent people think Amazon, ABEbooks, Alibris and almost all well known online book purveyors actually have books of their own.  IN ALMOST EVERY CASE THEY HAVE NO BOOKS OF THEIR OWN - their vast inventories consist of books listed by thousands of individuals working in their homes, people who operate strictly online by scavenging for books, small bookstore operators and large bookstore operators and by some vampire-like types who (like the online book purveyors themselves) have no inventory but make a living by marking up all the books they see online 7-10 times and more, listing them as their own, and when some unsuspecting soul places an order from them - they have a legitimate dealer ship it to the customer in question. So they do little or no work and wait for the money to roll in.

The online book purveyors, while they must be aware of this by now, just seem to tolerate it and take their cut of the commissions.

There are many ways to operate a book business - this is just a note on a few of them - and the sense that other booksellers are detrimental to your business is seldom going to be true.

But - if you don’t work your a** off you are going to fall by the wayside.