Harry Potter, the Loss Leader & Your Independent Bookseller
Did you know that discount chain stores and buyers’ clubs can often sell Harry Potter and other bestsellers for less than an independent bookseller can buy it for?
I’m asking you to consider supporting your local independent bookseller if you buy Harry Potter and the Deathly Hallows - Book 7 in the series. Read on to find out why.
Harrry Potter & the Independent Bookseller
As a writer, the advent of a new Harry Potter book sparks a touch of admiration and perhaps even envy of J.K. Rowling’s success. How about your local independent bookseller? You may expect independent booksellers are jumping for joy and laughing all the way to the bank. In the words of the song - “It ain’t necessarily so.”
As an ex independent bookseller myself, HP7, as the latest book is referred to in bookseller shorthand, is not an automatic boost to the bookseller coffers. Why? Enter the loss leader.
Harry Potter & the Loss Leader
As evil as Voldermoort himself, the loss leader is a book which is sold for less than the bookseller can buy it for. Yes, folks - that’s Harry Potter, Ludlum and any of the high volume, high profile new release titles. Big discount chain stores and buyers’ clubs sell bestsellers at a loss to attract customers into their stores.
For a big store it pays as the customer buys other items, possibly even big ticket items. For a small independent bookseller, it just doesn’t add up. Do the maths. Selling a book for less than it costs is not good business sense. Other options are to sell it at cost price or sell it at full price. It depends on how loyal your customers are.
Independent Booksellers are Business Owners
Independent booksellers are small business owners. They are the people who help you choose a book for your child. They give personal service and know and love books. I’m not saying that the large chains don’t have staff who love books or give useful advice. If you saw “You’ve Got Mail”, I’m not talking about that either, as that was a feel good movie, but a fantasy version of real life business in a bookstore.
Business in a bookstore means you need to make a profit. Freelance writers will understand that. Just as you wouldn’t write for nothing or for pennies, so someone else can make a profit, booksellers aren’t too keen on selling a book at a loss just to keep faith with their customers. If they sell it a full price, they risk being incorrectly branded as ripping off their customers, because people see it cheaper almost everywhere else.
Harry Potter - A Boost to Children’s Reading
Most booksellers would agree that Harry Potter has been absolutely wonderful. It has got children interested in reading again. Harry Potter is a great example of effective marketing. To add to the hype and secrecy, we had to sign embargo agreements not to open our stock sealed in black plastic until the exact nationwide agreed time for fear of legal action.
However, please spare a thought for your local bookseller when you come to buy your latest Harry Potter. If you can, consider supporting your local independent bookseller by purchasing the book from them, especially if you already have a relationship with them, and they go the extra mile for you all year round. Harry Potter 7 is likely to be the year’s most important book busines wise for your local independent bookseller. There are less and less independent bookstores around as seemingly every day, yet another one closes. If you can’t, no one begrudges you getting the best deal or making your dollars go further.
My Article About Loss Leaders in Publishing
I invite you to read an article I wrote about loss leaders in the publishing and bookselling industry. It’s a brief but interesting behind the scenes look at how it all works. As I haven’t found a plugin which allows comment on my pages (as opposed to posts), I’d love you to come back to this post to add your thoughts. There’s always more than one point of view, so please join in.
Let’s talk Harry Potter
What impact has Harry Potter had on reading? Were the movies as good as the books? What’s happening to celebrate the release of the latest Harry Potter in your bookstore, neighborhood or house? For the record, Book 3 - Harry Potter and the Chamber of Secrets was my favorite, and I much preferred the books to the movies.
It’s an interesting perspective and an argument that could probably be made for almost any popular product.
Hi Laura - That’s true. I can see it from both sides of the fence - buyer and bookseller. From the bookseller’s perspective - books are a bookseller’s core business and Harry Potter is the biggest book of the year. People wonder why so many independent booksellers close down. For some it may be poor business practices and any other number of reasons, but losing key sales of its major product of the year is very tough on a small business. I was lucky that I had loyal customers.
You can appreciate the quandry of a bookseller who goes the extra mile for customers all year round, who has to sell the book at full price or near full price to keep afloat, only to find customers think they are being ripped off, because they can get it much cheaper (below cost price) from a buyers’ club. That losing faith with customers can often be just as damaging to a business as the financial loss, so it’s a tough call.
As an English teacher, the Harry Potter books have had a tremendous impact on being able to teach story structure. If one looks at each book there is a full plot structure. However, if you look at the series as an entire book (with ups and downs) you will see that the entire series is a plot structure with the 7th book as the climax (I am hoping, as I have not cracked it yet…have to review book six still).
I do agree that independent book stores lose out on the profit of books like these but if they are smart they can capitalize on the marketing like a bookstore near me did. They were wise and hosted a costume party on the day of the release. The kicker was that you had to purchase your book from them.
Pickel - Great to see you here. The books are very cleverly written and certainly are fast paced with plenty of action. Bookstores can have some fun with promoting the book and I have seen some very innovative approaches. This can have added benefits apart from financial in terms of building ongoing relationships with customers.
Dear Yvonne:
Really nice to get a chance to talk to you again. Mary Emma Allen connected our blogs on old Harry and retailing for us. (Mine is at www.sharingwithwriters.blogspot.com. Hers is at www.maryemmallen.blogspot.com. ).
Seems you and I may have some retail background that gives us a perspective on bookselling that others may not have. Yes, support bookstores. Especially the ones that support authors of all kinds, not just the famous ones. If we don’t support the newbies, we miss a chance to broaden our interests and keep replenishing the supply of great reads.
Best,
Carolyn Howard-Johnson
Author of THIS IS THE PLACE, HARKENING, TRACINGS and the HOWTODOITFRUGALLY SERIES of books for writers
The problem in supporting my local bookstores are that the difference in price are large to be ignored. For example, Carrefour (http://en.wikipedia.org/wiki/Carrefour) are selling HP7 for RM70~ but one of the famous bookstores here sold HP7 for RM100+ which means the difference is about RM30.
With RM30, I can do so many things and I know many would opt to buy from Carrefour and other big chain stores in country.
The best is, I don’t read any Harry Potter series. I
Carolyn - Great to see you here again. I hope you will be a regular visitor. I’m enjoying exploring your site too. Independent booksellers are indeed great supporters of local authors.
HI Abdul - When the difference is significant, it’s a bit tough. BTW - I didn’t know they had Carrefour in Malaysia. You’ll just have to wait till it’s available from your library. One library near us has 100 reservations already for HP7.
I still have to read Book 5 and 6. I loved Book 3, but was not keen on Book 4, so fell behind with reading them.
Hello all,
As a freelancer graphic designer and writer, I can sympathize with the small business owner. May I suggest strategic partnerships as a way to share the cost of doing business? I have been a member of the American Advertising Federation, a 100% volunteer professional organization - and therefore, non-profit. I’m not fond of asking for donations, so I have learned to think in terms of partnerships out of necessity. Find another small busniness whose customers would also enjoy your services, and whose services YOUR customers would enjoy, and link up! It becomes a win-win for both sides, and everybody saves money while increasing sales and brand awareness. I hope this helps.
Katie - That is great advice. I agree strategic partnerships with complementary businesses are the way to go. A lot of business owners see competitors as adversaries, when there are actually often opportunities to network and work together. Thanks for joining the conversation.
Jul 20th, 2007 at 9:42 am
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Jul 22nd, 2007 at 5:08 pm
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