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BA slams 'damaging' Potter discounts

18.07.07 Philip Jones

Tim Godfray, chief executive of the Booksellers Association (BA), has slammed the "crazy" levels of discounts being used by retailers to flog the latest Harry Potter book. Godfray said the book industry had been "considerably weakened by this deep discounting".

The strong comments follow a day of extraordinary developments after Potter publisher Bloomsbury forced supermarket chain Asda to apologise for accusing it of "holding children to ransom" by raising the price of the final Potter book. After withdrawing its supply of the book, the chain apologised unreservedly and withdrew the comments.

In statement released yesterday, Godfray said: "There is undeniably something crazy here and in my view the book industry has been considerable weakened by this deep discounting.  Harry Potter has worked its magic on children around the world. The contribution the books have made in making reading among children ‘cool’ is huge – the spell has not yet been written to reverse the damage this discounting has had on the bookselling industry."

However, Godfray admitted that the BA could not interfere. "The publisher sets a Recommended Retail Price and it is up to the individual retailer to decide on the selling price."


STATEMENT FROM TIM GODFRAY -- CEO THE BOOKSELLERS ASSOCIATION OF THE UNITED KINDGOM AND IRELAND:

The forthcoming publication of the last in the Harry Potter series is not just a publishing event, it is a phenomenon.

 Harry Potter presents a wonderful opportunity to booksellers to celebrate books with their customers and to thank them for supporting their businesses.  From when the embargo is lifted at midnight this Friday, booksellers around the country are organising many fantastic events to celebrate publication. 

The report that Bloomsbury, publisher of the new Harry Potter book, has withheld supplies of the book from Asda is a commercial matter between the publisher and the supermarket.

As to the price at which Harry Potter is sold, by law the BA cannot interfere.  The publisher sets a Recommended Retail Price and it is up to the individual retailer to decide on the selling price. 

Booksellers want to ensure that they provide their customers with value, whether it be by putting on an event, say, at midnight, or offering keen prices. 

However, the deep discounting of this book is so prevalent and the price competition between retailers so intense that there are many retailers who will be using this as a loss leader rather than looking to make millions.  Indeed, at one end of the scale a bookseller as big as Amazon is saying publicly it is not making any money by selling this book and at the other the independent bookseller is often able to get supplied more cheaply by buying the book as a consumer in a supermarket than by purchasing it from book trade suppliers at trade prices. 

There is undeniably something crazy here and in my view the book industry has been considerable weakened by this deep discounting.  Harry Potter has worked its magic on children around the world. The contribution the books have made in making reading among children ‘cool’ is huge – the spell has not yet been written to reverse the damage this discounting has had on the bookselling industry.

From all the information received from booksellers large and small we know that many of them will not be making money from this book.  It would seem that on the financial front, only the publisher, the author’s agent and J K Rowling are benefiting. 


Retail Philip Jones harry potter Bloomsbury Booksellers Association BA Tim Godfray

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