The Bookseller.com

7th September 2008

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Firm sale move could threaten range

21.11.07 Alison Flood

Hachette Livre UK's plans to move to firm sale on trade backlist have received a mixed response from booksellers, with some raising fears over range and backlist buying.

Writing on theBookseller.com indie bookseller Clive Keeble said he hoped other publishers would quickly follow suit. "The idea that booksellers should expect to freshen their stock by making returns and re-ordering is archaic, let alone wasted fuel miles and environmental considerations. Its poor practice to expect others to subsidise one's business."

However, other booksellers expressed misgivings about what it would mean for range. Waterstone's was circumspect, stating that while it was committed to investigating ways of reducing returns, it had to "ensure that any action that the industry takes does not threaten specialist booksellers' ability to stock and sell deep range".

This was also a concern for other booksellers; Sheila O'Reilly, owner of indie Dulwich Books, was particularly wary, saying it would mean she had to become more cautious in her backlist buying. "We have two sources for buying our stock—wholesalers or direct from publishers," she said. "If we buy from publishers we get less discount but full returns right; if we buy from wholesalers we get more discount and the right to return between 5% and 10% of our previous three months' sales. With most independent booksellers buying from wholesalers to ensure they have the best discount, this arrangement means that we are able to have a 5% error rate. I believe that this is as fair as one can expect. If firm sale comes in from all trade publishers, Dulwich Books, for one, will be dramatically more cautious in our buying of backlist."

Keeble responded: "Nobody should need a 5% error rate written into their supply contract."

Booksellers were however ready to discuss the idea of discounts, with any savings made by Hachette expected to lead to higher discounts for retailers. "It's very noble to share green credentials, but there would be a saving and I think our customers would like to share in that as well," said Bertrams buying director Chris Rushby. "Hypothetically, it's a reasonable conversation, but there would have to be extra discount to compensate us for the change in trading conditions." Foyles' Kate Gunning adds: We would expect more favourable terms in return, without a doubt."

Hachette c.e.o. Tim Hely Hutchinson admitted that discussions about discounts would "obviously" occur to booksellers, but stressed that they would also gain from any such move. He said: "It costs them money to send the books back and to order them again--it's an obvious piece of inefficiency."

Hachette Alison Flood Firm sale