The Bookseller.com

5th July 2008

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PA: Publishers selling more for less

18.04.08 Tom Tivnan

Publishers are facing increasingly tight margins and are selling "more for less‚" as the price of books has fallen for the fifth year in a row.  According to the Publishers Association's Statistics Yearbook 2007, out on 23rd April, the overall average invoiced price of books fell to £3.50 from £3.59 in 2006. Home market books were £3.77, down from £3.85 in 2006, while export titles slid to £3.13 from £3.20 the previous year. The export market was particularly susceptible to price sensitivity, due to the "unremitting pressure‚" of the weak dollar.

Random House Group c.e.o. Gail Rebuck, in her overview of home book sales, wrote: "This year can be best described as one where there was more change but less chaos as publishers have had to learn to adapt to increased levels of discounting and the rise of the internet and supermarkets.‚"

Despite the pricing issues, the industry saw overall growth in both volume and value during 2007. UK publishers sold an estimated 855 million books, a 9% increase from 2006 (786 million), with the invoice value climbing to £3bn from £2.8bn. The export market was particularly strong, despite the weak dollar. Sales hit £1.1bn on 357 million units sold, a jump of 11% and 14% respectively over 2006.

In the year of Harry Potter and the Deathly Hallows, children's growth far outpaced every category. Unit sales in the sector shot up 17% to 225 million with an invoice value of £404m (2006: £302m). The Harry Potter effect was even more noticeable in children's exports, which leapt 71% in value to £129m.

There were sales increases in all market categories however; fiction was the next highest grower after children's, up 7% in volume and value to 229 million and £650m. The largest category, academic and professional, was the slowest grower, with just a 4% rise in unit sales and a 0.7% rise in value (£775m). The schools/ELT market rose overall, but sales dipped in the UK, with units sliding 9% to 24 million and value down 3% to £179m. Export sales were buoyant, however, jumping 10% in units sold to 132 million and rising 8% in value to £275m.

The rate of returns stabilised from 2006, standing at 9% of publishers' total gross unit sales and 13% of total gross value, a 3% fall and 0.5% increase respectively.

The yearbook is drawn from the PA's Sales Monitor scheme, which represents approximately 70% of total sales by UK publishers. It can be purchased from the PA at a full price of £100 or the trade price of £50.

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