Book distribution profits disappear

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The book distribution sector is losing its profitability, and looks likely to suffer further erosion as costs continue to rise, according to an industry-wide survey.</p><p>

The study of 11 book distributors carried out for the Independent Publishers Guild and the Publishers Association found that the average profit margin of 7% in the sector in 1991 had been whittled away to nothing by 1998.</p><p>

Increases in costs, investment in equipment and IT systems and the failure of sales to rise in line with cost increases were the main causes, according to publishing consultant Christopher Ga...

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