Ideas to Help Bookstores Survive in the Digital Age

[taglines]

Publishers Lunch notes on its public newsletter this week:

Both formally and informally, booksellers at the American Booksellers Association's Winter Institute were talking about, and listening to, ideas for how bookstores can preserve their essential role during the digital transition and drive revenue from more than sales of printed books.

On Wednesday Dan Clancy from Google tried to open the door to brainstorming how Google can help retailers sell ebooks from physical stores. The starting principle is that "when you buy a digital book from a physical store, it needs to be simple."

A sample notion was to ask, what if it's as simple as taking a digital picture of the book's bar code with a phone (and credit the store for the sale). Though cards redeemable for ebooks (like Symtio's product) have not taken off and present limited inventory, he suggested there could be a kiosk to produce such cards. Most importantly, he underscored that if bookstores are capturing customer e-mail addresses it makes it a lot easier to sell ebooks or fulfill e and print bundles, since they can email the customer a unique link in order to download their ebook. And that emphasizes bookstores' core goal, which is "how do you maintain your relationship with the customer even on the device" instead of turning them over to the device manufacturer.

Clancy also believes "bundling is a key component in this blended world." (At the panel of publishing executives, however, Madeline McIntosh from Random House said they were still "wrestling with what is the value of that digital file" and are still stuck on the idea that giving away an ebook along with a print book, or selling it as a cheap upgrade makes it hard to "turn around and say that the ebook in and of itself has value, and we don't want our ebooks to be low priced.)

Clancy also predicated that "personally, I think the tablet--not just the Apple tablet--is the way of the future in ereading." To that end, ignoring the issues of small retailers selling expensive electronics, he speculated that stores could sell tablets and be established as the default place the customer buys ebooks from those units.

But Clancy did acknowledge that earlier visions of how the revenue splits might work for Google Editions has changed and while Google can help stores, it can't save them. "The margins on digital books are going to be less than the margins on physical books. Even if Google takes a small amount, the margin is still shrinking."

......

Food for thought, if nothing else.

[asjogren]

Once a customer starts with eBooks, why would they go to a physical bookstore? Before eBooks, if I wanted a book NOW I would go to the bookstore. If I was willing to wait a bit then I could checkout the library, used books, and eRetailers. But, with eBooks now is RIGHT NOW.

Another reason to go to a physical bookstore was to discover what I want to read. Browsing or advice are what I sought. Or, sometimes author readings and discussions.

So what can a physical bookstore offer me now?
1) used books and a book exchange: used books are less expensive and have more rights than eBooks
2) A knowledgeable proprietor who can expand my author list, "If you like Nevil Shute... you might like _____".


Unfortunately, I think the future of physical bookstores will be primarily used books along with supplying used inventory to huge eRetailers acting as brokers.

[K-Thom]

If a hoershoer would have asked one hundred years ago what would be the best stategy for him with all these new automobiles around, I would have told him:

"Forget about horses. Open a gas station."

Problem is, the gas stations are already there. Online stores which sell eBooks. No need for a physical eBook gas station, especially with UMTS wireless connectivity.

So I'd rather tell any bookseller:

"Tend to horses. Be the best around if it comes to horses. But sell automobiles and become an expert there too, just in case one of your customers with a carriage is asking."

People like to go to shops. They like to check out new gadgets by taking them in their hands, play with them, without buying them first. This is an experience no online shop can offer. That's the strengh of bookstores. Thery're THERE.
So a bookstore should keep a stock of different reading devices and present them to their customers. Amazon makes money by selling the Kindle, no by selling the eBooks ...

[ficbot]

A coffee shop, with a print on demand machine and wi-fi for downloading from an e-store.

I think the coffee shop, if they are smart, will be a branded coffee shop making recipes from the cookbook of the moment. I think cookbooks are one area where people might still prefer to buy paper so they can use the coffee shop to move certain cookbooks. I have also seen some bookstores develop large stationary sections. They could expand this to craft products and then run classes based on projects from certain books (at which point you would want to buy the book).

I do like the idea of having a used book inventory as well.

Fwiw our local major music chain seems to sell more dvds and video games than actual music cds these days...

[Guns4Hire]

You know I don't buy pBooks anymore. I can't even remember the last book I bought. But I still go to the bookstore at least twice a week (I like bookstores). Sometimes I go and browse other times I just go order a coffee and read my eBook.

Bookstores are a long way off from disappearing. We eBook readers are a small minority (that will obviously change) but pBooks may never disappear. The majority prefer them. Whatever the future holds its a ways off and there is nothing wrong with a physical bookstore optimizing for their customers.

Would I buy an eBook from a bookstore. Depends on how easy it was and the price. It all comes down to convenience and price.

[guyanonymous]

I think the ideas here - a coffee shop, experts on readers (and getting books onto them), print-on-demand services - those are excellent ideas. Because they are SERVICE oriented and SOCIALLY oriented services.

That's the new type of market out there - connecting people, and helping them in areas that an FAQ just doesn't suffice.

Perhaps they won't be bookstores then - but instead will fill the realm of socially-based information exchanges. Putting coffee-bars in libraries, as I understand it, is a new trend that is showing positive gains for those libraries (financial, but more importantly in #'s using their services).

[ficbot]

Guyanonymous, I agree, the service/social aspect is important. I keep thinking about an article I read about the renovation of several library branches in my community where the librarian they quoted said that in her view, libraries are not just 'repositories for books' but rather 'community meeting places.' They started focusing on things like running seminars on how to do research, how to use the computer, what resources are available for people new to the community etc. and providing a hub for where people could have meetings with their community groups and yes, get books I read another article on libraries where a different librarian said they love ebooks because there is no late fees, no manpower required to shelve and catalogue them etc. so this leaves the librarians free to focus their time on other efforts.

I think book stores could benefit from this approach and view their stores as community meeting places. Sell/trade used books, offer sample copies of new books that people can print on demand or download, provide a space for author events or writing groups or other similar community organizations etc. They could do very well in the digital age by using this approach and some judicious co-branding on the level of branded cookies in the coffee shop etc.

[guyanonymous]

In today's internet-based world, developing social-gathering spots is critical, especially those that allow people to develop and expand shared interests.

Out in Surrey, BC, there's a board game shop at one of the malls. In this games shop the owner has a two-fold approach that results in more games sold, and more satisfied customers. He rents board games. The fee is 10% of the cost of a new game and, if you choose to purchase the game (a new copy, not the used one you rented), that 10% is deducted from the purchase price. He also has tables setup in-store where small groups can try out games; he'll help you learn the rules, and even join in now and then.

I don't think I'd purchased a board game in my life (though in my child-hood my mother setup a games room filled with puzzles, board games etc, and they were a regular family activity). The day I went in there with a few friends, we spent an hour learning a new game, playing it through, and learning about others. I purchased 3 games, confident that I'd enjoy them; the other people with me bought 1-3 games each as well.

I know other shops host games nights etc, but this one offered something more.

Bolen Books, an independent store that has GROWN (to the size of the B&N's and Borders I've been in) since the big-box Chapters came to town. They host frequent author nights, even single's nights, and operate in hours beyond that of the mall in which they are considered an anchor-store; those hours are ones that are convenient to those people who actually work 9-5...letting us avoid busy mall parking lots as well.

I think they've made some steps in the right direction...alas, not enough to keep me buying pbooks, as their pricing is full-cover price, and they usually don't have the books I'm after (British mystery series, old-out-of-print books, etc).

[theducks]

Why not:
"Would you like that in Paper or e-version"
and a tiny (as compared to shelving) download to device space.
It is all about personal service and advise.
At $9.95 there was a ton of Margin when compared to the paper version.

Warehousing is in a 19" rack instead of a huge building.
Shipping is pennies vs Dollars
Accounting is automatic
and there are no returns

[fugazied]

Bundling definitely is important. IMO someone buying a print book for $15 should get the ebook version for $5 more, but ebooks by themselves should never cost more than $9.

Bookstores have got a real uphill battle and places with stagnant managers will simply fail. However bookstores with forward thinking managers will prosper MORE than before. They need to do simple things like:

- Have all the latest e-reader models in store for people to use/test before they buy. Bookstores need to stock Sony, iPad, Kindle and everything else. They need to be THE place you go to get hands on with a reader.
- Free wifi
- Coffee.
- Comfortable chairs (they can use the space granted after half of their print stock is removed)
- Social gatherings like book clubs need to be hosted in bookstores. The bookstore needs to be the hub of the bookreading community - the place book readers go to talk books, see authors, have a coffee and buy books.
- Bookstores won't need as many print copies in the future, so they should use that space to add e-reader stock and change the focus of their shops from aisle after aisle of cheap books to a more inviting space.

[rebarnmom]

Originally Posted by taglines

Though cards redeemable for ebooks (like Symtio's product) have not taken off and present limited inventory, he suggested there could be a kiosk to produce such cards.

I was thrilled with the concept behind Symtio, but their online selection is much larger than what the stores carry and not as expensive either. There's actually quite a bit of difference in price. I think if you buy from Symtio online you can choose your local store to give them the credit anyway.