Paying for shelf space Re: [LINK] ABC News Critique

[steve jenkin]

Jan Whitaker wrote on 12/8/07 3:56 PM:
> causing the publishers to PAY A&R to carry their books.
Mention on the ABC blog:
<http://blogs.abc.net.au/articulate/2007/08/pay-to-stay-aus.html

Booksellers are retailers. I may love books and think the GST a damnable
tax on education and learning - but that's
All retail is about turnover and margin.
Stores have to be efficient and effective - give good returns and stock
the right items.
One of the most commonly used metrics is: "$ profit per unit of shelf
space".

Certain positions are also known to be much more valuable:
- middle/eye-level shelves
- at the front of rows
- next to counters/queues

Bunnings and retailers with large spaces manage this by:
- lowering cost of floor space with big spaces, often specially built
for them
- lots of shelves to multiply shelf space per floor space
- combining storage and shelving
- huge range of products - promotes impulse buying and "up-selling"
- often multiple related & cross-selling specialities
- large margins on slow moving stock - and on very cheap imports
- loss-leaders to bring people in the doors.

Supermarkets have been charging 'brand name' producers premiums on
positions for a very long time.
Best example - chocolate coated biscuits in those stands in the checkout
line :-)

In the last few years I remember an Australian news item on bookshops
charging distributors or publishers to place books near the front of the
store - same deal.

Like it or not, books are just another commodity to retail chains.
They have to compete with large-scale stores like Borders [or should
they be called 'Fox Books' from the film based on "The shop around the
corner"?]

Borders do all the 'big store' things - music, magazines, coffee, books,
stationery, ...
Older  retailers who are unwilling to increase floor space and compete
in this version of "race to the bottom", have to look at other ways of
keeping profits up.

Despite the usual 40% margins, small bookshops have never been
goldmines. Their owners made comfortable livings, but unless they owned
the building, never got rich from the business.

I'd love to agree with you and express outrage at this latest  folly or
excess of our  economic system... But Borders, Bunnings and Woolies
would not be thriving if people didn't flock there... They are doing
enough right for consumers and producers that we are stuck with the
model.  Personally I hate it - the extra benefits are small and the loss
of decades of passion, experience and knowledge is irredeemable...

Lets form a resistance movement and make a difference.

cheers
s
 
> Jan
>
>
> Jan Whitaker
> JLWhitaker Associates, Melbourne Victoria
> jwhit at janwhitaker.com
> business: http://www.janwhitaker.com
> personal: http://www.janwhitaker.com/personal/
> commentary: http://janwhitaker.com/jansblog/
>


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Steve Jenkin, Info Tech, Systems and Design Specialist.
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