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Bookselling in Tough Times
In a time punctuated by decided economic uncertainty, booksellers are focused more than ever on meeting their business goals with a proactive strategy that responds to changing realities. Here are a number of resources to help put you in the best position to succeed.
 
A Letter to Booksellers from ABA CEO Avin Mark Domnitz
ABA CEO Avin Mark Domnitz addresses the challenges facing booksellers in a turbulent economic environment. Although no one can predict exactly how the economic downturn will affect sales, Domnitz reminds booksellers that now more than ever, it's important to hearken back to business fundamentals, especially relating to controlling inventory and payroll.
Worksheets
Budgeting carefully is important in uncertain times. Use these worksheets to monitor key expenses such as inventory and payroll. Topics include: Sales, Expenses, Inventory, Payroll, Productivity, and more.
Bookselling This Week's "Tough Times" Series

Bookselling This Week's "Bookselling in Tough Times" articles aim to help booksellers survive the economic crunch, providing tips and insights from experienced booksellers on key topics.

  • Meeting the Struggling Economy Head-On: Booksellers Ramp Up Strategic Marketing Plans - In light of a significant decline in consumer spending in the weeks leading up to the holiday season, retailers nationwide are creating proactive and strategic marketing promotions to ramp up their sales, cash flow, and visibility.
  • Loss Control - Booksellers who think loss control is not a store's top priority, especially when times are tough and profits are harder to come by, should talk to David Bolduc of Boulder Book Store in Colorado. If it weren't for the steps he started taking some 25 years ago to secure his bookstore, Bolduc's store could be losing around $80,000 per year in shrinkage.
  • Cash Flow - Having control of cash flow will be key to determining whether your business is able to handle what lies ahead. It's all about being in control. Booksellers need to make sure that they have the monetary ability to adapt and respond to market fluctuations as they happen.
  • Bookselling in an Uncertain World - Kristen McLean, Executive Director of the Association of Booksellers for Children shares some insightful strategies for coping with the poor economy. The message: nurture your customers, and stress the lasting value of the book.
  • Remainders - In both good times and bad, many booksellers turn to remainders as a way to supplement and complement their inventory without breaking the bank. The benefits of selling remainders are simple but significant: They cost less and offer a higher markup.
  • Merchandising - At any time of year, in any kind of economy, the importance of merchandising cannot be overstated. Offering customers a visually enticing and comfortable spot to shop, with the right product and title mix, can mean the difference between a profitable season and a poor one.
  • Staffing - During tough times, it's imperative that booksellers control costs. Payroll represents approximately 20 percent of a store's costs (while inventory constitutes 60 percent), so taking control of staffing is crucial for stores looking to weather economic turmoil.
  • Marketing - Carole Horne of Harvard Book Store, Casey Coonerty Protti of Bookshop Santa Cruz, and John Hugo of Andover Bookstore share their tips for marketing when money is tight and the holiday season is fast-approaching. Key among their recommendations is getting the message out that books are a great gift value.
  • Inventory Management - In our inaugural column, four booksellers share their thoughts about inventory management in a tough economic climate coupled with the fast-approaching holiday season.

Education Sessions

One major advantage independent bookstores have in difficult times is their adaptability. Use these sessions as a starting point for ways to optimize your store's business, find new profit areas, and minimize overhead and loss.

  • Surviving Tough Times: Here are some suggestions on how to prepare your business for tough times.
  • Loss Control: How to Stop Profits From Running Out the Front (and Back) Door. Sample the Daily Records Sheet from Harry W. Schwartz Bookshops. Learn best practices to identify & control loss in your store.
  • Increasing Margin: Strategies for optimizing your inventory by adding high margin items and more effectively managing trade sales.
  • Green Retailing: Being a green retailer, or an environmentally friendly retailer, will not only raise your status among your current and future customers, it will also save you money and increase your bottom line.
  • Negotiating a Lease: Occupancy cost is a bookstore’s second-largest expense; learn how to negotiate or renegotiate your terms.
  • Introduction to Co-op Advertising: The ABACUS study shows that profitable booksellers spend much less on advertising than unprofitable booksellers. This does not necessarily mean profitable bookstores advertise less, but it does mean that they claim more co-op.
  • Getting the Most Out of Your Website: A checklist of best marketing practices that will help you make your website a success.
  • Improving Efficiency: By using their time more effectively, making staff more productive, and implementing efficiencies throughout the store, managers will be able to devote more time and energy to achieving important strategic goals for the store.
  • Developing a Business Plan: Thinking critically about your business, and laying out strategic goals, can be a huge help in difficult times.
Use Inventory Management to Improve Efficiency
Above The Treeline monitors inventory and sales data from your store and provides rich, vital statistics about what's selling and what isn't. It's also possible to benchmark (anonymously!) your store's sales performance against similar stores, see which bestselling books your store is missing, even track sales by book category over time. It's accessible over the web or through email. ABA Members receive a substantial discount.
Connect with Other Booksellers in the Forums
Now more than ever, networking is essential for independent booksellers. Share your experiences and advice with others in the Bookseller Forums.