BEA: Seven Weeks and Counting

BookExpo America, which will be held from Thursday, June 2, to Sunday, June 5, at New York City's Jacob Javits Convention Center, is now just seven weeks away! To help our readers prepare for the myriad special events and educational opportunities, today and for the remaining six weeks, Bookselling This Week will shine a spotlight on one or more aspects of the four days of ABA and BEA program offerings.

This week, we focus on the morning sessions being offered as part of ABA's third annual "Day of Education" on Thursday. Throughout the day, a rich and thorough series of educational offerings will focus on one goal -- to help booksellers increase their bottom lines. Open to all ABA members, this full day of education -- including lunch -- is free of charge. Advance registration through BEA is required.

From 8:30 a.m. - 9:15 a.m., the Special Events Hall will be the site of the plenary session, "George Soros: In Conversation With Peter Osnos, His Publisher."

George Soros is the author of eight books, including The Bubble of America Supremacy: Correcting the Misuse of American Power (PublicAffairs, January 2004) and a new book to be published by PublicAffairs in the fall of 2005. Soros is chairman of Soros Fund Management LLC and one of the world's most prominent philanthropists. He is chairman of the Open Society Institute and the founder of a network of philanthropic organizations that are active in more than 50 countries. Based primarily in Central and Eastern Europe and the former Soviet Union -- but also in Africa, Latin America, Asia, and the U.S. -- these foundations are dedicated to building and maintaining the infrastructure and institutions of an open society. In the 1990s, ABA worked with Soros and the Open Society Institute to offer a series of Booksellers Schools in the emerging democracies of Eastern Europe.

Peter Osnos is the publisher and chief executive of PublicAffairs, a member of the Perseus Books Group. He was publisher of Random House's Times Books Division from 1991 to 1996, and, prior to that, he was a vice president and associate publisher of the Random House imprint.

From 9:30 a.m. - 12:15 p.m., in Room 1B 04-05, Chuck Robinson of Village Books in Bellingham, Washington, will present "The 2% Solution -- An Introduction to Profitability." This popular seminar is being presented for booksellers who have not been able to attend previous sessions presented at ABA's regional programs.

Robinson will lead booksellers in an examination of the drivers of bookstore profitability, focusing on how they can be used to move a business to greater profitability. Specific suggestions and ideas about how a bookseller can work on sales, gross margin, total compensation, and occupancy expenses will be provided. The ABACUS Study of independent bookstore operations showed that the average profitability of all respondents was a minus 1.4 percent. While moving from negative profitability to a plus two percent is a long journey, this seminar will help booksellers start mapping a new course.

Emanating directly out of "The 2% Solution," the following five morning sessions provide in-depth examinations of issues related to margin, sales, payroll, cost of goods sold, and occupancy expenses.

"Increasing Margin: An Advanced Course in Growing Your Bottom Line," a special extended session, will be presented by ABA CEO Avin Mark Domnitz from 9:30 a.m. - 12:15 p.m. in Room 1B 03.

Controlling margin can seem an overwhelming task to many booksellers, but it doesn't have to be. This session will show how affecting gross profit margin can lead to increased profitability.

Intended for booksellers who are already familiar with the principles of inventory management, this content-rich session will compare and contrast a profitable and unprofitable bookstore and will cover a wide range of material, including: controlling product mix, direct versus wholesale ordering, electronic ordering, understanding the value of early payment discounts, better managing seasonal title orders, and more.

"Increasing Sales" will be presented by ABA Board member Russ Lawrence of Chapter One Book Store in Hamilton, Montana, in Room 1C 01-02, from 9:30 a.m. - 10:45 a.m. and again at 11:00 a.m. - 12:15 p.m.

Simply put, profitability is the difference between revenue and expense. The greater the difference in favor of revenue, the more profitable your business will be.

This nuts and bolts session will focus on strategies for increasing sales, including the use of co-op, websites, and e-mail. Participants will learn how to sell more to customers once they come through the door. Topics will include improving traffic flow, best merchandising practices, loyalty programs, and the value of increasing sales outside the store.

"Cost of Goods Sold 101" will be presented by BookSense.com Director Len Vlahos in Room 1C 03, from 9:30 a.m. - 10:45 a.m.

Cost of Goods Sold (COGS) is a mystery to many booksellers. What is it? How is it calculated? Why is it important? This session will demystify COGS and help show you why it's so crucial to understanding the financial health of your business.

Designed for booksellers less experienced in dealing with inventory management issues and financial analysis, the material will show how the "Retail Inventory Method" can be used for calculating COGS. Using real-world examples, Vlahos will show how an accurate accounting of inventory and payables can lead any bookseller toward increased profitability.

"It's in the Payroll!" will be presented by BookSense.com Director Len Vlahos in Room 1B 01-02, from 11:00 a.m. - 12:15 p.m.

The book business has euphemistically been referred to as a "two percent business," because bookstores that operated at a two percent profit (net before tax) were thought to be doing okay. Unfortunately, profits have slipped dramatically over the years, and today, the average bookshop shows a pre-tax net loss.

The focus of this session is payroll control. Payroll, the single largest component on the expense side of the ledger, is arguably the most difficult issue for booksellers to handle successfully. Starting with an examination of what is included in the payroll line (total compensation) and providing practical, usable tools for budgeting, scheduling, and controlling payroll, this seminar will provide invaluable tools and information to booksellers, regardless of store size.

"Renegotiating a Lease" will be presented by ABA Board member Cathy Langer of Denver's Tattered Cover Book Store in Room 1C 04, from 9:30 a.m. - 10:45 a.m. and again at 11:00 a.m. - 12:15 p.m.

This session will show how the assumption that a bookstore's occupancy cost is a fixed cost that can never be changed, is wrong. Carefully monitoring industry trends, paying attention to the local real estate market, and maintaining a dialogue with a landlord will better position booksellers to control their occupancy expenses.

Langer will use real-world examples to show how a savvy bookseller can create a plan for entering into a discussion about an existing lease. The material will include using ABACUS benchmarks to frame discussions with your landlord and will cover such issues as paying by the square foot vs. paying a percent of sales, why booksellers need to begin lease renegotiations well in advance of it becoming a necessity, and more.

For Publishers:

"Book Sense Sessions for Publishers" will be held from 10:00 a.m. - 11:00 a.m. in the ABA/Book Sense Lounge (Room 1E 07-08). Representatives from Book Sense will explain how publishers can take advantage of various Book Sense initiatives and will answer questions about the program.

In next week's issue, BTW will shine the spotlight on ABA's Thursday afternoon education sessions. For complete details about ABA's BEA educational offerings and special events and BEA registration information, go to www.bookweb.org/aba/convention.