Every summer, booksellers sit down to complete the ABACUS survey, a detailed questionnaire about their businesses. Then, each fall, ABA releases the ABACUS report, a summary of the trends and other points of interests derived from indie booksellers' combined answers. Stores that submitted their survey also receive a detailed breakdown of how their store's performance compares to others with similar demographics.
The 2024 ABACUS survey is currently live, and the deadline to complete it is has been extended to June 21.
With just a few weeks left to complete the latest ABACUS survey, ABA CFO PK Sindwani sat down with Bookselling This Week to share his experiences using ABACUS as a bookseller, helping to develop the survey, and why you should take the time to complete your ABACUS.
Bookselling This Week: Let's start with a little bit about your history in bookselling. Would you tell us a bit about your store and how ABACUS started?
PK Sindwani: I had the bookstore for 29 years before I joined ABA in 2019. I opened my bookstore in 1990.
I was an ABA member all along, and I always wondered, “I know my bookstore is doing good, but am I really doing good? How does that compare to other bookstores? Am I missing out on something?” It was always shooting in the dark.
So I, along with a lot of other booksellers, approached the CEO at the time, Oren Teicher, as well as Dan Cullen. We said, “Look, we would like to have some benchmarks to see how we're doing.”
And that's how ABACUS got started. That was about 15 or 20 years ago.
BTW: Wow, I didn’t know you were part of the group that started it. So, how much has ABACUS changed over the years?
PK: It’s changed a lot over the years, and most of those changes have been in the last five or six years.
Even after ABACUS got started, I'd always been one of the people on their task force, where they ask a group of booksellers, "Now that you have ABACUS results for this year, is there something different you would like to see next year?" So we always had suggestions.
We used to collect so much data about balance sheets, but it was very time consuming. We’ve always tried to give as much information as possible on the questionnaire about where to find the relevant information, but some of the balance sheet items were unique to every bookstore. We found it was easier if they just talk to their bank CPAs or their accountants about that. So, we eliminated balance sheet items to save people time.
We also started a comparison with the regional associations, because stores on opposite sides of the country are not going to have the same experiences or expenses. Things like minimum wage also vary widely by state, but none of us can charge more than the price that is printed on the book, so it’s really like comparing apples and oranges.
We said, “Okay, let's compare stores with similar demographics and similar minimum wage.” So really you're getting to drill down and compare yourself to similar stores.
Another thing that also changed from the original ABACUS — though it was done before I was hired at ABA — was the addition of comparable wages. How much does an average bookseller make in the country? How much does a buyer make? An events manager? How much does the owner make if the owner is doing a task, and how much would it be worth if that owner was hiring?
For example, as an owner, I would put in 60 hours a week: 40 hours of managing the store and the other 20 doing my accounting. We know there are a lot of owners who wear multiple hats. So, with the salary data we collect, ABACUS can help owners make an informed decision when they want to outsource a task or hire for a position.
In the past few years, we also added in how far away stores are from a living wage. ABACUS asks a few questions about minimum wage in your area and starting pay for employees, and provides a link to MIT's Living Wage Calculator. It can give people a goal if they’re trying to pay a living wage in their area.
BTW: So, stores can get some really cool insights from ABACUS, but why is it so important to complete the survey?
PK: You will see things are always evolving in bookselling. I was a book lover, so when I started my business, I said to myself, “I don't want to keep miscellaneous things. It's a bookstore, it's not a stationery store.” Then we slowly realized if you just sell books alone, you're not as profitable.
I was hesitant about adding sidelines, so ABACUS was a great source for me. I could see how I was doing on sidelines. I could look at what people were selling. Calendars are an excellent example. To this day, even though we all have calendars on our computers, people love to have a physical calendar. So, I was able to see what I might be missing out on. With ABACUS, you also learn to see cost control. Are you paying too much for insurance? Is your rent too high?
I would say my favorite is co-op — the money that publishers give booksellers for advertising. A lot of people don't know whether they're collecting enough or if they're leaving money behind. Each year, by finding out what the average co-op is, you can investigate and improve your process. (And the most profitable stores tend to have a higher percentage of co-op.)
Being able to see all this data is very beneficial. Even if you've been in business for 10 or 20 years, there’s always something new to learn. Every year you participate, you learn things about your store that you didn't know before. You learn how to maximize your sales potential
BTW: That's a really great answer. What does ABA do with the information that we get from ABACUS?
PK: I want to emphasize that ABA does not see anybody's information. For confidentiality, all the data goes to a company called Industry Insights. They compile the data and then Allison and I review that [compilation] and point out anomalies.
We may say, “Hey, this has changed, let’s keep an eye on this.” For example, whether the average store sales have gone up or down. We look at all the data, and I also have a seven-year trend that I look at. Then we do our best to summarize what we’ve seen and point out things booksellers should be aware of.
The insights ABA gains from the ABACUS results also inform education that ABA develops to help booksellers, and help ABA ensure that publishers and government representatives understand the financial realities of bookselling — which enables us to make our advocacy on behalf of members more impactful.
BTW: Is there anything else that you feel is important for us to mention about ABACUS?
PK: Yeah: Keep giving us suggestions! We are always listening. We add questions or make adjustments based on what you feel you need to know.
Based on your feedback, we added a question about how many books you have per square foot. It’s another way of checking whether you have adequate inventory and are optimizing your space. It's also a good indicator of when to move or expand your store.
We also rolled out the survey a little earlier this year in response to booksellers’ comments. It used to go out in the middle of June, but stores wanted the results earlier so they could take action before Q4. Seasonal stores also get very busy in June and they don't have the time to do the survey.
As a result, the survey closes sooner, and the final report will be available sooner.
With this year’s timeline, the survey is still after the April 15 tax deadline, but should allow seasonal stores more time to participate, and give everyone more time to analyze their reports.