Correction and a Closer Look
I must apologize for an error in my interpretation of BISG data in my May column, of which this month’s column is a continuation. I inadvertently included direct sales to colleges in total publisher sales to retailers. So, here is a revised re-cap that also provides a more complete picture of the industry:
• Total sales to general retailers (including chains) are $12.7 billion, or 35.5 percent of the total $35.8 billion in publisher book sales.
• Sales to libraries and institutions are $3.5 billion (9.5 percent of total), direct to schools are $5.5 billion (15.4 percent), and to colleges $5.9 billion (16.5 percent).
• Since master-distributor, publisher-alliance and commissioned-rep sales consist almost entirely of retail and library/institution sales to a total market of $16.2 billion, my estimate of their $1.4 billion to $2 billion in sales would account for 8.6 percent to 12.3 percent of the $16.2 billion.
•The estimated $400 million to $500 million in master-distributor sales alone (not including distributor-owned imprints) would account for 3.3 percent to 4.2 percent of the total $16.2 billion.
• Publisher sales to wholesalers of $4.2 billion going to the retailer and library/institution channels would account for 25.9 percent.
The figures for master distributors still appear to be counter-intuitive on the low side. I would love to hear from readers with supporting data to the contrary.
—GS
Piecing Together the Distribution Puzzle
If distribution means getting books into the hands of sellers, circulators or readers, then a true profile of the distribution business would cast a wide net, beginning at the binding line and continuing through to the ‘long tail’ of online portals, used bookstores and curbside pushcarts.
However, if distribution, from the publisher’s view, means getting books to generate sales revenue, we can overlook all of the aftermarket, recirculation and reselling channels and focus solely on reaching stores, libraries, online and catalog warehouses and—increasingly, thanks to the Internet—direct marketing from the publisher to the consumer.