Is the End Near for Independent Bookstores?

Is the end near for your local independent bookseller? We sure hope not. These stores are the means by which we hear of many of the new voices in literature, and they are under siege. Why? The big guys are pricing them out of business.

Recently the board of the American Booksellers Association (an association of independent booksellers) wrote to the US Department of Justice about the deep-discounting of high profile books, which the ABA said “constitutes illegal predatory pricing that is damaging to the book industry and harmful to consumers. . . . We believe that Amazon.com, Wal-Mart, and Target are using these predatory pricing practices to attempt to win control of the market for hardcover bestsellers.” The letter also says that “we believe the loss-leader pricing of digital content also bears scrutiny,” referring to Amazon’s practice of selling ebooks at a loss and suggesting this practice marked the beginning of the price war.

A certain amount of every book we buy goes to paying the publisher’s costs; another portion provides payment to the author (note: many authors’ contracts stipulate that royalties will not be paid on books discounted below a certain price point) and to the publishing company. A small independent bookstore also may have to pay a little more for each book because inventory is purchased in smaller quantities from book distributors, whereas chains and big-box stores buy directly from the publisher. And of course in a normal business environment part of the cost is supposed to go to the retailer, big or small, as profit.

In this price war that model has been thrown out the window. Amazon.com, Wal-Mart, and Target are selling books at a loss. While this may seem good for you, the reader, in the long run there is a problem. The mom and pop independent stores cannot compete with these giants and will be forced out of business. Let’s not let this happen, folks. Indie stores are much more than retailers. Many host all sorts of writer-friendly book groups, workshops, and author appearances, and have become valuable community resources. If we don’t support our local bookstores a time will come when the only way we will be able to get our favorite books signed by our favorite authors will be in a crowded aisle between the auto parts and the cole slaw samples . . . and no cole slaw we’ve ever had is that good. We’d love to hear your thoughts and stories about your local independent bookstore. Feel free to share recipes, too.