April 21, 2009, Marc Fisher, Washington Post, wrote an article after Vertigo Books, an independent bookstore, announced its closing http://www.washingtonpost.com/wp-dyn/content/article/2009/04/20/AR2009042003286.html. In the article, he lamented over the closing of yet another local bookstore, in favor of online book shoppers. The original announcement contained many comments from shoppers who would miss the warm, friendly, knowledgeable staff, who helped their customers find just the right books. Many blamed online shoppers for their demise.

The situation is not online vs. local stores as much as huge buying power vs. small business. I would sum up the underlying cause in two words – VOLUME PRICING.

I have an online business http://www.localtalentbooksmusic.com and experience many of the obstacles facing the brick-and-mortar store. As a small retailer, I receive the “standard” discounts from the publishers and distributors. I, too, am competing again the large chains and online stores. Their prices are often discounted close to, if not below, my wholesale price. I shopped at Costco and found many current bestseller books for sale, priced BELOW my cost! I’m not talking about books that have been out for a while; they included David Baldacci’s First Family that was just released the same week plus many other titles found on the Indie Bestseller lists.

I spoke with an author who said she’s competing against herself. She sells her book to Amazon for a fraction of the retail cost and loses sales from her own site. A small local publisher echoed similar thoughts saying users surf his site for information and buy the book elsewhere.

There was a time when publishers offered the huge discounts after the “first wave” of readers bought the book. It worked similar to the movie industry that does not sell DVDs until after the first run in the theatres. Could movie theatres survive if movies were introduced in DVD at the same time? Can book resellers survive if new releases are offered cheaper online and at discount warehouses?

Unless the publisher pricing structure is changed, I see small booksellers giving way to the large chains as we have seen in hardware stores. People enjoyed the old style hardware stores where many of the workers were tradesmen, or at least knew the difference between a pair of pliers and a wrench. Even so, they could not compete with the lower prices of the large hardware stores. And unlike the varying difference of quality of tools in hardware stores, a book is a book. The book in the warehouse store came off the same printing press as the one in the bookstore. And now, there’s no waiting period for discounts off “hot” titles. While customers enjoy the cozy atmosphere and great service provided by the local bookstore, there’s no incentive for the customer to pay full price. While one may argue it’s a problem of online vs. brick-and-mortar, most bookstores have an online store also. It still comes down to price.

The American Booksellers Association established IndieBound to help promote local book resellers. They have made a huge effort to provide resources for publishers and resellers. You may have noticed IndieBound links to help online users locate local book resellers. I think if the traditional bookstore is to stay alive, it will be with the help of ABA or other organizations that can provide a single voice and united front for the “indies.”

Long live the local bookseller!