Part Five: Bookstores vs. Online

If you thought the last post in this series was controversial, wait till you read this one.  I've spent the past week tossing out ideas for how brick-and-mortar bookstores could better compete with the online players.  This is the fifth post in the series.  (For those of you who are tired of this subject you'll be glad to know I'm pretty sure I only have one more post on it after this one.)  Links to posts 1 through 4 can be found here, here, here and here.

This idea is pretty simple.  Anyone who has ever bought a book has probably also entertained the idea of reselling it.  That's why a chain like Half Price Books is so popular.  Why let eBay and specialty stores have all the fun?  Why not create a used books store within the larger store?  Don't just implement a used book program though...make it better than the other brick-and-mortar ones.  Use your existing inventory systems to create a parallel tracking program for your used inventory as well.  That's one of my biggest beefs with the other used book stores; they generally don't know what books they have in stock.  You're forced to search through the shelves after you're at the store because there's also no inventory search option on their website.

The big brick-and-mortar retailers already offer used books online.  Now it's time to look at integrating this service in the store.  Besides the logistics of implementing such a program, the biggest challenge is floor/storage space.  How do you pack even more used inventory into a store that's already bursting at the seams with new books?  The answer is to revisit the inventory investment in new titles throughout the store.  Borders is taking bold steps with their concept stores and focusing more on the high-volume titles.  I'm guessing the assumption is very few brick-and-mortar stores can hope to compete with the seemingly infinite selection the dot-coms have to offer.

The same assumption probably applies here as well.  A new store-within-a-store would probably help drive more foot traffic as well, which is always a good thing in the retail world.  And don't forget about the attractive margins associated with used product sales.  Car dealers often make more money selling a used car than a new one, mostly because they got a great deal when they acquired the inventory.  The same logic works here too, as anyone who's ever sold their used books knows all too well!

Comments

[Book Calendar]

Here is where it gets interesting. Barnes and Noble tried to sell used books in its annex in Manhattan near Strand Books. They failed because of limited specialty knowledge. At least this is what I think it is. I am not 100% sure. The Strand in Manhattan is a union shop with many employees with very deep knowledge of books who have been there for multiple years and get paid more than Barnes and Noble.

It takes more skill to sell used books than new books. Most used books are dead material, they have passed their useful selling life. Being able to pick out which used books are valuable and then pricing them accordingly is a skill. It requires more than minimum wage which is what the majority of stores like Barnes and Noble pay.

Powells.com interfiles all of its used and new books. They claim that this increases their sales. Having skilled specialists who can tell the customer about what they are selling is a big plus in a used bookstore. This is becoming harder and harder to find.

If you look at both Powells.com and Strandbooks.com websites you will find a different taxonomy with unique categories that you won't find in Barnes and Noble or Amazon. This also extends to the store.

Barnes and Noble, Borders, and Amazon are not specialists. The main advantage they have is variety, but often there is little knowledge of what is in that variety.

Also, if you look closely, Barnes and Noble often fails in dealing with quirky and independent publishers. Having unique types of books, signed books, special editions can separate a bricks and mortar from an Amazon.

Brick and Mortar stores if done right can offer a much deeper, older, and wider variety of books than in an online store if the store is managed right.

[Joe Wikert]

Excellent observations. I wonder if a big chain can overcome the in-store knowledge issue by providing a centralized buying/pricing system. For example, I walk in with 2 books I want to sell. The clerk scans both titles and the system says to buy one at $5 and decline buying the other. This centralized system would have to be maintained by a very knowledgeable person or team, but it's a reasonable approach to solve the problem you described.

[Book Calendar]

There are things like http://www.bookfinder.com which aggregrate prices for used books. The prices are all over the place. There is also http://www.addall.com

Still, there is the matter of determining which price is the right one. Not all of the listed prices are accurate. Also not all the dealers are reliable.

There is a little bit of leeway in this. Also, there is the issue of condition of a book. The value of a book can vary considerably because of condition. A little training in grading books would also be needed.

There is a minimum level of competence involved. Things like http://www.bibliomania.net/terminology.html can give you an idea of terminology and some basics on grading, but it can get complicated.

I think this is the problem which some of the used bookstores faced. Being able to price and grade properly is a major advantage. There are people who used to wander between bookstores buying from different bookstores and reselling books as a hobby called "pickers." It was once part of a disappeared book culture in Manhattan, before so many of the stores closed.

[Suzanne]

Here again is an example of where amazon has even the used book market cornered: The other day I wanted to get a Pevear and Volokhonsky translation of The Brothers Karamazov. I looked it up on amazon, and then figured why not save some money and get a used copy? As you know amazon offers a used book marketplace which allows me to choose the book by price and quality. While I was at, I saw a 1945 illustrated version by Constance Garnett, which I thought would be fun to have, so I ordered one of those too...for all of $9.00 (+ shipping). My point being that for me to have found both books in one store would have been a stroke of great luck...especially since I was able to order both books from the comfort of home at 10pm!

I would be interested to know if you think that indie bookstores have a chance of surviving? Once upon a time, I dreamed of owning my own bookstore in a little mountain town....however, when I look at my own buying patterns, how could I expect to open a bookstore when I buy 99% of my books on amazon? I don't see how indies can compete on price, inventory, and convenience?

[James L]

In fact, the Scholarly Book Department at the Barnes and Noble Annex (18th Street and 5th Ave) was financially successful. As manager of that department, I was given monthly reports that typically made that assessment. While Lenny Riggio had discussed with me the possibility of B&N opening used branches nationwide, the Annex finally closed down when B&N went Superstore. That is my recollection.

I now own a used bookstore in my neighborhood, Brooklyn Heights, where soaring rents and reduced foot traffic make remaining in business a serious challenge.

Jim