Publishers expected to pay if they want their books well promoted at stores
|
|
|
In an attempt to maximise their profits, some bookstores have started to put price tags on their display space even in Finland, following the example set by Waterstone's, the largest bookstore chain in Britain.
A couple of months ago the British daily The Times disclosed a letter sent to publishers by Waterstone's in which the company set out what it expected them to pay if they wanted their books to be well promoted in its stores.
For example, Suomalainen Kirjakauppa, the largest Finnish bookstore chain, is selling prominent display spots to publishers in the same way as it is selling them advertising space. Premium promotion spaces include for instance the reservation of a front-of-store table or a display window at each outlet. Another alternative is to buy a display stand outside a shop.
"The promotion spaces at our stores are not automatically subject to a charge. We discuss them separately with publishers", notes Director Kristiina Rantanen, who is in charge of purchasing at Suomalainen Kirjakauppa.
However, certain premium spots have definite prices. For example, the hiring of a display spot for two weeks at the bookstore’s outlet in the Kamppi shopping centre cost EUR 700 in 2006.
Other chains have not taken up similar charges as yet. However, for example the Academic Bookstore (Akateeminen Kirjakauppa), which is part of Stockmann, does not regard the idea as out of the question.
"If the publishers start to prioritize online stores as distribution channels, I see no reason why we should not set a price on our display spots. If our profits and customer numbers drop, it is self-evident that we will have to get the money from somewhere", notes Director Stig-Björn Nyberg from the Academic Bookstore.
The Finnish publishers are indignant at the new modus operandi from Suomalainen Kirjakauppa.
"Previously we used to discuss campaigns together. Now we are given a list of tariffs and told to take it or leave it", says a person who works in the marketing department of a Finnish publishing company. This interviewee is one of those who wish to remain anonymous for obvious reasons.
Suomalainen Kirjakauppa, with its 62 outlets, is the biggest bookstore chain in Finland, and some individuals interviewed by the paper said they were afraid of potential retaliation by the retailer.
The publishers feel that the new marketing practice is part of the development pursued by bookstores in order to minimise their risks and to shift the responsibility for sales on to the publishers.
However, Kristiina Rantanen from Suomalainen Kirjakauppa rejects the accusation that the publishers were demanded to take care of marketing activities on behalf of the retailers.
"We ourselves pay 70 to 75 per cent of our marketing costs", she argues.
Defending the charges, Rantanen notes further that the selling of books is a normal business operation, just like the sales of any other product with budget responsibility.
Helsingin Sanomat
|
| 13.8.2007 - TODAY |
 Publishers expected to pay if they want their books well promoted at stores |
|
