Borders Bookstore Bankruptcy Reflects Excess Supply of Low Quality Books
Ken Sweeney ·
Feb 21, 2011 at 7:18pm
Most business analysts have concluded that Borders bankruptcy was a result of slow adoption of the customer shift towards digital. But a NY Daily News article by Alexander Nazaryan has a different perspective:
- “What happened to real estate is now happening to books: An industry colluded to push an overpriced product on a public whose purse strings were tightening and whose tastes were changing. Demand dropped steadily, but supply kept soaring - only now is it coming down to earth.”
- “Borders' meltdown suggests a deeper unwillingness of the American reader to partake in the cycle of poorly written books rushed to the market, wildly hyped and then promptly turned into so much blank paper again.”
Ricochet members are highly read and have a sense of the dynamic and evolving market place in a myriad of industries. I was wondering about your take on the Borders bankruptcy and Barnes & Noble offering itself for sale. What are the implications for the publishing industry, and writers?
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Comments :
Jan '11
Re: Borders Bookstore Bankruptcy Reflects Excess Supply of Low Quality Books
As luck would have it, I just heard John Feinstein talk about having Borders go into Chapter 11 be a very bad thing for the publishing business. Apparently, authors have different provisions with traditional publishers than they do with electronic ones, and the contracts with the latter are still evolving. And it sounds like the discounts that eBooks provide readers are in some degree being taken out of the authors' pocket.
"5 years ago a million dollar contract is now a $500,000 contract."
Ouchie.
Jun '10
Re: Borders Bookstore Bankruptcy Reflects Excess Supply of Low Quality Books
A close friend of mine is a manager for one of the few profitable Borders bookstores. Here's his take:
"Borders has spent the last several year f---ing around. I could honestly write a 20 page booklet on all the problems, but I'll give you bullet points:
- poor strategy in expansion without improving quality
- loss caused by not improving inventory systems
- unrealistic IT infrastructure (When B&N went online, the CEO of Borders said that internet shopping was a "fad")
- Disconnection between higher- and store-level management
I could go on... the only smart move for the company is to file bankruptcy, which would allow renegotiation of all our debt, dump unprofitable stores, and restructure under a more profitable business model... My store is one of the most profitable, so I am good, but I have been looking for something new since I received my MBA last June.
Borders will not survive the shrink that is coming... If you want to get a good appraisal of what is going to happen to the book business, revisit the music industry back at the release of the i-pod, then fast forward 5 years."
Jan '11
Re: Borders Bookstore Bankruptcy Reflects Excess Supply of Low Quality Books
bereket kelile
Did you know that B&N has gotten into that market of independent writers? I think it's called 'pubit' or 'epubit' or something like that. You can actually write your own books and put them on the site in the hopes of getting published. That's another interesting phenomenon altogether in the publishing industry. There's going to be more access for ordinary people. · Feb 21 at 9:26pm
I know someone who knows someone that did that. They got published and had a run made.
Jun '10
Re: Borders Bookstore Bankruptcy Reflects Excess Supply of Low Quality Books
bereket kelile
Casey Taylor
I don't know... if I decide to spend the $1800 to get all the licenses, publishing software, etc. from Adobe, and sell myself and my connections to the Ricochet reading audience, I think I could set myself up as a conservative publisher. The eBook format is, to use Election 2008 terminology, a game-changer. And it's all .pdf. · Feb 21 at 9:19pm
Did you know that B&N has gotten into that market of independent writers? I think it's called 'pubit' or 'epubit' or something like that. You can actually write your own books and put them on the site in the hopes of getting published. That's another interesting phenomenon altogether in the publishing industry. There's going to be more access for ordinary people. · Feb 21 at 9:26pm
That's amazing! Power to the people... through the market. Awesome.
May '10
Re: Borders Bookstore Bankruptcy Reflects Excess Supply of Low Quality Books
There is nothing more comforting than a book.
I do technology for a living, and I have no desire to own an iPad, a Kindle, or a Nook (the whatever from Sony, or the Courier from Microsoft (snicker)). A book has no screen to crack, batteries to recharge, operating system bugs, or critical firmware updates to download and install. A friend can borrow a book without the interference of DRM.
Unlike an eletronic document, a printed and bound book represents thought in a physical form, and literally trancends space and time between me and the author. Beyond the sweat involved in the writing process, I respect the additional efforts to produce a book: the typeface, the paper, the cover's graphic design -- these things set the tone of the message.
Borders trouble doesn't mean we're becoming illiterate drones glued to an electronic box, it means the market is saturated with that kind of service and market forces are successfully in play.
Besides, how many families today gather around the Atwater Kent 80 to catch up with the latest exploits of Flash Gorden? Moral tales are just as excitingly told in the Battlestar Galactica reboot over on SyFy.
Re: Borders Bookstore Bankruptcy Reflects Excess Supply of Low Quality Books
As someone with 20+ years in physical publishing, let me bray: the death of the big publishers is one of those moments that fills your heart with conflicted emotions: do I do the Charleston on their grave, or the Batusi? It’s as sclerotic and dysfunctional an industry as you’ll find outside of Hollywood, minus the sex and implants and CGI explosions.
Editorial judgment? You have to get your book past a reader who’s a recent Smith grad living four to a room in Williamsburg, besotted with the need to find the next hot memoir about growing up bipolar in Antarctica. But you make the cut, sign a four book contract: hurrah! Your editor leaves: you’re forgotten. Your book needs publicity to get the word out: no. Wait for reviews. You get good reviews: so you don't need ads! Oh, and between you and me? Ads don’t really work. Promotion? No clue.
I managed to get eight books published by major publishers, so it’s not sour grapes. Traditional publishing is done, it’s over. There will be a transitional phase where the covers aren’t as professionally spiffy as before, but we’ll deal.
Oct '10
Re: Borders Bookstore Bankruptcy Reflects Excess Supply of Low Quality Books
fullfrontal
bereket kelile
Did you know that B&N has gotten into that market of independent writers? I think it's called 'pubit' or 'epubit' or something like that. You can actually write your own books and put them on the site in the hopes of getting published. That's another interesting phenomenon altogether in the publishing industry. There's going to be more access for ordinary people. · Feb 21 at 9:26pm
I know someone who knows someone that did that. They got published and had a run made. · Feb 21 at 9:31pm
That's interesting to hear. What kind of book was it? Did they write as a hobby or was it part of their work? It makes me want to put more effort into writing.
Nov '10
Re: Borders Bookstore Bankruptcy Reflects Excess Supply of Low Quality Books
I am not sure I buy into the premise that too many books brought them down. The Borders and Barnes and Noble models worked for a long time. It just got replaced by a better model for the age. Its not like Blockbuster busted because there were suddenly too many low quality books out there.
The inherent problem with the two giants is that they are basically subsidizing for the general public a place to drink coffee, mingle, do your homework, work on a presentation, and possibly leaf through the book you plan to purchase from Amazon.
Jul '10
Re: Borders Bookstore Bankruptcy Reflects Excess Supply of Low Quality Books
My iPhone runs iBook, Nook, & Kindle, all free apps. There is only Kindle for the Mac, though I can read my 1000+ pdfs and txt from FictionWise.com and Project Gutenberg (Gutenberg is where most of this free classics material seems to come from.) I have every issue of Analog Science Fiction since 2005 in PDF from FictionWise as well. I am told they were bought up by Barnes & Noble a year or so back.
It is not possible to compete with Amazon on price or breadth of selection, and the net is enabling the culture to fragment at an incredible rate. Tastes are becoming more idiosyncratic. Smart consumers understand that if there is value for them in browsing in a brick and mortar store, they must buy something at such a store on a regular basis.
I like the idea of a book store as a safe place to meet the opposite sex. It never worked when I was a kid, I had to bring my own or it didn't happen.
Mr. Lileks: I live for the covers. Tell me they won't chintz on the covers. Gaughn, Di Fate, Freas, Frazetta,... [Babbles incoherently for days.]
Jan '11
Re: Borders Bookstore Bankruptcy Reflects Excess Supply of Low Quality Books
I used to love going into a bookstore. When your passion is philosophy, books are your kitchen, your lab, your garage, and <insert workspace here>.
But have you checked out the philosophy section lately?
The rest is New Age theory, smug screeds by physics professors who think that string theory explains everything (when they need to re-examine the fraud of string theory), and ever more books about learning everything in kindergarten. (If I learned everything in kindergarten, why the hell do I need this book?)
As far as I'm concerned, they can burn every modern bookstore and I wouldn't shed a tear.
Remember the chick-flick "You Got Mail" where the quaint, old-fashioned bookshop was replaced by the huge mega-store? Now they're both gone, and Tom Hanks and Meg Ryan are both unemployed. Ha! There IS justice!
Dec '10
Re: Borders Bookstore Bankruptcy Reflects Excess Supply of Low Quality Books
It's probably more true than not that Amazon, not the Kindle specifically, has caused Borders' demise. But it's odd, isn't it, that Borders was the only major bookseller not to have their own digital e-reader?
I bought a Nook from Barnes & Noble, and my dad one, too, and I love it. I now buy all my books from BN.com via my Nook, because it's easy and fast, and relatively cheap. In addition, I just learned how to check out e-books from my local library and put those onto my Nook, too. For free.
May '10
Re: Borders Bookstore Bankruptcy Reflects Excess Supply of Low Quality Books
Borders here in Australia put out the Kobo reader last year. I didn't get one but apparently it was selling well. I'm still undecided about getting a Kindle although I use the Kindle app on my iPhone to get what I want.
While I love going into Borders and stretching out on the big comfy armchairs, their prices were pretty exorbitant. I would only buy books from them if I had a discount coupon. Otherwise there's the Book Depository or Amazon.
I still like getting books and I suspect that there are still people like me around the place. I like touching them, turning pages and scribbling all over them. And I like lending them to people. It's hard to lend ebooks.
Jun '10
Re: Borders Bookstore Bankruptcy Reflects Excess Supply of Low Quality Books
"Editorial judgment? You have to get your book past a reader who’s a recent Smith grad living four to a room in Williamsburg, besotted with the need to find the next hot memoir about growing up bipolar in Antarctica."
This perfectly describes another group of gatekeepers ---- college admissions representatives. They review thousands of applications looking for that bipolar kid from Antarctica and will do a happy dance if he's also bisexual.
Jan '11
Re: Borders Bookstore Bankruptcy Reflects Excess Supply of Low Quality Books
bereket kelile
fullfrontal
bereket kelile
Did you know that B&N has gotten into that market of independent writers? I think it's called 'pubit' or 'epubit' or something like that. You can actually write your own books and put them on the site in the hopes of getting published. That's another interesting phenomenon altogether in the publishing industry. There's going to be more access for ordinary people. · Feb 21 at 9:26pm
I know someone who knows someone that did that. They got published and had a run made. · Feb 21 at 9:31pm
That's interesting to hear. What kind of book was it? Did they write as a hobby or was it part of their work? It makes me want to put more effort into writing. · Feb 21 at 10:00pm
It was a pair of girls who wrote as a hobby and they did some kind of novella. I don't know what it's called or anything else about it.
Nov '10
Re: Borders Bookstore Bankruptcy Reflects Excess Supply of Low Quality Books
bereket! Great to see you! Where've you been, lately? By the way, do you want me to try lending you that Nook book again?
Now all I need to be happy is to see Lady Kurobara again.
Nov '10
Re: Borders Bookstore Bankruptcy Reflects Excess Supply of Low Quality Books
bereket kelile
Did you know that B&N has gotten into that market of independent writers? I think it's called 'pubit' or 'epubit' or something like that. You can actually write your own books and put them on the site in the hopes of getting published. That's another interesting phenomenon altogether in the publishing industry. There's going to be more access for ordinary people.
Thanks so much for that info. I'm going to pass it on to at least one writer I know.
Jan '11
Re: Borders Bookstore Bankruptcy Reflects Excess Supply of Low Quality Books
I own a Kindle, and use it. Still buy a few books, but not as many as before. I find the shopping experience on Kindle to be frustrating-clunky and slow. So, I still go to bookstores to browse, and then download the book after I leave. This causes me great guilt. Solution? Charge admission to bookstores, or allow me to patronize that bookstore in order to download a book. Would I pay a slight surcharge for a download to support the bookstore I'm in? Sure.
Aug '10
Re: Borders Bookstore Bankruptcy Reflects Excess Supply of Low Quality Books
There are a few thoughts that arose as I read this and the comments:
First, we forget all the bad books that have been written and sold since the printing press. There has always been a market for cheap & tawdry material. The problem for booksellers is that the internets can provide so much more excitingly cheap and tawdry material.
Second, as others have said, there is a tactile comfort to a book (or magazine) that I just cannot get from an ebook or the computer.
Third, since the invention of the book (pre-gutenburg), western thought has progressed on and been based upon a linear type of thinking. What will become of our thinking processes with the uncritical use of hypertext etc.
Fourth, as someone else asked, what do you do at book signings? My signed first edition of Deliverance is one of my prized possessions.
Finally, looking around, I have too many books. Is anyone interested in a partial collection of Modern Library Giant Editions in excellent shape? I think I have 74 out of the 146 from the original series.
Oct '10
Re: Borders Bookstore Bankruptcy Reflects Excess Supply of Low Quality Books
For all you Kindle fans, you may wish to check out (at Amazon, natch)
Free Kindle Books and How to Find Them (revised Jan. 2011) by Michael Gallagher (Kindle Edition - Jan 9, 2011) - It tells where you can get all sort of free Kindle-compatible books. Best 99 cents I've ever spent.. yes, that's right... 99 cents.
May '10
Re: Borders Bookstore Bankruptcy Reflects Excess Supply of Low Quality Books
Casey Taylor
bereket kelile
Casey Taylor
I don't know... if I decide to spend the $1800 to get all the licenses, publishing software, etc. from Adobe, and sell myself and my connections to the Ricochet reading audience, I think I could set myself up as a conservative publisher. The eBook format is, to use Election 2008 terminology, a game-changer. And it's all .pdf. · Feb 21 at 9:19pm
Did you know that B&N has gotten into that market of independent writers? I think it's called 'pubit' or 'epubit' or something like that. You can actually write your own books and put them on the site in the hopes of getting published. That's another interesting phenomenon altogether in the publishing industry. There's going to be more access for ordinary people. · Feb 21 at 9:26pm
That's amazing! Power to the people... through the market. Awesome. · Feb 21 at 9:32pm
No need to spend any money on licenses: kdp.amazon.com enables you to upload a variety of common-or-garden formats into sellable Kindle products. A real meany could create content in OpenOffice. Amazon have done this well.