Of Attorneys and Agents

When should an author sign up an attorney to clinch a book deal, rather than an agent? It’s a delicate question in the book world, but here’s one straight-up answer: when you’ve got a six-figure-plus deal, and you’re one of the most famous faces on the planet. “Mrs. Clinton’s deal was publicly known to be $8 million,” says Robert Barnett, the Washington attorney who played a prominent role in negotiating it. “She would have paid an agent a million two. My bill was about $35,000.” Simple arithmetic: He charges by the hour; agents don’t.

Barnett, a Senior Partner at Williams & Connolly whose 170 author clients include, besides two Clintons, Lynne Cheney, Dan Quayle, and Tim Russert, says he spends about 25% of his time on authors, the balance being litigation and corporate work. “I feel immodestly that I do this as well as anybody,” he adds, “and I know I do it more inexpensively.” It all started with a book deal for Geraldine Ferraro, and then came David Stockman, who was Reagan’s budget director. “At that point I had done one Republican and one Democrat, and I just started getting a lot of books,” Barnett explains.

Beyond the cold cash, other attorneys say, they can offer one-stop-shops for authors’ agenting and legal needs. “Lawyers provide all the same skills that agents do, but provide a whole range of skills that agents don’t,” argues Ronald Goldfarb, citing fair use questions, freedom of information act requests, first amendment issues, and libel readings — all of which mean retaining a lawyer. Plus, he says, he knows publishers and editors as well as anyone. “My little black book has been going for 30 years now, and I know their beach numbers and office numbers and which ones to go to.” Goldfarb charges a contingency fee, as an agent would, and bills separately for spinoff legal work.

Attorney Ike Williams, whose Kneerim & Williams agency now resides within the Boston office of intellectual property firm Fish & Richardson, notes that established law firms also offer logistical support unavailable to agents who fly solo. “A lot of money flows through an agency, and that takes a fairly developed back office,” he says, pointing to nuances of cash flow easily handled by large legal firms, such as filing under reciprocal tax treaties with foreign countries. Williams’ agency has about 400 clients, managed with Co-director Jill Kneerim. (They are joined by Elaine Rodgers and Alexis Rizzuto, plus New York–based agents Rob McQuilkin and Brettne Bloom.) Fees are based on a standard agent commission, but, says Williams, “The difference is you have legal advice included in that 15%.”

Moreover, says Mary Luria, Partner at New York–based law firm Davis & Gilbert, any book with serious legal problems will benefit from having a lawyer brought in at the contract stage. Lawyers also make sense for authors with multiple deals at a single house, where contracts may just need a lawyerly once-over. “One author told me it didn’t make sense that he was parting with a percentage every time,” Luria notes. Ideally, wise authors will figure out the most cost-effective strategy: “If I can add value to ICM’s comments for a client whose business interests I understand, the net result is the best contract for this author.” (Luria’s firm was recently joined by Martin Garbus, who tells PT that while he represents about 5 authors as an agent, he has no plans to take on further agenting work.)

By contrast, J. Stephen Sheppard, Partner at Cowan, DeBaets, Abrahams & Sheppard (and formerly an agent with the Paul Reynolds agency) specifically does not do what agents do — and that goes for Ellis Levine, newly Of Counsel at the firm — arguing that it does a disservice to the authors. Agents know the marketplace, the editors, and the judgments that go with placing an author, he says, although he works closely with large agencies to handle contract negotiations and other legal matters.

In the end, for most authors, agents may still be the front-line literary gatekeepers. But Barnett says he turns down 20 authors each week — indicating no shortage of interest in his services — and he’s got a few plans of his own. “My hope is to get into the world of big fiction,” he says. “Most of those are cookie-cutter deals. And those people could literally save hundreds of thousands of dollars using someone other than an agent.”

Trendspotting: Betting With Your Head

PT’s Savvy Commentators Ponder the Fallout from Another Year in Publishing

As we surveyed the smoking turf from another twelve months in the book business, it struck us that this year’s pinnacles and pratfalls were decidedly in the eye of the beholder. We asked a number of savvy publishing personalities to offer their take on the ever-shifting corporate landscape of trade publishing. Here’s what they saw.

Sara Nelson, Senior Contributing Editor, Glamour, and New York Observer publishing columnist:
Call me contrary, but I don’t happen to believe that the book business is going to hell in the proverbial handbasket, thanks in large part to some publishers’ realization that they need to use smaller handbaskets. In a year when “big” blockbusters like Michael Crichton’s Prey and Stephen King’s View From a Buick 8 performed — no matter what their publishers say — disappointingly, such so-called sleepers as The Lovely Bones and Koufax have broken the bank. (The former boasts 2.5 million copies in print, the latter a more modest, but impressive quarter-million.) The secret: betting with your head, not over it. Both books were bought for decent advances in the $100-200K range; both have more than earned out, and their writers and houses (and agents) have filled their pockets, but as a reward, not an incentive, for work well done. Does that mean Riverhead will take a bath on Kurt Cobain’s Journals, for which it paid a reported $4 million? Not necessarily, but only time, the Christmas rush, and foreign receipts will tell. Meanwhile, Little, Brown and HarperCollins are laughing all the way to the bank.

Michael Cader, Book Packager and Publishers Lunch founder:
For years media conglomerates and their publishing divisions have simply gotten bigger and bigger. But with Vivendi’s blow-up, AOL’s troubles, and some thoughtful sniping from the sidelines by New York media columnist Michael Wolff (who will expound more on the fall of the Titans in his book for Harper next year), this year you heard lots of people wondering if the mighty could grow no more. There was even speculation — or wishful thinking — that trade publishing could see a mild return to the romanticized days in which leading publishers were privately held enterprises, focused more on building lists and companies than making next quarter’s number.

What’s certain is that privately-owned publishers are showing the ability to attain meaningful scale, and the trend is likely to continue. The behemoths may have swallowed as many imprints as they can (and gotten so big that who knows if they could find buyers if they want to sell), but the back-end nuts and bolts of distribution and fulfillment look like the area headed for even further consolidation, and one path to the kind of margins and growth that investors look for.

Take Frank Pearl. He seemed like just another dilettante investor looking for glamour when he started the Perseus Books Group in the mid-’90s. With this year’s purchase of Running Press, the company has become a true mini-major and seems intent on further expansion. Interestingly, after completing the merger, Pearl and Jack McKeown decided to forgo the Running Press model of self-distributing, giving up that company’s warehouse in favor of renewing their agreement with Harper for distribution and fulfillment (minus the sales component). In another privately-held success story, Andrews McMeel closed its Kansas warehouse, shifting back-end operations to Simon & Schuster. Meanwhile S&S and Harper regularly note the positive impact of these back-end relationships (Harper is buoyed by a similar relationship with Scholastic).

PGW, on the other hand, was considered the “best of breed” independent distributor, growing so successfully that the company probably went as far as it could on its own. It turns out the unit is a perfect fit for public AMS as the company continues to expand dramatically, while maintaining a profitable division publishing specifically for the accounts they sell. Notably, PGW co-founder Charlie Winton set off on a Pearl-esque course, buying back the Avalon Publishing Group as part of the AMS deal after (like Pearl) realizing that he had transformed relatively modest publishing assets into a substantial company. Following the Perseus model, Avalon will leave its distribution with PGW, and has agreed to a joint venture imprint with Jack Shoemaker.

Of course, the biggest newly private publisher may not stay that way for long. Once-public Houghton Mifflin is in the hands of private vulture capitalists, having shed over $500 million in value from the year before, and drawing only one bidding consortium willing to come close to Vivendi’s fire-sale price. The new owners insist they’ll keep Houghton whole, at least for now. But if there’s a logic to the year’s major transactions, they’ll need to either add to the modest trade unit, sell it, or at least farm out the back-end.

Mike Shatzkin, Publishing Consultant, Idea Logical Company:
For a few years, several major publishers — notably Random House, HarperCollins, and Simon & Schuster — have been managing data warehouses to help them analyze the supply chain. In some cases employing BookScan data, and in some cases building what amounts to an in-house substitute, publishers have been able to boost the productivity of the books they manufacture.

Now, thanks largely to data feeds offered by Barnes & Noble and Borders through BookScan, this effort is spreading. Even publishers who don’t avail themselves of the full BookScan service, which aggregates point-of-sale data (but not inventory) from an estimated 70% of the cash registers ringing up books, go to the FTP site to get detailed chain-level information. The number of publishers getting BookScan data now tops 300.

The chain data allow those publishers to compute stock turn by title and by store section, giving them an effective tool to persuade buyers to raise inventory levels on some titles (and signalling that others should be sold down or returned, of course). One of the major wholesalers in the trade is looking at providing data to “employ” their publisher-vendors in the same way. As publishers use sales data to improve their own understanding of the profitability of their inventory in their customers’ stores and warehouses, the interaction in the supply chain will become more collaborative. In 2003, we can expect to see more effort by publishers’ customers to supply helpful data, with the reciprocal expectation that publishers will apply effort to “turn data into information” in ways that reduce returns to everybody’s benefit.

Karen Jenkins Holt, Managing Editor, Book Publishing Report:
The Houghton Mifflin deal aside, this was a year without any of those mega-acquisitions that we’d seen in previous years. But there were surprising combinations. One of those was the $760 million Reader’s Digest acquisition of Reiman Publications, a profitable company that was off the radar screen of the usual media and business types. The Wisconsin-based direct marketer publishes enthusiast magazines and books that are inexpensive to produce — people send in their own recipes, for example — and came to the table with a database of 32 million names, 19 million of which Reader’s Digest did not have in its database. You put those two together and you’re talking about tens of millions of people who have expressed interest in these topics. As Reader’s Digest’s problems in its Books and Home Entertainment division have been well documented, it will be interesting to see how the acquisition of Reiman can help them out. [Holt’s survey of the year in M&A activity will appear in next week’s BP Report.]

Joe Spieler, The Spieler Agency:
Of course the sky is falling, of course retail sales of books are off (and for some titles punishingly so); yes, publishers seem to be tightening up; yes, there are fewer publishers, and their imprints nest like Russian dolls (even as I write this, I have a direct line-of-sight to Bertelsmann’s new American colonial HQ, finished in dark cladding that entirely fails to obscure its banal architecture). Yes, editors’ lunch budgets (I don’t concern myself with their travel funds) are being cut, though I still seem to be eating out quite decently on the cuffs of others; yes, editors collectively seem to be doing less editing and more ushering; yes, publishers are still cutting back on vital staff.

On the other hand: how wonderful that Pat Strachan is at Little, Brown; how extraordinary that Jack Shoemaker gets to live another of his nine publishing incarnations at Shoemaker & Hoard; how reassuring that most everyone I speak to is either publishing or has sold to a trade house an “obviously” uncommercial book that is dear to his or her heart (self-serving Spieler Agency pick: The Afterword by Mike Bryan, Pantheon, March 2003); how wondrous that young editors classified as “interns” can still somehow survive on $18,000 a year (without benefits) and that even if they don’t know the novels of Sir Walter Scott, they’re still onto stuff that most of us who are into their fourth decade (and beyond) are not. And don’t we continue to feel just a tad smug that we can say of our work with books that it involves the ideas, the imagination, the creativity, and the very lives of writers?

Of Pricing and Purgatory

Two New Surveys Suggest That Book Price-Elasticity Is Getting All Stretched Out

Among the persnickety trends of 2002 was continued brow-furrowing from industry observers and surveyors about the perception that book prices are disastrously high (see article). Some have cited the ruinous effect of “increasingly ubiquitous remainders” on the one hand, and stunningly deep discounts at mass merchandisers on the other — both of which make people who pay “retail” price feel cheated. Others note that Len Riggio is hardly alone in pushing for more discount and lower prices, further pilfering publishers’ margins. And then, pity the poor book buyer. “Consumers are often baffled at the price tag attached to what appears to be little more than a mass of paper, cardboard, and ink,” declared Salon’s Christopher Dreher last month, worrying over that stumper, “Why Do Books Cost So Much?” The answer: hardcover fiction and nonfiction books don’t, at least from a historical perspective. Bowker statistics show that when adjusted for inflation, hardcover fiction prices have actually sunk by 2% over the past 25 years, while nonfiction hardcovers tumbled in real price by 27%. “I’m not very surprised,” political science professor Robert Sahr told Salon. “Trade books are one of the clearest examples of a completely discretionary purchase. They have to be price-sensitive.”

Still, the same numbers show that even when adjusting for inflation, mass-market paperback prices have shot up almost 40% and juvenile titles soared by about 60%. All things considered, Salon concluded, “what’s taken a huge bite out of America’s book budget is the rise of the trade paperback” — which has “supplanted those less expensive” mass-market titles and driven consumers to wallet-numbed distraction. “The prices are kind of astonishing,” as one sticker-shocked Barnes & Noble customer stammered to the New York Times late last year. “I keep putting things back because I look at the price.”

Price Elasticity: Stretched Out?

It doesn’t take a forensic economist to figure out why, according to a recent poll of over 1,300 visitors to the Book Reporter website, 57% of respondents said they had been buying used books for years — with 42% of the respondents citing price as the main factor. (Another 24% said they wanted to fill in their collection of an author.) More to the point, about 17% said they recently started buying used books, and roughly the same number said they had bought more than 10 used books in the past three months. But before you go and blame Jeff Bezos, consider this: by far the largest number of respondents shopped for used books at their local bookseller, and only 17% shopped for them at Amazon.com (perhaps poking a hole in the Authors Guild’s apocalyptic scenario whereby Amazon’s used-book sales will imperil literature as we know it).

Of those survey respondents that did troll for used volumes at Amazon, 41% said that if offered the used book on the same page as the new one, they’d buy the used one if it were more than 50% off. However, 38% would still buy the new book. (Taking another tack, the New York Times reported that customer loyalty at Amazon seems much higher than at BN.com: a 1% price increase at Amazon reduces sales there by half a percent, while the same increase at B&N spurs a 4% sales drop — eight times as large.) Also of note in the survey, when respondents were asked what one format they would choose if price were not a factor, 55% said they’d buy a hardcover. “To me that indicates it’s not about rising paperback prices,” says Book Report founder Carol Fitzgerald. “It’s all about the price of the hardcover.”

Meanwhile, as the swivel-screen dawn of the Tablet PC rekindles e-publishing visions, consumers may soon wonder why ebook prices are so high, according to a separate study. In the Open eBook Forum’s “Consumer Survey on Electronic Books,” which was conducted at New York Is Book Country last fall and aimed to test ebook perceptions among the paper-friendly crowd, 61% of the 263 respondents said ebooks “should be priced the same as paperback books.” The upshot: “There appears to be little price elasticity by consumers for what they will pay for eBooks.” The OeBF’s antennae were all akimbo over a different result, however: “Contrary to a commonly held industry belief, results indicate no correlation between computer skills or daily Internet use and downloading an eBook,” the OeBF reported, hammering home the idea that heightened awareness of ebooks would be the format’s prime mover. And 70% of respondents said they’d buy an ebook “if it could be read on any computer.” As the study noted: “The consumers want to read the eBook they bought on their home computer, their handheld organizer, their laptop, their personal digital assistant, and their dedicated eBook reader.” And again, regarding general book prices, the largest share of respondents said they shopped at discount bookstores.

Dodging the ‘Death Spiral’

Yet it may turn out that backpedaling on list prices is no surefire remedy for sluggish sales. There are zillions of bargain books out there to placate the price-sensitive, contends industry consultant Mike Shatzkin. “Because the act of reading a book requires a bigger commitment than money — which is many solitary hours of a person’s time — it is doubtful that price-cutting will draw too many non-readers to become readers,” he argues. Shatzkin also implicates book returns as a key driver of price inflation. “Returns have been rising,” he pointed out in a recent online debate on pricing issues, “and those books manufactured and not bought have to be paid for by the books that are bought.”

That may be so, but it doesn’t mean publishers can simply tweak the supply chain and go back to business as usual, responds Publishers Lunch founder Michael Cader, who has sounded an alarm over modern-day publishing’s “mathematical death spiral”: the toxic convergence of stagnant book dollars being spent, increasing book prices, and increasing numbers of both new and used titles on the market. In Cader’s view, boosting book sales means going back to the beginning. “To prosper, the business needs to grow. And to grow it needs new buyers,” he notes. “We spend the very early years reading to children and encouraging them to enjoy the practice and see it as a window on their world. And then we turn them over to the textbook publishers, a medicine-flavored scholastic ‘canon,’ and a marketplace with little that appeals to ‘tweens’ and, yes, one that they see as expensive.” As for adults, Cader sees hope and an instructive lesson in the significant growth in deep-discounted frontlist sold at warehouse clubs and other non-book discounters. “People who aren’t supposed to be core book buyers are grabbing what they see as an attractive deal on impulse. To me that alone says something powerful about how price can correlate to growth.”

Bonjour, M. Le Monopoly

The sell-off of French giant Vivendi’s media assets has had buy-out bankers licking their chops the world over. But what does it spell for the increasingly monolithic publishing culture in France? This month Jean Rosenthal, former President of French publisher Stock and currently a translator and consultant to the publishing business, offers a view from Vivendi’s home turf.

“He really is a very clever guy,” an investment banker commented after the announcement that Jean-Luc Lagardère had bought Vivendi Universal Publishing. It is indeed a coup you can only see every quarter-century in the book business, ending a nerve-racking spell after the departure of Jean-Marie Messier, the flamboyant President of Vivendi (and now tell-all author of My True Diary). Dodging European anti-trust regulators and putting down protests by his own compatriots, the artful Lagardère has managed to turn his company, France’s enormous aerospace-and-media concern, into the nation’s now undisputed book publishing behemoth.

How could it have come to this? When new Vivendi CEO Jean-René Fourtou arrived last July, he knew only that he had to find one thing: cash. Specifically, a liquidity infusion for a group exhausted by too many acquisitions. Selling off the company’s entertainment units — cinema and music — presented a number of touchy problems, with partners across the Atlantic deeply reluctant to cede control of Hollywood studios to non-Americans. That left one option: books. Fourtou decided at a very early stage to sell the publishing branch of the company, Vivendi Universal Publishing (VUP), a huge chunk of French letters including such prestigious houses as Laffont, Plon, Presses de la Cité, Belfond, Press Pocket, and Larousse. Before the Messier era, this galaxy of publishers bore the rather nice name of Groupe de la Cité. With a turnover of 2.5 billion euros in 2001 (1.1 for Europe, 1.4 for Houghton Mifflin), it was #1 in French publishing.

Those who have followed the buy-out blow-by-blow will know that there were three eager suitors: PAI, in partnership with Apax Partners and American funds Thomas H. Lee, Blackstone, and KKR; Eurazeo, a holding of the French Banque Lazard in partnership with American fund Carlyle; and Lagardère, who had bought Hachette more than 20 years ago when he was a leader in the arms and missile industry. When rumors of the mammoth sale began to leak, protests rang out: it was unconscionable to let le patrimoine français fall into the hands of foreign investors, and finance vultures on top of that. Lagardère rode in on his white horse, with aerospace connections to the French administration and a chummy relationship with President Chirac. Wishes from the Elysée Palace did not leave Jean-René Fourtou unmoved, and Jean-Luc Lagardère pocketed VUP.

This created an extraordinary situation. For the time being, and before any sale to other publishers to prevent a monopolistic situation, the new Hachette-VUP group represents 30% of the French trade publishing market; 80% of its paperback market; 80% of reference books, dictionaries, and school books; and 70% of the nation’s book distribution business. The behemoth has a turnover of practically 2 billion euros, a staggering ten times as much as its direct competitors: Gallimard, ranking second among French publishers, with a turnover of 235 million euros; and Flammarion, with turnover of 216 million.

Reactions were immediate. Antoine Gallimard, President of the company bearing his name, says: “It is an earthquake.” He claims to be worried not so much about freedom of expression, but about the nuts and bolts of the business: “the distribution system may well be an overwhelming burden.” Claude Cherki, CEO of Editions du Seuil, adds: “Mr. Fourtou has just taken a tremendous risk. The situation of the publishing industry in France will be unique, with the creation of an enormous group which will be a mega monster.” Groupe Albin Michel President Francis Esmenard, as usual, was more restrained in his comments, suggesting in a very British way that the nation should wait and see. (One should observe that since Lagardère will be legally bound to sell a few companies, Albin Michel would have a unique opportunity to strengthen its position in the textbook field.) On the other hand, a few voices were heard to defend Hachette’s stand. Fayard CEO Claude Durand, in a letter to Le Monde, expressed enthusiasm to see Lagardère offer a “solution, both French and realistic instead of the purely financial and essentially American propositions made by other candidates.” At the same time, Jean-Louis Lisimachio, the head of Hachette Livre, tried to reassure booksellers, who were panicked to see Hachette devour such a huge share of the French market.

Enron, N’est-ce Pas?

Jean-Marie Messier, on the other hand, has his own spin on the matter in My True Diary. It perhaps goes without saying that the title was not published by his former publisher, Hachette Littérature, but by Balland, a small independent company. The former Vivendi CEO explains that he has been the victim of a council of godfathers led by Claude Bébéar, the former President of AXA, the largest French insurance company, who loves to play the éminence grise of French capitalism. Messier admits a few mistakes, but regrets he was not given the time to show that he was right. (“Vivendi is no Enron,” he told reporters in Paris, when put on the spot about the fact that French authorities were investigating alleged corporate misdeeds under his watch.)

Whatever the reactions, the die is cast, and it is highly unlikely that any serious challengers will oppose the deal. It is true that Lagardère used a very clever stratagem to avoid problems with the European Commission in Brussels, which is always on the lookout for unfair competition. VUP was sold to Natexis, a bank which in due time will sell pieces of the prey to Hachette or to other buyers. Meanwhile, both Jean-Luc Lagardère and his son Arnaud vow that Hachette will “preserve the French cultural heritage and respect the independence” of publishers. As Lagardère ironically observes, “At the time we bought Hachette in 1980, people were shocked to see ‘un marchand d’armes’ take over a prestigious publishing house; today, they resent the fact that a big publisher could swallow a competitor like VUP. For my status, it sounds like an improvement.” As for Vivendi itself, the sale of VUP will be like uncorking an oxygen bottle. The company, which is $19 billion in debt, needs cash to reinforce Cegetel, the phone company which is a highly desirable asset in the group. The books-for-phones irony was not lost in publishing circles. “It is too bad indeed to jeopardize the status of French publishing companies,” Antoine Gallimard sadly commented, “in order to save the future of the French telephone industry.”

Tablet PC: The Ebook Savior?

It was not so long ago — well, 2000, actually — that the age of ebooks ascended upon us, an era that would, as the AAP and Andersen Consulting then dreamily proclaimed, be “a significant opportunity” for the book biz, devouring almost 10% of the total consumer publishing market by 2005 and bloating into “total projected retail sales of $2.3 billion for the trade publishing industry.” Remember RocketeBook battling Softbook, and Palm menacing Microsoft to dominate the world of onscreen reading? By 2001, of course, expectations had been brutally downsized, and last week might have seemed like the nail in the coffin, as Reuters announced that Gemstar would try to dump its ebook business, including RocketeBook and Softbook, under the feeble proviso that a sale would occur “if a buyer emerged.”

Ding-dong, ebooks are dead. So why are 350 hype-weary publishing types scrambling to attend a sold-out conference on December 5 hosted by The Open eBook Forum?

Behold the Tablet PC. Unveiled by Microsoft on November 7, the new gizmo weighs about 3 pounds and allows the user to write on it with a stylus, or read from it, thanks to an onboard copy of Microsoft Reader. Chairman Bill Gates has already boasted that within five years (the timespan of choice for futurists) “it will be the most popular form of PC sold in America.” But will early adopters shell out $2,499.99 to read on it? For his part, Chris North, VP and General Manager of Electronic Publishing at HarperCollins (and a speaker at Open eBook’s “Tablet PC Digital Publishing Conference”), volunteers that the tablet is “pretty cool.” “Reading trade books is not one of the primary purposes” in buying a tablet, he adds, but he thinks that, just as Palm Pilot users began downloading ebooks onto their devices, so will tablet owners. But this time, cautions North, publishers who survived the “extremes of over-enthusiasm and despair” will greet the new opportunity with “more realistic” expectations.

Still, they have expectations, and that’s attracted paying customers (with some seats advertised at $129 a pop) to one of the first industry conferences in a year or more. In addition, the lineup of sponsors, including AOL Time Warner, NYU Center for Publishing, and McGraw-Hill (along with the Adobes, Fujitsus, and Microsofts of the planet), suggests that all of those files weren’t digitized for naught. Most impressively, perhaps, the conference embraces not just book publishing, but newspaper and magazine publishing, making it one of the first conferences in which every medium of consumer publisher will participate.

Indeed, for those on the magazine side, the Tablet PC is a ray of hope. “The tablet introduces a whole new ballgame,” says Dan Schwartz, President and CEO of digital newsstand Qmags (also known as Qiosk). “That’s the excitement for us and the ebook space.” Qmags.com, now offering electronic delivery of eight magazine titles, including Popular Mechanics and The American Lawyer, has been plying a space also inhabited by Zinio.com (peddling e-versions of 20 magazines, such as Business Week and National Geographic Traveler), and NewsStand.com (with about 30 periodicals). Schwartz thinks the big draw is digital delivery, not onscreen reading. “There are people who read onscreen, but we think they’re a minority,” he says. Still, with the Tablet PC’s light weight and improved display, reading on your PC is easier than it’s ever been. The real trick is tapping into a revenue stream, and by Schwartz’s lights, online books may well become more like online magazines — delivered as serialized books, or even sponsored books — because the advertiser-based model simply offers more avenues for cash. “We’re really still very much at the frontier,” he adds. “It’s the frontier of the frontier.”

Algorithm, Anyone?

Despite being ritually deemed “the bane of the publishing industry” and “one of the costliest aspects of the business,” the problem of book returns remains an estimated $7 billion thorn in the industry’s side. Last year, BISG figures show, the average adult trade hardcover return rate was 37.5%, up 3% from the year before. Publishing’s response? “There is no statistical measure” for forecasting frontlist book demand at the world’s largest publishing house, says a knowledgeable source, while “gut-feel” remains the crude weapon of choice to battle supply-chain surfeit.

If Barnes & Noble has its way, action on ramping down returns may get shoved to the front burner. Two years ago, B&N went live with an inventory control system from i2 Technologies, which has introduced “very sophisticated statistical forecasting algorithms” to gauge title-by-title demand, says Anant Mahale, i2’s Program Director in Consulting. Replacing what was described as an ad hoc system, B&N’s new program tracks about 100,000 titles that contribute 80% of the bookseller’s business. Based on past order history, seasonality models, and other algorithms, the system also takes into account the vagaries of supplier lead-times — in effect, studying wholesaler or publisher shipping errors and creating a special model for each vendor — to predict how much inventory B&N needs to keep in stock. Mahale says the system, now operating at two distribution centers, has helped B&N slash its inventory levels yet keep customers happy. B&N executives have confirmed that the chain may well cut inventory levels 30–40%, saving $4 million annually, on top of a one-time $13 million inventory reduction.

To be sure, other vendors prowl the supply-chain space — among them Manugistics, which has been working with Scholastic, as well as TMS and its Bookmaster system, whose US clients include Columbia University Press — and there’s always the data provided by Bookscan to help monitor sales. But algorithm advocates say the industry’s holy grail — and a strategy B&N has “expressed a lot of interest” in — may lie in what’s known as a “collaboration solution,” whereby a distributor and publisher work off of the same forecast, so that publishers have advanced visibility into the distributor’s needs.

Mike Shatzkin’s Idea Logical Company, on the other hand, has worked with nine publishers this year on an analysis of one chain’s sales data. He thinks the returns problem is due to too many decisions, and not enough bandwidth to make them. “Barnes & Noble and Borders are trying to manage 100 million stock levels with a minimal level of automation,” he says. “What can be done at the distribution center level is important, and can make a critical difference to fill rates and inventory carrying costs. But high returns come principally from the impossibility of making timely decisions on a title-by-title, store-by-store basis.”

At B&N, anyway, the proof’s in the profits. The bookseller cited “improved margins” and “cost controls” in announcing its third-quarter profit last month. And a filing from bn.com trumpeted higher gross profit and gross margin due to “an increase in the Company’s internal fulfillment rate” as well as “more efficiency in fulfillment and customer service operations.”

International Fiction Bestsellers

It’s a Wonderful Double Life
Hot-Buttered in Finland, Dreyfus Redux in Israel, and Watusi on the Brain in Spain

Nouveau-riche restaurateur Brede Ziegler is murdered not once, but twice in No Echo, the sixth in a series of shrewdly executed detective novels from megastar Norwegian author Anne Holt. After Ziegler turns up hot-buttered and trussed, a slapdash police investigation finds that the victim was fatally poisoned — that is, on the day before he was knifed to death. While bumbling Chief Billy gropes for clues in the pantry, enter recurring Holt heroine Hanne Wilhelmsen, fresh from a six-month exile in an Italian convent. Rejected and friendless, she holes up in a secluded office to study the case’s documents, slowly working her way through the crime and back to the life she ditched when her spouse died and she withdrew to the cloister. Author Holt, whose high-wire thrillers are said to “demolish some cherished illusions about the transparency and moral cleanliness of Norwegian politics and the law-enforcement bureaucracy,” is herself a former chief of police for the Oslo region who also served as the Norwegian Minister of Justice, not to mention a stint as a television journalist for the Norwegian Broadcasting Corporation. This month she makes a splash on PT’s newly reinstated Finnish list, and she’s been selling anywhere from 24,000 to 115,000 copies of each of her books in Norway (and double that amount in Sweden), receiving the Riverton Prize in 1994 and the Booksellers’ Prize in 1995 for Death of the Demon. Meanwhile, her Swedish chartbuster What is Mine, which has fallen off the list this month after a respectable run, features new characters in Holt’s crime lineup. Rights to No Echo have been sold to Denmark (Gyldendal), Finland (Gummerus), Germany (Piper), the Netherlands (Arbeiderspers), and Sweden (Piratförlaget). Rights for all of Holt’s titles are controlled by Cappelen.

On a lighter note in Sweden, a pile of Christmas trees are heaped up on a sun-soaked beach for the ritual springtime bonfire as Viveca Lärn’s riotous novel Sun and Spring opens on the island of Saltön, situated off the Swedish west coast. Lärn’s latest effort — the fourth in a series wherein each title is set in a different season — invokes burlesques apparently attaining Joanna Trollope proportions. The current installment’s quirky cast of characters features an old favorite, Kabben Nilsson (who planned an intricate suicide in the earlier novel A Joyful Christmas); Emily Schenker, whose physician father scandalously runs off with an octogenarian; and redoubtable bee-keeper/chicken-farm proprietor MacFie, who chases a hot young thing off to Paris, leaving his barnyard menagerie behind. Cut to Gothenburg, where Emily returns home from vacation to find the local coffee shop ablaze, and conveniently jumps into the burly arms of both Christer (a Saltön police officer) and a redheaded fireman named Odd. Events take a further twist as Emily is soon hit up for cash in a grand scheme to open an adventure land at Saltön. Best known as a children’s book writer, Lärn has been published in more than ten languages and has written seven novels since she made her debut as an adult novel writer in 1995. Rights for the first three books in this series (A Joyful Christmas, The Hummer Feast, and Midsummer Waltz) have been sold to Germany (Rowohlt) and Norway (Dann & Son). Contact the Bengt Nordin Agency for rights.

“A juicy bone at long last,” pants one reviewer of Amnon Dankner’s historical novel The Boneless, which hits the list in Israel as it chronicles the life of Theodore Herzl, the “founder of modern Zionism” who, as Viennese correspondent to the Dreyfus trial, was violently affected by the period’s anti-semitism. In a novel deemed a “living, breathing, and beautifully written mélange,” the author hypothesizes that Herzl, in his anger, murdered Valentine le Désossé (aka Valentine the Boneless), a dancer at the Moulin Rouge. The plot thickens when, with a confession supposedly signed by Herzl as his only evidence, Israeli post-Zionist historian Modi writes a staggering account of the crime (sharing the pen with his anarchist wife Gaia), only to be murdered himself. The body count gets higher when another noted Jerusalem historian dies surrounded by his priceless collection of manuscripts, with a jealous wife and a vanished assistant as the only suspects. Dankner, whose style is so inimitable that his characters are said to speak “Danknerish,” has been a popular columnist for the daily Ha’aretz. None of his 13 books have been sold outside of Israel yet, but this year they’ve aroused flurries of interest post-Frankfurt. All rights are available from the Institute for the Translation of Hebrew Literature.

In Spain, Barcelona-based writer Francisco Casavella’s new novel Wild Games has been whipping up plenty of post-Frankfurt buzz, though the book has not hit the nation’s bestseller list. Said to be animated by the “blurred borders between truth and lies, and farce and tragedy,” the book is set in a town of remote shanties on the mountain of Montjuic outside Barcelona, and follows quixotic immigrant Fernando Atienza as he and fellow pariah Pepito set out in search of a certain Watusi, who is reputed to be a famous yet reclusive denizen of the district. We track Atienza in cinematic detail as he lives with his widowed mother, spending his hours fishing the dirty waters of Barcelona’s port and dreaming about the larger-than-life Watusi. Wading into “the garbage dumps of reality without falling into the squalor,” Wild Games is the first installment of the 36-year-old author’s ambitious Watusi’s Day trilogy, which is described as a novel in three parts rather than three separate books. Radiating what critics have called “self-assurance and concentrated tenderness,” Wild Games has been sold thus far to the UK (Faber), Germany (Kiepenheuer & Witsch), France (Actes Sud), and Italy (Mondadori). Contact Carmen Pinilla at the Balcells Agency for rights.

Lastly, in Poland, Joanna Olczak-Ronikier plants a family tree to rival the most baroque García Marquez saga. The Garden of Memory tells the story of four generations of the author’s family, including her grandparents, who survived World War II and Soviet prison camps. They founded the Mortkowicz publishing house, which was famous across Europe during the interwar period, and ran one of the best literary bookshops and publishing houses in pre-War Poland. Perhaps bibliophilia is genetic after all. Rights have been sold to Germany (Aufbau) and world English rights have been sold to Weidenfeld & Nicolson (UK). For rights information, contact Anna Rucinska at Znak.

Book View, December 2002

PEOPLE


Simon & Schuster’s various imprints have been trimmed over the past few weeks: Rachel Klayman has been laid off from The Free Press, Jeff Neuman has left S&S (and may be reached at neudors@yahoo.com), and Rosemary Ahern (who arrived from Dutton less than two years ago), and Kim Kanner and an assistant have departed WSP/Pocket Books.

Kris Kliemann has been named VP, Director of Global Rights at Wiley. She had been Associate Publisher at Fodor’s. In other Wiley news, Helen Witsenhausen will be retiring after 20 years at the company. . . . In children’s books, more turmoil as Random House Children’s experiences a bout of layoffs in its various imprints, with VP Marketing Andrew Smith and 8 others in art and editorial leaving the company. Daisy Kline was named as Smith’s successor. The division will move to the new Random building on December 20th. The first group from 1540 Broadway just moved over and the final stragglers will arrive in January. Meanwhile, word is that Random is a potential bidder for Houghton’s trade division, and is rumored to be looking at a Japanese venture, possibly with Kodansha. . . . Little, Brown Children’s announces that Jennifer Hunt has been hired as an Editor. She was at Lee and Low Books.

Bookspan has hired Linda Andersen, formerly VP Marketing development at Columbia House, as Senior VP, Marketing. She will report to Seth Radwell, President of the Bookspan group. No news yet on the new head of Children’s BOMC, but look for an announcement in early December.

Harper Design International has named Ali Kokmen as Sales and Marketing Manager, reporting to Harriet Pierce, Director of Sales and Marketing. He was previously at Watson-Guptill, as was Pierce. . . Walt Bode has recently left Harcourt, where he was Senior Editor.

PROMOTIONS


Lots of promotions at Random House: Libby McGuire has been named Associate Publisher, Director of Marketing of the Random House Trade Group, responsible for overseeing all marketing, publicity, advertising, and promotion for the group. Ivan Held, who previously filled the dual role of Associate Publisher of the trade group and Publisher of Random House Trade Paperbacks, will now focus on the paperback program. And Crown has promoted two executive editors. Kristin Kiser is now Crown Editorial Director, while Becky Cabaza is Editorial Director for Three Rivers.

DECEMBER DATES


On Wed., December 4, HarperCollins’ Larry Ashmead, bookseller Roxanne Coady, PW’s Daisy Maryles, Little, Brown’s Michael Pietsch, and moderator Gayle Feldman will discuss “Best and Worst of Times: Best Books vs. Bestsellers in a Changing Business.” The event, which takes place at Columbia Journalism School (Lecture Hall, 3rd Floor) at 116th and Broadway, is sponsored by the National Arts Journalism Program at the Columbia Journalism School, and co-sponsored by the Women’s Media Group. C-Span will record the panel for later broadcast on “Booknotes.” Admission is free; no RSVP is necessary. Email Gayle Feldman at feldmang@aol.com if you would like to pose a topic or question to be discussed at the panel.

On December 5 literary agent at Donadio & Olson and man-about-town Ira Silverberg will throw a 40th birthday event that will help raise funds for The Council Of Literary Magazines and Presses through a silent auction and donations. The festivities will take place from 9pm – midnight at Estate (formerly the Limelight, where Silverberg once worked as the doorman of the “VIP Room”), at 6th Avenue & 20th Street. Rsvp via rsvp@clmp.org or (212) 741-9110 x 18. Tax-deductible contributions can be sent to: CLMP, 154 Christopher Street, Suite 3C, New York, NY 10014.

The Small Press Center hosts its annual Benefit Cocktail Reception in honor of Mark Twain from 5:30-8 on December 5 at the Small Press Center. Tax deductible tickets are $65. Call (212) 764-7021 for details. On December 12 it will sponsor another workshop: “Do It Yourself Design for Books and Websites.” Held with the support of PW, the workshop takes place between 6-8 pm, also at the Small Press Center on 20 W. 44th. For further information go to www.smallpress.org.

DULY NOTED


Crain’s New York Business has published its annual “The Private 200” list of top privately held companies in the New York area (November 25 issue). Barnes & Noble’s College stores are listed at #26, with revenues of $1.25 billion. Norton is the only book publisher listed, at #174, and with revenues of $100 million, though Crain’s admits the company did not fill out the survey. Presumably Workman and Sterling never got one.

• Chris Kerr, commission rep and founder of Parson Weems under the auspices of the venerable Association of Book Travelers, organized a commemorative lunch for Coliseum Books and its managers. Our correspondent reports that former owner George Leibson is in the throes of putting together a deal to reopen this much missed bookstore formerly at Broadway and 57th Street. What he really needs now is a youthful investor who’s willing to work hard. Anyone with any ideas or inclinations can reach Leibson at (212) 749-3833.

• Mike Campbell, who has left Carlton and is now an independent sales and marketing consultant, sends PT the following report from the shores of Lake Tahoe: “This year’s National Conference of the Publishers Association of the West was held from Nov. 21 to Nov. 23 at the Hyatt Regency Lake Tahoe. PubWest, which began in 1977 as the Rocky Mountain Book Publishers Association, has grown to a trade organization serving over 200 mid-size publishers west of the Mississippi. Holly Brady, Director of Stanford University’s Professional Publishing Course, kicked off the weekend with a review of the last decade’s “roller coaster ride.” Miriam Bass from National Book Network joined Marcella Smith from Barnes & Noble and Dave Edinger from Books West to share secrets of getting bigger advances at the chains, while Bill Cartwright from Inland Press and James Butcher from R.R. Donnelly looked at evolving tools in production, including digital asset management and print-on-demand. Other seminars covered printing in Asia and managing authors through the publishing process. Traffic was strong in the adjoining trade show, perhaps because many feel that pennies saved with short-run printing might make the difference in the current market. Overall, attendees reported that these were tough times indeed for the industry; the competition is fierce, with it seems ever-fewer customers beating down the door. Yet publishers such as Mike Jones at Wilderness Press, Helen Cherullo at Mountaineers, and Gibbs M. Smith reported hopes for a good year overall.

• Larry Ashmead, continuing his “farewell tour,” spoke at the PAMA luncheon in November, and told this story, edited for space: In 1977 when Lippincott merged with Harper + Row, then-Publisher Ed Burlingame told Ashmead to dump authors Patricia Highsmith (whom Joan Kahn had originally bought), Dick Francis, and Tony Hillerman. On Hillerman, Burlingame said, “We are barely earning out a $3,000 advance and there’s no increment in sales. Get him off Indians or off our list!” Ashmead concludes, “When Bill Shinker came on board as a marketing genius he agreed with me,” and the rest is publishing history.

PARTIES & EVENTS


November was a big month for anniversaries and parties: The Literary Guild celebrated its 75th anniversary at Bookspan’s annual party at the Waldorf on November 6th, and AMS celebrated its 20th anniversary at The New York Stock Exchange on November 7th. S&S had a big bash for Mary Higgins Clark and daughter Carol at the New York Athletic Club on November 20th — the night of the National Book Awards. HarperCollins threw a party at Vue for the publication of Michael Crichton’s Prey on Nov. 25.

MAZEL TOV


To Bloomberg Press’s Sales & Marketing Director John Crutcher and wife Beth on the November 19th birth of Kira Evangeline.

Belated congrats to Riverhead’s Julie Grau on her Venetian nuptials to Adam Stern, right after Frankfurt.

The Book Beat

Amid Booming Book Biz Coverage, Critics See ‘Gaping’ News Holes

First there was Keith Kelly at the New York Post. Then there were the hot-shots at Inside.com, and thus dawned a new era of frenzied jockeying among daily media scribes to fling arrows into the side of the homely book publishing business. While stalwarts such as Kelly have been in the trenches since the days when editors from Condé Nast and Random House were kissing cousins, it was the late ’90s promise of electronic publishing — and the seductive story of Amazon.com and all those other high-flying digerati — that brought klieg lights shining down from every media outlet on earth.

Ironically, however, you can blame the latest boom in book-biz gossip on the demise of Inside, for when the talent-packed media site backed by Kurt Andersen went kaput in 2001, it drove a mini-diaspora of hungry media reporters into the business pages, two of whom landed at the New York TimesDavid Carr as Media Reporter and Lorne Manly as Deputy Media Editor — and another two of whom hit the New York Observer, which is intently beefing up its book page. But despite the tooth-and-nail rivalries among outlets like the Post’s Kelly and Paul Colford at the Daily News, or among startups such as Publishers Weekly’s daily email and Michael Cader’s Publishers Lunch, some observers are wont to notice big-time holes in industry coverage, not to mention shrinking book review space, what with all those ad-poor book sections on the newsroom floor. Still, one reporter’s news hole is another’s opportunity, and there’s no shortage of book-centric commentators on the prowl for buzz.

Inside the Times

But where’s the Gray Lady in this book-media blitz? Those scanning the New York Times for book coverage in recent months will have noticed that over the summer, book beat reporter David Kirkpatrick abandoned his alternating Dave Eggers and Bertelsmann fixations to delve into the daunting conglomerate-scape of AOL Time Warner — and he’s now serving up (most recently) news on regulatory inquiries into beleaguered e-tailer Homestore.com. Kirkpatrick (not himself an Inside alum) gets credit for ramping up what some considered a lackluster beat. “For the first time in a long time on that beat, David came in and really made something of it at the Times,” says one publicity executive. “There was no human being on earth who was going to out-work David Kirkpatrick.” In Kirkpatrick’s stead, Times media scribe Felicity Barringer has been filling in, writing on the plethora of political books, and Bill Goldstein has written on book launches that emulate opening day at the movies. Meanwhile, the Times arts section has been cranking up its books features. Recent arts-section front pages have seen correspondent Stephen Kinzer covering the Poetry magazine bequest from Ruth Lilly; culture writer Dinitia Smith on the George Orwell parody Snowball’s Chance; and Mirta Ojito on the twentieth anniversary of Florida retail stalwart Books & Books. The Times declined to comment on plans for its book coverage, but we’re told Richard Bernstein is leaving the paper’s daily book review section to become Berlin bureau chief, replacing Steven Erlanger, who will be heading up the culture desk.

Sniffing an opportunity, perhaps, the New York Observer has unleashed several reporters on the industry, after a bit of a publishing-beat hiatus in the wake of Elizabeth Manus’ departure in late 2000. Inside alum Joe Hagan, who joined the paper last summer, is now the Observer’s lead book reporter (he was the first to write about the Langewiesche/blue jeans at ground zero controversy), while former Inside books editor Sara Nelson is contributing a biweekly column called “Between Covers,” which she describes as “more impressionistic and opinionated” as opposed to the “real beat reporting” of her colleagues (a third reporter, Rebecca Traister, has also been covering book stories). According to Maria Russo, the Observer Senior Editor who oversees publishing coverage, a mandate has come down from Editor Peter Kaplan to put the book biz in the same league as the paper’s media coverage. “Obviously we have to break news whenever we can,” says Russo, who came over from the New York Times Book Review, and, before that, was books editor at Salon. “But we can also give people more of a broad view of the culture of publishing and its place in the city. There’s no one doing that anymore. Hopefully we’ve got a one-two punch that will get people reading.” Indeed, it’s precisely those punches that have made publishing veterans leery of the Observer’s cutting style, even as they lap up its juicy tidbits. “It’s fun to read. It’s less fun to be in,” says one executive. “They’re always going to go for the more personal detail, or the more unflatteringly revealing fact.”

Even the Wall Street Journal has increasingly tuned in to pop culture where books are concerned. Witness Journal editorial board member Nancy deWolf Smith’s recent trashing of the Kurt Cobain journals, in which she crinkled her nose at their “icky” content and browbeat the mainstream press for sanitizing his writings for public consumption. Meanwhile, book beat reporter and news editor Jeffrey Trachtenberg files stories such as the recent “Hogs, Liz Taylor’s Baubles Are Big Subjects in Book World” (a look at the holiday crop of coffee-table books), while also contributing occasional reviews. “I’m looking for larger stories that would interest people who aren’t in the book industry, where there’s a good cross-section between culture and business,” says Trachtenberg, who took over Matthew Rose’s beat early this year. Since Trachtenberg is also an editor in the media and marketing group, books are not a 40-hour-per-week affair. “I spend a lot of time with other reporters, so whatever spare time I have, I fill in on the book beat,” he says.

It’s a similar case over at Business Week, where Books Editor Hardy Green has been keeping the flame burning with recent short profiles of George Gibson at Walker & Co., and Adrian Zackheim’s Portfolio imprint. But don’t expect a cover story on Judith Regan any time soon. “The bottom line is that we don’t do a lot of coverage of book publishing per se,” Green tells PT. “I have been writing these small stories. But my primary responsibility is for book reviews and overseeing the business bestseller list. Most of the other coverage comes by way of reporting on larger media companies.” Of course, the magazine gets mileage out of books for other articles, such as Senior Writer Catherine Arnst’s story based on recent books about working women, including Bitch in the House (the William Morrow book about the plight of career-oriented moms). Books get in there one way or another, Green says. “But there’s no expectation that we’re doing a comprehensive job of covering publishing.”

Then there’s the Washington Post, where Linton Weeks has been working book angles for the Style section since 1995. “The Washington Post is more intrigued by the cultural aspects of books — and of reading and writing (which are national and international enterprises) — than by the economics of publishing,” Weeks comments. “Publishing is a New York business. We don’t really track the comings and goings of editors and publishers. On the rare occasion that there is publishing news that is of vital interest to Washingtonians, however, we are more than interested — we are competitive.”

Secrets and ‘Outrageous Lies’

There’s nothing like competition to fuel a news feud. Some in publishing point out that the rise of electronic book news — first at Inside, and then with Michael Cader’s Publishers Lunch — has prompted Publishers Weekly to beef up the content of its daily newsletter PW Newsline (now $49.95 per year), as well as the old PW Daily. And there may be more competitors in the ether. MobyLives.com, for example, is a book commentary site founded two years ago by journalist and short story writer Dennis Loy Johnson. The site, based on his syndicated newspaper column of the same name, is “basically meant to be the kind of magazine about book culture I would like to read but felt was missing in the mainstream,” says Johnson. “One problem with covering the book beat is that everybody’s in bed together,” he adds. “The New Yorker runs stories that are excerpts of books by Random House and written by people from the New York Times. Those places can’t cover each other objectively, and I think they’re really missing the news. It’s a gaping hole and an obvious one.” Last April, the 45-year-old Johnson wrote a column about why book prices are so steep, fanning the flames after Len Riggio’s ultimatum to publishers to lower their list prices. “People ought to know that B&N is making 60% of that cover price, and the publisher is probably making less than 10%,” argues Johnson. “You have to report things like that. You can’t just report Len Riggio’s outrageous lies.”

Along with partner Valerie Merians, Johnson also runs Melville House Publishing, which recently brought out B.R. MyersA Reader’s Manifesto, the “attack on pretentiousness in American literary prose” first published in the Atlantic. (Both that title and the widely reviewed Poetry After 9/11 are up to 12,000 copies in print, and there’ll be five new titles next year.) Johnson’s syndicated column, however, has not fared quite as well, with several newspapers recently giving it the axe. “Some papers can’t pay twenty bucks to run the column any more,” he says. “These are grim times for book coverage, and that’s one of the reasons the website has become so popular. People miss that.”

Still Smokin’ at CIROBE

Take a tourniquet to the supply chain if you like, but order pads will still be scorching hot at CIROBE, the indomitable remainder and promotional book fair that hit the Chicago Hilton from Oct. 25 – 27. “Our best show yet,” crowed a show spokesperson, and indeed, no amount of inventory management can seem to dent the stockpiles here, with buyers and sellers alike chalking up steady traffic amid container-loads of remainders, overstock, hurts, and promotional goods. “We found a number of new customers,” says Deborah Hastings, Publisher of Federal Street Press, attending the fair for her second year. “It was a great show for FSP.” And it was an even greater show for Fairmount, a major Canadian remainder dealer, whose nearby booth was sacked by eager buyers the first day and hosted a constant stream of fairgoers thereafter. But after buyers had sated themselves with the inventory of the remainder dealers, Hastings reports, they warmed to promotional publishers, who could offer wares that were just as interesting, but not limited in terms of availability. “Buyers were serious and businesslike,” she adds. “They spent time discussing what they needed. And then they placed orders.”

One such buyer was Harvard Book Store’s Carole Horne, who says the store has been attending since the show’s beginning more than a decade ago. Part of the fair’s appeal, she explains, is that its timing allows her to acquire books before Thanksgiving for holiday selling. She did note, however, that she and remainder buyer Jerry Justin weren’t seeing the big books as early as they once did, especially for serious nonfiction titles. Publishers now seem to hold on to these for 18 months from publication, which gives the paperback edition some breathing room (a courtesy, we note, that used to be required by contract). Meanwhile, hurts are a larger piece of Horne’s business, now that they can be bought by title and not simply as assortments. All in all, Horne says, remainders represent a significant — and growing — share of the store’s business, and she’ll certainly be coming back for more.

Some buyers suggested that the action had slackened a wee bit compared to previous years, and Book SalesMel Shapiro pointed to the advent of two competing events that may be stealing some of CIROBE’s thunder: the ONBOARD show in Nashville (at the end of August) and the Spring Book Show in Atlanta (deemed “the nation’s second-largest remainder show,” it will kick off on February 28). Other buyers, however, declared themselves fat and happy. Book Club of America Founder Albert Haug, who invented and has exclusive arrangements with a number of suppliers — including S&S, Rodale, National Geographic, and Kensington — says he commits to a certain number of hurts and remainders based on the previous year’s sales. His take on the show? “The number of quality titles is better than ever before,” he boasts. “Business is booming.”