Feb 25

Last fall, I attended the ACFW (American Christian Fiction Writers) conference in Dallas Texas, and had the opportunity to present a seminar titled: ‘Authors and Retail – How does it all work?’ During the past 18 months, I’ve had the opportunity to speak to a number of author’s groups at industry events about the ‘business side of publishing,’ which is a subject that most authors do not understand.

Publishing, after all, is a business. Authors whether or not they are getting the opportunity to publish through a traditional publishing contract,

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or are choosing to self publish their work, need to understand how the business works, especially when it comes to retail. Authors have the opportunity to dramatically affect their sales by working with retailers and understanding their needs. I will write about this topic in next week’s post.

While at the ACFW conference, I had the privilege of hearing Michael Hyatt address a room full of authors, and his topic was encouraging. I recently ran across my notes from Hyatt’s session where he shared five reasons why TODAY, is the best time to be a writer.

  1.  It is easier than ever to do the writing. More than ever before, there are conferences to attend and books to read, that teach writers how to craft their projects. Word processing and other computer programs have made is easier to get the words on paper, and go back and edit and polish without have to start over.
  2.  It is easier than ever to do market research, and engage with readers. The internet has provided a virtually limitless supply of research tools, and Google has made it possible to find almost any information a writer might be looking for. Social media, through platforms like Facebook and Twitter, have made writing and engaging with other writers and fans, a personalized experience.
  3. It is easier than ever to get into print. Traditional publishing with its royalty advances, editing schedules, marketing cycles, and traditional distribution channels, is no longer the only option. Self publishing is a viable and thriving industry for writers who choose to go this route. Self publishing is not the best option for everyone, but the same can be said for traditional publishing. Traditional publishing is also far from dead, however, the model must continue to change with the times rather than run from new ways of doing things. Both of these models are providing writers with new opportunities, which translate to more readers in more places.
  4. It is easier than ever to build a tribe. Authors can talk to their fans and have direct access to them through blogs, websites, and social media. Reading has now become a social activity and people engage around content like never before. Authors are engaging readers around their book platform.
  5. It is easier than ever to build a business around author content. This is only true, however, if authors take the time to understand the industry, and how to build their business model. The first step in the writing process, before outlines, character development, and research, must be a business plan that helps an author identify a sustainable market (group of buyers), where they can be reached, and what they are looking for.

This is a great lead-in for next week’s topic on the publishing business. Would you add anything to this list?

 

Dec 03

Ever wondered what the largest bookseller in the world looks like behind the curtain? Check out these pictures.

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Nov 26

As many of you know, Snowfall Press has created a Facebook Application that enables you to launch a bookstore on your Facebook fan page. This sales tool gives you the opportunity to create an easy, online bookstore for anyone to buy from. In fact, you can send the link (URL) from a book to a friend, or link to an image on your own website, that will take a consumer back to the product in your Facebook bookstore, where they can place their order.

If those reasons were not enough, here are five ‘best’ reasons for using Facebook.

  1. As of press time, Facebook is still free. It is free to set up a fan page, and free to load as much information about your book and about yourself on that page. The actual cost to begin marketing your content to others is pretty low if this is part of your strategy. Use your website as your main battle camp, and Facebook as your nimble outpost.
  2. More than six BILLION minutes a DAY, (more than an hour per day per user) are being spent on Facebook. Are you able to generate that sort of traffic on your website? Be where your customers are, and learn to get their attention.
  3. The average Facebook user joins two new fan or business pages per month. These pages can be used to promote your business and your writing.
  4. Facebook tools like Facebook FAN BOX and Facebook CONNECT enable interaction with Facebook, from outside the social media tool. By setting up a Facebook FAN BOX, visitors to your website, newsletter, or YouTube can become a fan of your business page without actually visiting Facebook. This has proved to be a very effective way for business to gain more fans via their website, videos, and newsletters. Facebook CONNECT is a program in which enables Facebook to interact with other sites. There are 80,000 other sites that can be connected through Facebook Connect.
  5. Your Facebook posts can go viral. No, not in the disease type of viral, but in the spread rapidly and uncontrollably – viral. This is a good thing. How do you make your posts more viral? Most people post links to things. However, most people engage with pictures and videos. In fact, photos are five times more popular than links, and videos are TEN times more popular than links.

Why do you use Facebook?

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Oct 31

Snowfall Press is first and foremost, a technology company. We produce technology for printers who want to be part of the Snowfall Print Network. We produce technology that makes it easier for authors and publishers to print their own books. We produce technology that enables authors and publishers to distribute their books across the globe, whether it is to readers or retailers.

One of the key technologies that Snowfall has recently released is called the Snowfall Facebook Bookstore Application. This application is available to any Snowfall Press customer who has both books for sale, and a Facebook Business or Fan page. The application creates a bookstore on the fan page, where fans can purchase the book directly from the author or publisher, and the order is printed-on-demand through Snowfall’s system, and drop shipped directly to the customer.

I was recently interviewed about new technology, and I talked about this new Facebook feature for authors and publishers.

 

 

For more information about the Facebook Bookstore Application, click here.

Oct 08

I ran across this information in a news post, put out weekly by Rob Eagar, owner of WildFire Marketing. He can be reached at Rob@StartaWildFire.com. In his post, Rob mentions being at a recent conference and hearing Kelly Gallagher from www.Bowker.com, comment on a survey that Bowker recently did. Here is what he said:

“A survey of 3,000 book buyers found that women, ages 30 – 44, (a coveted key demographic) discover new books in this order:

  1. In-person friend referral
  2. In-person retail store display
  3. Visit author website
  4. Review bestseller lists

What does this research mean to you?

  1. Create tools, such as free resources, that make it easy for people to tell their friends about you.
  2. Get published with a traditional publisher who can get you shelf space in the major stores.
  3. Build an effective author website.”

Of the three recommendations, both ‘1’ and ‘2’ are doable and the author is in the driver’s seat. What are ways you can help your ‘fans’ tell others about you?

  • Use Facebook to engage fans
  • Use Facebook to physically sell your product
  • Create contests and encourage your fans to share these
  • Give away content from your books
  • Engage your fans in the writing process – let them see your progress
  • Create a ‘street team’ of loyal fans who get access to special deals/content if they do certain things to help you ‘get the word out.’

Getting published by a traditional publisher is a great goal, but not something you can build your plan around. I call it the Field of Dreams strategy. Just writing the book doesn’t mean that people are going to come publish it, and eventually come read it. This solution is becoming increasingly difficult as the number of writers in the market continues to grow.

Learn to put your time and energy behind the things that you can control and that will pay dividends for you NO MATTER which publishing direction you might take.

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Aug 16

Terry Draughon is another industry veteran who has worked at the management levels of both large publishers and distributors. His expertise is helping publishers get their books placed at retail, and being the advocate for the publisher/author in the retail channel.

Terry is the Vice President of Sales for Send The Light/Advocate Distribution Solutions and calls on all of the large booksellers and chain retailers.

I asked Terry to share some of his experience with small publishers.

For more information about Advocate Distribution Solutions, click here. For more information about how Snowfall Press partners with Send The Light (STL) and Advocate to offer expanded distribution solutions, click here:

Aug 14

Sarah Bolme is the founder of the Christian Small Publisher Association (CSPA). Sarah invited me to share a seminar with her group the Sunday before ICRS started. I had the opportunity to talk about how retail works in the publishing supply chain, and what small publishers should do to be successful with sales channels like Amazon, Barnes & Noble, other chains and independent retailers.

Sarah provides great perspective on the industry and valuable marketing tips for publishers to use to be more successful. Visit her blog for marketing tips and the CSPA website for more information about how this organization can help you.

May 17

The ABA (general market booksellers and publishers) has long embraced the distributor as an important way to supply books to the bookstore market. Some of the leading players in this sector include Publisher Group West (PGW), National Book Network (NBN), and MidPoint. Publishers large and small are using these ‘consolidators’ to sell and distribute their books.

Consolidation can eliminate overhead

This phenomenon is increasing for three reasons:

  1. Retailers want to use fewer vendors, not more.
  2. Retailers are free to spend more time with their own customers rather than more time receiving product, paying invoices, and processing returns.
  3. Publishers can consolidate their sales and distribution to drive costs from their own supply chain management.

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The CBA (Christian market booksellers and publishers) has been slower to see the benefits of the distributor as a long-term solution although there have been spurts of activity in the past. In more recent years Send The Light/Advocate Distribution Solutions has become an important vendor of this supply chain solution.

Wholesale replenishment business is key to a healthy retail business. Leonard Shatzkin, in his excellent book, The Mathematics of Bookselling (Sun River Press), shares his own research of booksellers who buy into the wholesale replenishment model and see their turns go from two or three times to six or more times per year. The result is a healthier business with more choices for customers, more staff time devoted to helping the customer find what they want/need, and more cash flow.

Shatzkin spends considerable time talking about the importance of inventory and the importance of measuring how quickly a store can turn the inventory dollars on the shelves into cash flow for increased investment opportunities. He says that inventory in the average store represents more than 65% of the store’s investment, or more than four times more than any other investment a store makes. It makes sense to maximize the turns by using the supply chain to do so.

The new paradigm combines wholesale replenishment with publisher distribution. This concept brings the best of both worlds to retail – selection, speed and service – along with discounts and freight options, all combined in an easy, one-source solution. Retailers can conveniently place one order with one supplier, receive one shipment and one invoice, and are provide one address for returns. Retailers can order many types of products including products from the largest publishers in the industry at competitive wholesale discounts along with some products at publisher discounts, while always receiving the maximum discount by publisher or manufacturer. Finally, the entire order combines to give the retailer the best deal on freight and payment terms.

Send The Light (STL) Distribution offers both the wholesale model and the distributor model in one-source to retailers. Some distributors offer only a handful of publishers in one box, which doesn’t allow booksellers to conduct supply-chain management across the wide range of products they need to source. In addition, other wholesalers offer order consolidation, but don’t offer replenishment on the wide range of product that retailers need (i.e., gifts, remainders, homeschool products, etc.). And most wholesalers will go to great lengths to match discounts offered by other wholesalers.

In the end, the difference will be the best combination of selection, service and speed. For authors and publishers, this is an important part of the supply chain management strategy that needs to be deployed to help booksellers be more profitable with your books.

Mar 26

This is an interview with Les Bradford and Andy Blanks, Co-Founders and Publishers at youthministry360. Both Les and Andy have years of youth ministry and product development between them.

Q: Can you tell us a little about your organization?

A: youthministry360 is a Christian publishing company that produces a variety of Bible study curriculum for churches. We also focus on training and community building through a daily blog and social media initiatives.

Q: How did you learn about Snowfall Press?

A: We had a pre-existing relationship with Snowfall’s Vice President of Sales, Dave Sheets, through previous experiences in publishing. We heard Dave talk about Snowfall for a couple of years before the right project came along to take the plunge with.

Q: What sort of publishing model do you use?

A: At the time of writing this, we’re still relatively new as an organization, less than two years old.  We publish all our own resources through a variety of methods and vendors, depending on the product. We’re primarily e-commerce though we do have some titles in the trade channels.

Q: Why does the print-on-demand (POD) service fit your publishing model?

A: It offers us a ton of flexibility when it comes to cash flow and inventory. With traditional printing, there are set-up fees and, of course, accounts due. Because you have to order large quantities, it puts a burden not just on actual sales, but on innovation, as well. There are some ideas that are too big of a risk to commit to printing thousands of copies on the front end. It makes it easier to take the risk in a POD model where you don’t have to pay for or warehouse large quantities.

Q: What strategic steps did you take to make POD work?

A: For us it was waiting on the right title to test the waters with. We wanted to have a concept we thought would sell well so we could really observe how our systems would work, in terms of being able to market and fulfill orders. We work with quite a few vendors. We wanted to see how well POD would work with multiple logistical needs. We have been very pleased with the results.

Q: What types of books are you publishing?

A: We’re publishing books for adults who work with teenagers in the local church. And we’re publishing books that help teenagers develop their faith. We’re a company that puts a high value on quality and creativity. One of our concerns going in was whether or not the POD model with Snowfall would allow us to deliver on these values. We’ve been very pleased with the results.

Q: How do you currently work with authors?

A: We operate in a content rich environment. So many youth ministers are producing content, whether it is through a personal blog, or for their church services with youth. Youth ministry in general also values peer-to-peer training. And so there is just a lot of content development going on. We seek out some of these better writers and engage them in what it might be like to grow some of their ideas into book-length projects. We’re moving to a place where we will also entertain unsolicited manuscripts, but we’re not there yet.

Q: How are your books distributed and what sales channels do you focus on?

A: We operate as the publisher and provide commerce in a direct-to-consumer model (whereas in this case, the consumer is the church or the youth minister). We also have other partners selling our products, as well as some limited sales through traditional retail channels.

Q: With Snowfall’s emphasis on technology, how does this help your organization?

A: Being able to manage the supply to meet demand through the Snowfall account repository is a huge benefit. It gives us all the control we need to keep inventory as it should be. One of the biggest bonuses for us is the drop shipping (i.e., virtual warehouse) component of printing with Snowfall. For a light and lean company like us, this is a huge benefit. We’re also extremely excited about the upcoming Snowfall gateway to Facebook. Snowfall’s commitment to technology is part of why we publish with them.

Q: What types of marketing have you found to be successful, especially direct to consumer?

A: The most successful marketing we’ve done has been to offer incentives to our mailing list. Cultivating a strong email list is crucial. How this is done for various authors and/or publishers will vary. But for us, we’ve made growing and managing a healthy email database a priority. We’ve seen very good success when we have emailed our database with a special discount for being “insiders.”

Q: What marketing ideas would you recommend for other new publishers?

A: You can have the best content around, but if you don’t have an audience and/or a pipeline to an audience, it’s very challenging to move units. Maybe in the past the cream rose to the top. But in our experience, you have to have solid content and you have to be able to communicate directly with the purchaser. Direct communication for us happens mostly through social media, a daily blog, and as previously mentioned, a growing email database. I would also add that it’s important to go where your audience is. Utilize Facebook ads (they work). Comment on blogs your customers frequent. Aggregate content your audience may find useful and disseminate it through twitter, email, and blogs. And, don’t underestimate the importance of SEO (search engine optimization). If you can generate organic search engine traffic or even pay for some ad words, you’ll find you can bring in an audience that is primed for your message.

Q: What advice do you have for other publishers considering POD?

A: I would challenge them to consider what it would look like to in their projections (especially as it pertains to cost of goods and obsolescence) if they were to have a number of their titles in the POD model. For us, and for the other publishers using Snowfall (whom we’ve talked with!), it has opened up a creative solution for publishing that has provided us with flexibility and a new way of generating revenue. It’s a simple model to learn and adapt to. We’ve been very pleased.

For more information about youthministry360, join them on online at youthministry360.com.

Mar 13

In the previous post, we looked at two bookstores run by Phil and Turner. These characters were running their stores based on two different purchasing philosophies. At the end of the year, they both ended with the same gross profit.

However, Turner had some distinct advantages.

  1. He had more  titles (breadth of selection)
  2. He ordered more often, and could meet changes in demand more quickly
  3. More selection led to higher dollars per sale at the register
  4. Fewer units per title meant less overstock and fewer returns
  5. Faster turns meant faster cash flow, and cash is king

But wait a minute, what happened to the old adage, ‘stack-em-high and watch-em-fly?’ Certainly discount is more important on hot best selling items…right?

Let’s look at a hypothetical best-seller called Laugh Out Loud (LOL). The retail price is $20.00. The publisher is promoting the book heavily, and is offering the bookstore 52% for an advance order of 150 units. The book is successful, just like the sales rep said, and the inventory sells out in six months.

Phil loves discount and he jumps at the deal.

His sales are $3,000 (150*$20)

His cost of sales is $1,440 ($20*.48*150)

His gross profit is $1,560 ($3,000-$1,440)

Phil’s average inventory investment is 75 books for six months (150/2) at a cost of $720 ($20*.48*75). Average inventory investment means the cash is gone. It can’t be used for anything else.

Phil’s inventory turn is four times/year (150 book sold in half a year).

Phil’s ROI is $1.08 for every dollar invested in inventory on the best-seller. (gross profit/cost of sales) or ($1,560/$1,440)

Phil’s annualized return is four times the ROI (4 turns/year) or $4.32 for every $1.00. Phil earned $4.32 for each dollar he invested in the LOL promotion

Turner, being a different sort, says no to the discount and buys 25 units from his wholesaler at 40% discount. He continues to order 15 units every time the inventory falls to 10 units on the shelf.

His sales are $3,000 (150*$20)

His cost of sales is $1,800 ($20*.6*150)

His gross profit is $1,200 ($3,000-$1,800)

Turner’s average inventory investment is 18 books ((25+10)/2) or $216 (18 units*($20*.6)

Phil’s ROI is $.67 for every dollar invested in inventory on the best-seller. (gross profit/cost of sales) or ($1,200/$1,800). This is considerably less than Phil’s ROI! Not only is the ROI less, but the gross profit is $240 less too!

 

Now the rest of the story.

Because Turner operated on a Just-in-Time (JIT) inventory philosophy, his inventory turn is 16.68 times/year (150 book sold in half a year divided by average inventory of 18*2 to annualize). Because of these turns, Turner’s annualized jumps to an astounding $11.34 for every $1.00. Turner earned $11.34 for each dollar he invested in the LOL promotion!

Turner was also able to use the available cash on hand due to less inventory investment ($216 vs. $720), which was more than $500 more than Phil had to work with, to buy other titles. If Turner invests this $504 at the same rate of return, he will generate nearly $3,000 MORE in gross profit during the same six month period than Phil will earn, from the same inventory investment.

Even if Turner’s additional titles only turn twice on each dollar invested, instead of the eleven turns he sees with LOL, he will generate another $334 of gross profit during the six month period, easily wiping out the perceived discount advantage that Phil thought he had

As with retail, the publisher has to consider this same math when deciding on a print model. The old ways of ‘stack-em-high and watch-em-fly’ don’t work for the publisher either. The new model utilizes short run printing and true print-on-demand options. Retailers are maybe less important for some publishers, but engaging sales through direct-to-consumer tools are becoming more important. How does this sort of math help a publisher be more nimble? Profitable?

Something to consider.

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