State of the pre-sale art
Okay, Heidi found me and kinda folded me into the current "pre-sale at conventions ahead of Direct Market or not?" meringue/harangue. Like so:
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Leaving behind the steaming battleground for a moment, there’s this quiet little comment from Matt Maxwell:
I should have something to say about this, since I’m a new publisher in a position to debate a book at Wonder-Con before the official street date. I don’t have the time to devote to commenting at the moment however. Hopefully this will change over the course of the weekend.
And there’s the rub. What SHOULD Matt Maxwell do, ComicsPRO? Diamond isn’t going to help one little man with a book on any significant level. Comic shops aren’t going to order an almost unknown self published western by a creator best known as being an intelligent blogger in numbers that are going to impress anyone. Maxwell’s only business strategy is to raise awareness of his book by the means available to him — internet postings, selling directly to fans at shows, media outreach and, yes, talking to retailers.
The sad thing is that no set mechanism exists for the latter. New publishers arriving on CBIA are inevitably met with suspicion and the equivalent of a “Are you now or have you ever been a publisher who might have sold a comic outside the direct market?” threshhold that just isn’t logical in today’s day and age.
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Okay, first thing that everyone needs to know about this is that the argument isn’t necessarily about what it’s about. In other words, yes, there is concern about the actual pre-sale of books at conventions on the part of retailers who have to order their books three months of time and on a non-returnable basis. This is a valid concern.
But it seems that some folks have made this into a proxy battleground between some retailers and some publishers/fans regarding how alternative books are sold, or the perception of how they’re being sold. On the independent publisher side, there’s concerns that the DM is a diminishing portion of their actual sales, and that they have the right to shore up their profits by making sales at conventions where they cut out the chunks taken by both Diamond and the retail seller. Notice that nobody from DC or Marvel or Image, so far as I can tell has any interest in this particular discussion. Even though Marvel debuts some big-ticket items in bookstores before the DM, but that’s not being addressed at this moment.
The retailers concern, as above, is that the books they order will languish on the shelves. These books were ordered with the assumption that the DM would get the first crack at their audience, not that they’d be published for free on the internet concurrent with their DM debut or that the DM retailers would be scooped by publishers selling at a show. Now, we can argue the effectiveness of advertising books with free publication of their entire contents online (for the record, I don’t think it’s a bad idea, but publishers should let retailers know what’s going to happen before they place their orders – let the self-fulfilling prophecies fall where they may.) And we can argue whether or not comics sales are in and of themselves a zero-sum universe where one book bought at a convention or at Amazon is the loss of that sale to a retailer. I’m not a marketing genius and I’m not sure the data exists to persuasively argue either position, so it comes down to anecdotes and emotion.
Nitro, meet glycerin.
I personally don’t believe in the zero-sum model. I suspect it’s close to true when you’re talking about items with a limited shelf-life (yes, monthly pamphlets, I’m looking at you.) But for an evergreen product, like a trade collection or >gasp< an original graphic novel, the sales window is expanded, not compressed. Anything with a spine can stay on a shelf for an extended period and still have a shot at selling, as opposed to a monthly comic whose audience is coming to the stores on a weekly or near-weekly basis. So for those books, I can see the retailer frustration rise as the sales window compresses. My feeling, though, is that retailers whose sales are split between monthly/evergreen products would rather be sitting on an extra ten dollars of trade inventory than ten dollars or even less of monthly inventory. In a perfect world, there wouldn’t be that much excess at all, but we don’t live in a perfect world. If it were, then everyone would get their orders filled perfectly and they’d know exactly how much to order of what book. I know. Keep dreaming.
So the DM retailers want to protect (and I mean that in the most benign way) not only their inventory/order dollars, but they want to protect their ability to serve their audience in the face of massive transformation all across the comics industry, from the move to a “Big Two Plus” marketplace, to the growth of the trade market, to places like Amazon and other bookstores poaching their bread and butter genres/publishers, to the rise of web-based publication. These forces aren’t nearly done, either. Since the 90s, there’s been constant motion in several directions at once. So retailing ain’t easy. I’ll note, by the way, that while I use the term “retailers”, they aren’t a “big hive mind-mass” (tip of the hat to Alex at Rocketship). They’re all real people with real personalities who are really doing the best job they can with what they have.
And on the indy publishers’ side (who are equally non-monolithic, to say the least), they’re also trying to do the best by their books and the artists whose books they publish, and oh yeah, trying to keep themselves afloat and maybe even grow their readership while they’re at it. And some of them feel that they’re red-headed stepchildren in the world of the direct market, and that their larger siblings are always going to enjoy a disproportionate chunk of the pie.
Both sides in this argument are driven by concern, and to some extent, fear for their bottom lines in this changing market. This makes some retailers wary of indy publishers (particularly brand-new indy publishers), which in turn feeds the perception that the indy guys (and gals) need to build their audience where and how ever they can. Can you say “cascade”? You know where this is going.
Now, as for what I’m going to do. Good question.
is due to hit the shelves on the 26th of March. I’m just finishing the last proofreads, etc now. If all goes well, it should be printed in time for the upcoming Wonder-Con (which is in San Francisco, a city served by a number of fine comics establishments, that number shooting up to “a ton” if you count the Bay Area and points south.) Theoretically, I could sell a few copies and that may or may not have a dire impact on the regional sales of the book. I really have no way of guessing.
But then, the book would have to be ordered by retailers for those potential sales to happen in the first place. Let’s be real. I’m a new publisher, with a first book and not a ton of advertising behind it in the DM. I am actually paying to have an insert put into all Diamond account invoices this week to advertise the book. Yes, you can do that. It’s pretty reasonably priced. My account rep at Diamond was able to secure a “Spotlight On” box for the PREVIEWS that S:MM solicited in (the current issue, check page 299). I’m getting the word out as best I can through my vast network of bloggers, etc. I’ve done some things to raise visibility, and I’ve passed on others (no PREVIEWS ad – it seemed like a lot of money for real estate in part of the magazine that a lot of retailers never get to).
I’ll be doing advertising outside the DM, in the horror magazine RUE MORGUE, most notably. But that won’t hit until the month the book ships. I didn’t see a lot of value in buying an ad for a book that’s not going to be out until months after the ad runs. Yes, I miss the pre-order window like that. But the reality is, I can’t get a lot of people motivated to pre-order a book. If they see it in front of them, I get a response. I’ve found that people want what they want when they want it. Pre-ordering doesn’t figure well into that. Of course, pre-ordering makes the DM world go around (or does it? I’m curious as to what percentage of books actually get pre-ordered in the DM.) Even so, I'm pointing people to local comics retailers in the ads, telling them about The Master List so they can find a local store (yes, that's an imperfect resource, but it's an imperfect world we live in.) If I was smart, I'd send them towards the list as well. Maybe I oughta do that, too.
But will that translate into interest at the DM level so that they can pre-order STRANGEWAYS and have it on the shelves for people to pick up? My crystal ball broke on the way back down the mountain, so your guess is as good as mine.
As to the question of convention pre-sales, the one that sparked all this off, I have to say the risk of alienating DM retailers is not something I can shrug off easily. I’m not interested in taking sales out of the region before the book can make its way in the DM. Would I sell enough to make it worthwhile? How much would it actually cost, aside from the table, etc? Would any of the local retailers be irritated enough to blackball me, a publisher of a book that they’re going to order in the low single digits? Would they ask if they could get the book at cost and have me sign a stack to go back to their shops (because I’d gladly do that – and Rory Root of Comics Relief has already extended a like offer).
Making the full cover price (or with the .99 rounded off) as opposed to what I see out of a Diamond sale, seems pretty tempting, I have to admit. Particularly in my case since it’s all been money out on Strangeways (even if the book had been published through Speakeasy years ago, it’d have been money out, my eyes were open on that.) Ultimately, though, I can’t see the small number of sales I’d make at a show like Wonder-Con being worth the animosity generated over such a move. Working directly with an area retailer to help get the books in people’s hands, now that sounds a lot better.
And as a publisher of a comic like STRANGEWAYS (perceived special-interest/genre, black and white, OGN not pamphlet) I’d rather be working with retailers than cross-purposes. If it works out for both of us that making them available at cost from me (no matter how many or few they pre-ordered from Diamond), then that’s fine by me. I’m not in a position to pick and choose friends. Of course, this whole brouhaha sort of puts the cart before the horse since I was going to visit SF-area retailers this weekend and get their takes on STRANGEWAYS and talk about convention sales. So much for my big surprise…
I’ll add, that orders from Diamond are still open, so any retailer reading this could adjust their orders up or down as they see fit. Not that one little blog post constitutes anything like advance notice on the Diamond contract that “This item may be available from other venues before it is available in the Direct Market.” It doesn’t.
As for the bigger questions swirling around this whole issue, don’t expect any revelations/resolutions in the short term. A good chunk of the friction here stems from the structure of the market itself (high discounts for non-returnable merchandise versus lower discounts and returnability, a market transitioning from serial pamphlets to more durable books and exacerbating the worst qualities of both models, large publishers in franchise maintenance-mode and not expanding readership, smaller publishers doing the heavy creative lifting and taking larger risks in developing talent, audience shift and malaise whilst a new audience bubbles up from below). The position paper that started all this off, while far from perfect, at least appears to have been a starting point for the conversation, even what we end up talking about isn’t what got us all fussed in the first place.
Comments
Oh Matt, I thought I raised you better! ;)
And congratulations on surviving Speakeasy (another small press that didn't fully understand the game) to see yuor book in print.
Let me make this clear, that this is in support of DM retailers customer rights not the ComicsPRO paper.
[Even though Marvel debuts some big-ticket items in bookstores before the DM, but that’s not being addressed at this moment.]
Really, I'm not familiar with Marvel doing so. I know they've sold entities like B&N (Marvel Masterworks) the right to reprint books as has Dark horse but the DM has that exact same opportunity and these books are generally not sold to the direct market. If that's not it, what did I miss?
[These books were ordered with the assumption that the DM would get the first crack at their audience...]
No, I don't think so and it's not just a semantics thing. It isn't that DM retailers want "first crack". It's that they want EQUAL crack not second (or third if we're dealing with things like eBay flipping too) crack.
Elsewhere, I compared it to the difference between first and second run movies. If a theater contracts for a new release, say Spider-Man4 but when the prints arrive, instead of the lines of viewers they expected, there's only a handful of folks. Turns out another chain has already had Spidey4 for weeks. The theater contracted for that movie and agreed to price based on certain criteria according to their sales history. However allowing a competing merchant to show the movie weeks or more before, renders that history moot, delivering a second run movie instead (comics refers to it as backlist) and now maybe instead of 3 prints playing 6 times a day, 1 print 4 times a day will suffice. Unfortunately they've already placed an irreversible order for 3 prints and are obligated regardless of whether customers show up or not.
This is exactly what happens when a publisher offers to sell us a "New Release" and then delivers something that consumers have already been buying for weeks or more.
OK, yes, books with a spine can stay on a shelf with a chance to sell (so can monthlies in back issue bins) so in a sense they are evergreen BUT they cannot stay indefinitely. Books that cannot sell with enough frequency to justify shelf space have to go to provide space for the dozens of new titles arriving weekly.
The main argument for selling at conventions at all, pre-release or otherwise, is that the DM (although I would guess it should really just be the entire market) is not buying enough product, so the publisher must seek out sales wherever they can.
On the surface this makes some sense, however a closer inspection reveals that by virtue of selling books into the same general pool of customers that the DM sells to, they are absolutely going to cross over with buyers who historically would have bought from the DM retailers.
Now if someone is going to buy back list at a show, retailers really can't complain. They've presumably had equal access to that work and had the opportunity to sell it to all of their customers. This is not true for pre-releases where thhe DM retailer now has multiple obstacles. 1) They've ordered a new release based on historical data. 2) the demand has been diminished by presales thus leaving the retailer with more books than immediately needed and because those books equal inventory dollars they also, 3) prevent the retailer from spending those dollars to restock other titles. 4) It provides new sales history which reflects lower sales so that the next book in the series gets judged by those short sales.
Also to put a value on this, lets say a retailer orders 10 copies of a new release $15 GN at $9ea and does this for 5 titles which also end up being presold at a convention. At the end of the month instead of selling 8-9 copies he sells 5 of each leaving 25 copies at a cost of $225. Could the publisher, retailer and their customers not have been better served if the retailer had ordered 5-6 figuring there would be some crossover sales and then spent that $225 restocking other titles and/or these pre-release titles if they did sell through anyway?
The other very important thing that continually seems overlooked is that while publishers claim under support in the DM as the catalyst for (pre)selling, the only retailers hurt by the practice are.... the ones who are supporting the publishers!
Stores that don't carry that publishers work could care less, they never had a chance at that sale anyway.
So where is the wisdom in a for profit business willing to work as hard and spend as as much they claim just to break even at cons in the pursuit of marketshare in subsuming existing sales?
In my opinion the very least they should do is to alert DM retailers that when they are offering a book that they may be selling it direct to the consumer before the deliver it to us. If a book slips through the cracks and is sold without warning, it needs to be returnable. I might even be OK with an exchange for other titles from the publisher in lieu of a refund. I'd also ask all publishers to know their retail customers well enough that they can create fliers to hand to every person visiting their con booths showing them which stores locally offer their work the other 360+ days of the year that their is no con.
You want to see hunderds if not thousands of DM retailers excited that publishers are selling product directly to customers they normally serve? Prove that convention sales really are outreach and actually actively send new customers
to the stores that are investing in you every day.
And let's take Diamond out of the equation. It's just not that hard to contact retailers outside of Diamond retailers, at least not for professional publishers. Many contact me each week with phone calls and catalogues alerting me to new and backlist titles that can be ordered direct or from book distributors.
At some point publishers have to take some responsibility for their sales levels (or lack of). And someone really needs to pay attention when it is pointed out thast convention pre-sales are generally nothing more than eating dessert for dinner. It seems great at the moment but ultimately will leave you malnourished and hungry. If not we wouldnlt see the same desparation revolving around cons every year and we would have seen the sales #'s for the usual suspects growing by leaps and bounds over the last decade, instead of stagnating.
Once publishers and retailers are working together to mutual benefit, there are many more things that can be done to enhance the relationship and even benefit the consumer too but none of this can happen as long as publishers continue to operate as if anything is OK as long as it makes them a buck.
Remember that the more stores a book shows up in, the more opportunity folks will have to discover it. Conversely the more those venues perceive you to be harming their ability to profit carrying your product, the more they will choose to pass on your listings and the harder it will be to reach not only comic fans but those coveted new readers that increase market share.
Good business partners try to ensure that every deal they make serves the other as much as it serves them. If I have to worry that a company I work with to earn the money I use to care for my family, is willing to risk harming me as long as it benefits them, why do I need them as a partner?
Posted by: Cantankerous Robert Scott
| January 24, 2008 01:59 AM
Robert:
I don't have the time to give this the answer it deserves. I'm not sure when I will, frankly.
Your post points out that there is indeed a lot more to the issue than the surface. A lot.
Everyone wants more readers to pick up their books. The guys and gals who sell them, the guys and gals who write/illustrate them and the guys and gals who publish them. Retailers feel that publishers should do more to drum up demand, publishers feel that retailers should do the same, and the creators feel that as they're out there shlepping their books however they feel they can.
This particular issue is an indicator of other stuff that's going on. Or the perception that other stuff is going on (and at this point, the perception/reality division is pretty damn muddy.)
I have a lot more to say, but everything I'm writing will be ripe for mis-interpretation (this being the internet and all) and I've a four-year-old to deal with at the moment.
Posted by: Matt Maxwell
| January 24, 2008 12:13 PM