The price war between Wal-Mart and Amazon (Shelf Awareness, October 16, 2009) escalated last Friday afternoon when Wal-Mart further lowered the price of 10 holiday season hardcovers--including Sarah Palin's Going Rogue, John Grisham's Ford County, Stephen King's Under the Dome, Barbara Kingsolver's The Lacuna and James Patterson's I, Alex Cross--one more penny to $8.99. Reaction to the price-slashing moves by Amazon and Wal-Mart have been strong throughout the book trade.
"If readers come to believe that the value of a new book is $10, publishing as we know it is over," David Gernert, Grisham's agent, told the New York Times. "If you can buy Stephen King's new novel or John Grisham's Ford County for $10, why would you buy a brilliant first novel for $25? I think we underestimate the effect to which extremely discounted best sellers take the consumer's attention away from emerging writers."
"What this does is accentuate the trend towards best sellers dominating the market," said Bill Petrocelli, co-owner of Book Passage, San Francisco and Corte Madera, Calif. "You have a choke point where millions of writers are trying to reach millions of readers, but if it all has to go through a narrow funnel where there are only four or five buyers deciding what's going to get published, the business is in trouble."
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Terry Lucas, owner of the Open Book, Westhampton Beach, N.Y., told Newsday that she "worries that the casualties in such a war won't be either of the combatants, but people like her."
"I sighed a deep sigh," she said. "There's no way I can pay my rent and buy my inventory and compete with that." She also noted that her "customers come to me for a reason. We sell customer service, knowledge--and you can't do that for $10."
Richard Klein, owner of the Book Revue, Huntington, N.Y., "said the store relies on all kinds of books--classics, specialty books, nonfiction, wholesale bulk sales to schools--as well as events to draw customers."
"Our business is pretty good," he added. "It's holding up pretty well. . . . Bestsellers are not the strength of independent bookstores. We don't live and die by the bestsellers. . . . What goes on between Amazon and Wal-Mart affects them more than it affects us."
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On the blog for Skylight Books, Los Angeles, Calif., Emily Pullen noted that as "the Wal-mart/Amazon price-gouging war that commenced late this week suggests, the corporate (and cultural) obsession with discounting has gotten way out of control. . . . I realize that we will never reach as many people as Amazon does. And we will NEVER be able to sell a new hardcover book for $8.99 (what utter ridiculousness!). Wal-mart and Amazon don't sell books, they sell products. But I also refuse to believe that people don't value what independent bookstores provide: Books, yes. But they also foster community and an educated populace."
Pullen concludes: "I'm glad you're here. I'm glad you are reading our blog. I'm glad that you value your community and civic engagement and education and entertainment and culture. I'm glad that somewhere out there, a book exists that is perfect for you, and we'll try our darndest to help you find it. AND I'm glad that you support us by buying books, but that isn't the only reason at all. Has Amazon ever told you that? Or did they just say, 'This microwave would go GREAT with that copy of Infinite Jest you just bought!'"
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And Leslie Reiner, co-owner of Inkwood Books, Tampa, Fla., shared her thoughts in a post on the the SIBA and ABC listservs, observing that "lately I have begun to feel a bit angry, or cheated, feeling that we (the book publishing and selling community) have gone so far away from everyone playing by the same rules that I realize we are not even playing the same game anymore. Almost daily we are asked to meet the Amazon price for books. Most indies can recite the whole refrain (local business benefits, etc. etc.) but nonetheless I believe that our customers who purchase books from us do feel as though they are spending more than they should . . . perhaps more than the book itself is worth. Publishers have had this enormous tie with the chains first, and big box stores, and now with Amazon. (I know this is not always a comfortable relationship, but still, we indies are always told that these other venues 'move so much more of their product' than we do.) Our market share is so small; our value to the publishers, and public seems small as well at times . . .
"Now I wonder why publishers, and authors, don't protest these practices more often, this public devaluing of their creation. Certainly the industry needs to consider the economic environment and price books so that they remain accessible to readers. But authors and publishers need to find some way to share with the public the dangers of the continued devaluation of their work. Independent bookstores are ever-flexible and will master what lies ahead, changing as needed with coming technology. I am doubtful that anything can be done to stop the price slashing, but I wish authors would use their voices, which carry such weight and respect among their millions of readers, to urge readers to consider the ultimate price they pay for purchasing their books at these hugely discounted prices."