EBOOKS. Or should that be e-books? Or even ibooks if it’s Apple as the vendor. The fact that the book industry can’t even agree on its basic terminology is perhaps telling in and of itself, but however we spell the word, the ebook challenge isn’t going away anytime soon — but physical books, according to some, might be. Whatever your views on the matter, you need to move fast if you’d like to see those views taken into account in Christian Retailing magazine’s latest Vital Signs survey: the deadline for entries is this weekend, no later than November 13th.

And now my thanks once again to Alban Books’ Jonny Gallant as he follows up on his earlier contribution. Are we ready? I think not: welcome to the Post-Digital Armageddon…

Jonny Gallant, MD, Alban Books

Jonny Gallant, MD, Alban Books

AFTER MY LAST UKCBD GUEST POST, I was literally swamped by 2-and-a-half suggestions that I explore the promised Digital Armageddon further. Just for you I have looked into my foggy crystal ball and examined the entrails of 3 chickens (that’s publishing lunches for you) to come up with a few highly speculative visions of the future.I have long had a publishing mantra: “The author is not the enemy; the customer is not the enemy”. It’s something worth remembering every now and then. We’re all in this together, so why does it feel like we have competing interests?

With that in mind, I have had a go at being an author (writing under a pseudonym, I may be on your shelves… though probably not) and, last Christmas, I thought I would have a go at being a bookseller: I spent a fascinating day on the shop floor of Waterstone’s West End, Edinburgh. I hope it was just a seasonal anomaly, but 80% of queries were for the latest Katie Price or the bestseller from that irritating meerkat. I was also the victim of a bookselling cliché: someone came in and said ‘I can’t remember the title or the author, but it had a blue cover’. On reflection, that may have been a set-up. What I spectacularly lacked though, was the ability to recommend suitable titles.

This leads me to my first point: More than anyone else, the Christian Bookseller has a great responsibility to suggest ‘the right book’. No matter how sophisticated the algorithm, Amazon will never be able to offer the depth of knowledge, understanding and empathy that a good bookseller can provide. It’s an oldie, but a goodie.

Those of you who have seen my book, whatever you think of its contents, will probably agree it is a beautiful object. And if the physical book, as we’ve come to call it, is to resist the challenge of the ebook, it has to look like something worth buying, worth keeping.

— Julian Barnes, acceptance speech for the Man-Booker Prize 2011.

Secondly, after years of driving down production costs and creating more and more thin-papered, flimsy paperbacks, trends suggest that e-readers will e-radicate (excuse the pun – I promise it’s the only one) these grotty-glued excuses for books. There will no-longer be the ‘disposable’ printed book. Publishers are now starting to think about making a physical book something special again. The consumer will have no idea quite how special that book is unless they can actually see it and hold it before parting with their cash. Amazon can’t offer that either.

Thirdly: The way I see it, Alban is a sales and marketing operation. Inventory management is a necessary by-product of what we do. Those of you who have ever rung us up in urgent need of 25 copies of Esler’s Conflict and Identity in Romans only to be told you will have to wait 6 weeks will know that inventory management is an imperfect science. Digital or even POD books are able to negate this frustrating problem. Sadly, this is often going to knock the B&M bookseller out of the equation.

How can we persuade people that the 20% VAT we pay on a digital book pretty much negates all the savings on print and freight?

Finally, my greatest fear for the industry is the devaluing of the book. Discounting books to consumers has led, inevitably, to readers believing that £8.99 is an unreasonable price for a paperback. It is even worse with digital product – how can we persuade people that the 20% VAT we pay on a digital book pretty much negates all the savings on print and freight? None of us in this business is working to much (if any) profit margin, but the readers seem to find this hard to believe. The way that Amazon have sold books at a loss and vilified those publishers wishing to sell their digital product at a price they choose makes me furious. Sadly, I can offer no solution to this massive problem. My concern is that it will inevitably lead to an increasingly amateur and hobbyist publishing industry.

To conclude, things have got to change and they may well get worse before they get better. In the long term, I think that there remains a market-viable argument for the high street bookseller – especially the niche and specialist bookseller. I think that the product (and the service) will gradually become more high-end. I don’t know if publishers will still be shipping books over from the US in five years time. I don’t know if, in five years time, we will purchase an unedited, poorly-marketed, terribly-designed, ill-thought out ebook and think “what have we lost?!”

Discover more…

STL UK: VAT increase – January 4th 2011

STL UK: VAT increase – January 4th 2011

STL UK HAVE ANNOUNCED that following consultations with their suppliers, “in the main” they will be absorbing January’s VAT increase by adjusting ex-VAT prices to keep VAT-inclusive prices for end consumers the same. Vatable items such as CDs, for instance, currently retailing at £14.99 will continue to retail at £14.99 by means of a behind-the-scenes adjustment resetting the ex-VAT price to £12.49:

  • Current: ex-VAT price £12.76 + 17.5% VAT = £14.99
  • After 4th Jan 2011: ex-VAT price £12.49 + 20% VAT = £14.99

To make the adjustment on their own systems, STL’s computers will be temporarily taken down on New Year’s Day and customers are advised against placing online orders “from 4pm on 31st December until 9am on 3rd of January.” Any queries should be addressed to STL’s Customer Services department.

Printed books, of course, remain zero-rated for VAT. Retailers will still need to make the appropriate adjustments in their own accounting and VAT returns to HM Revenues & Customs.

Congratulations to Her Majesty’s Government on giving us a major accounting headache in the run up to Christmas.

Lovely idea in principle: VAT, in my not so humble opinion, is nothing but legalised theft anyway, but that’s another story. Now we face the fun of selling everything that we bought in before Dec 1st at 17.5% VAT at the new rate of 15%; and all those things so carefully priced by the manufacturers with an ex-VAT price to give a nice, rounded inc-VAT price suddenly become silly prices:

  • Bar of chocolate: was £1.30; will be £1.27
  • CD: was £14.99; will be £14.67

Deep joy.

Books, of course, are zero-rated so book prices are unaffected.

One Touch from the Kingchanges everything, apparently. But a touch from the tax office — that can really stir things up.

It did for me this week, anyway. Actually, it’s been longer than a week: several weeks, in fact. My problem? Mark Stibbe’s book, One Touch from the King Changes Everything (9781860245978, Authentic, 2007, £7.99), includes a CD. Nothing remarkable about that, really: lots of books include CDs these days. But this, it boldly proclaims on the cover, is a free CD.

At this point I’m tempted to go into a Pythonesque ‘Dead Parrot’ routine about the word ‘free’… but I’ll leave that to your imagination. My problem was that they charged me VAT on it, then, adding insult to injury, the CD was missing.

Yes, you’ve got the idea: VAT on a free CD that wasn’t even there.

Now I know Jesus said to give Caesar his dues, but maybe someone can enlighten me: how does anyone, even as ruthless a revenue collector as Caesar, calculate the tax on a free, gratis and given-away-for-nothing item — let alone when they haven’t even supplied it?? So I asked. 

And I was told, in no uncertain terms, that STL had no discretion over VAT charges. So I asked again. And again. I’m a fairly persistent chap when I get a bee in my bonnet, you see: I don’t like being stung, even for as piffling an amount as 3p… er, yes, that’s what we’re talking about folks. But that 3p was costing me, because VAT has to be accounted for, in my reports to our Accounts Dept, in their reports on to Her Majesty’s Revenue and Customs… and I happen to feel quite strongly that HMRC are already ripping us off left, right and centre by taxing us on everything they possibly can. 

I was also annoyed by the marketing spin: either the CD was free or it wasn’t — shouldn’t Christian publishing houses show more integrity in their marketing? If an item is included in the price, that’s fine: but please don’t try to tell us something is free when you’re charging for it. It was time to take a stand!

I’m glad I did: I can now confirm — following a little flurry of emails — that the CD is, in fact, free and is therefore not subject to VAT. Authentic can hold their heads up high, reputation no longer under threat from allegations of improper spin! And what’s more, I’ve actually got a copy of the CD to give to my customer who didn’t get one first time around!

So I’d like to round this off with a round of applause for STL and for Janette Ivison (Customer Services Supervisor) in particular for sticking with me until this was sorted out: thank you.

The irony of the situation is that if Authentic had got it right in the first place and published the book with the CD rather than release the CD later, I probably wouldn’t have batted an eyelid… and we’d all still be bleeding off that little trickle of ill-gotten gains to HMRC…

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