Eternal Thinker - Publishing houses in market conditions.

*********************** Eternal Thinker ************************ 

                        Maxim STERLIGOV

           PUBLISHING HOUSES IN MARKET RELATIONS

                     (C) M. Sterligov, 1995.

   The current situation in the field of book publishing and bookselling
ation can be characterized as follows:
  1. A sharp drop in demand for book products due to
decline in the living standards of the bulk of consumers of this 
production and a decline in interest in the book as a spiritual value. 
  2. Intensifying struggle for sales markets between bookselling companies
mi; their expansion of the number of consumers of their goods through 
the ability to establish business connections with small wholesale traders in 
remote areas of the country. 
  3. Rapid changes in market conditions.
  4. Continuous increase in the cost of printing materials and printing
ical services. 
  5. Competition between publishing houses for the right to be the first to publish
market with a new type of product. 
  6. Reduction by many publishers of the cost of their products
due to the purchase of cheaper printing materials, reduction 
general publishing and printing expenses. 
   Under these conditions, small ones turned out to be the most viable
enterprises with an extensive sales system. This is, as a rule,
companies combining trading and publishing activities. Show-
The following fact is significant in relation to these organizations: in the statesimilar
enterprises, the ratio of the number of publishing workers and workers
of the implementation system is one in six - one in thirty
ty. It is also worth noting that the products of such “publishing houses” are by no means
quality and good professional training are not always distinguished
ka, but there are usually no difficulties with sales - regardless
depending on the type of products they produce.

   Publishing concerns also proved resilient,
have already proven themselves in the most promising areas
fiction and popular science literature. For example: "Novos-
ty" ("World bestseller" series), "Rainbow" ("Love romance" series) 
man"), "Tsentrpoligraf" (series "Masters of action-packed detective- 
va", "Osiris" and others), "EXMO" (series "Black Cat", "Russian 
bestseller" and others), "Polaris" (series "Worlds..."). Worth noting 
It should be noted that many publishing concerns, due to structural inertia,
ry (and also, probably, due to the inertia of management’s thinking) did not
are able to take into account changes in market conditions in their work.
This could be observed in the sad example of the St. Petersburg iz-
publishing houses "TEKS/MST", "North-West", "Terra Fantastica", "Bib-
lyopolis". There are examples to the contrary. Last summer, published 
The ly house "Drofa" (Moscow) has suspended the production of artistic
books and turned to educational and popular science literature for
children. Publishing house "Polaris" (Riga),specialized only
on the publication of fiction, prepared and published collections
works by H. L. Borges and Agatha Christie. Publishing house "Terra" (Mos-
kva), whose policy was based mainly on small-circulation
"elite" publications, entered the market with a series of modern American
Kansky science fiction and fantasy in paperbacks. And such examples
a lot.
   The main trends in the book publishing market are not difficult to identify.
but:
  a) there are fewer and fewer publishing houses that do not have their own structure
implementation tours; 
  b) competition between bookselling organizations of this day;
The hour is focused precisely on sales markets, and not on the quality of production. 
duction. 
   There can be only one conclusion here: publishing, first and foremost
must be able to sell their products. All policies are published
government should be built on his ability to navigate
market situation and instantly adapt depending on
changes in market conditions.
   Today the Russian book market is distinguished by a pronounced
instability. There are several reasons for this. The main one is inflation.
The publisher’s desire to sell the product faster makes him orientate
cater to “today’s” demand, that is, the publishing program
calculated based on today's date. Most publishers
does not try to calculate possible ups and downs in the near future
falling demand for its planned products. Thanks to
thisFor most, the market is constantly oversaturated with one type or another
literature. The market constantly experiences ups and downs of interest
to intellectual literature, fiction, historical literature
tour, erotica. But the “fall” of interest in the genre does not affect the most
more prestigious series and multi-volume collected works (if
catching the regular publication of books). The most consistent in choosing
On this topic, publishing houses were nevertheless insured against
similar changes in demand. For example, the Belarusian publishing house "Eri-
Dan" published for several years the collected works of D.Kh. 
Chase, which was in stable demand, despite the fact that 
that several other publishing houses also published collected works
ny of this author. Now "Eridan" has begun production in the same
design of the collected works of Carter Brown and E.S. Gardner (for
the first volumes of which the publishing house has already received an advance payment from the op-
commercial bookselling companies). Even despite the commercial failure
the effectiveness of many of its other projects, "Eridan" since 1991
remains one of the most successful publishing houses in the CIS. These are
principles of work and the Riga publishing house "Polaris", only special
it is being published in the publications of collections of the largest foreign fans.
toasts. Following the example of publishing industry veterans, they are building their
policy of many new publishing houses.
   We can list many attempts in this direction,which ended in failure.
   These failures are due to the following reasons:
  1. Irregular publication of books due to a shortage of publishers
flattery of funds. 
  2. Poor cover design.
  3. Release of the first volumes at the moment when this requirement
the product is not in demand or there are too many similar ones on the market 
new products (the new series does not stand out among other publications). 
   If, when preparing such a long-term project, we take into account
These three factors are the key to success.
   In addition to the policy of long-term projects, there is also a policy
tactics of maneuvering (or an even tougher option - politics
quick response). Basically, this is the lot of small publications.
entities that do not have a “name” and funds for long-term projects,
but large concerns, as a rule, do not neglect this,
May: it is always necessary to make maximum use of the market situation
vat.
   The maneuvering policy involves the release of individual (outside
series) of books or, most often, brochures of a scientific and applied nature
ra. (In some cases, this may be fiction
"one-time reading" tour.)
   Preparing such publications does not require significant time:
a month, maximum two. In today's competitive environment, any
delay threatens that the project will lose relevance and
you will have to look for an urgent replacement. A lot depends here too
from meeting deadlinesprinting house. If management is unsure
financial stability of the publishing house, maneuvering policy
can have fatal consequences.
   The rapid response policy allows you to get
maximum profit, but requires incredible speed in preparation
vke project. An example of such a policy is the book “Che-
Chensky transit" or Viktor Kulikov's book "The Murder of Listyev" 
(hardcover, twelve author's sheets), which appeared on
market three (!) weeks after the tragedy.
   Many publishing houses created on the basis of book trade structures
They adhere precisely to the policy of maneuvering. They publish literature
rature of any profile: educational, applied, artistic. Such
“publishers” do not care about the quality of the text or the content
publication of the book (which often suffers from inaccuracies and factual
mistakes), nor moral and ethical considerations. Naturally, I released
publishing the book without any editing and reducing the work of the proofreader
to a minimum, they certainly keep up with market conditions,
but they discredit the “name” of the publishing house. And sometimes it is much more important,
than immediate profit.
   Constant and thorough study of market supply and demand
ke book products is one of the guarantees of success in the book trade -
le, but not at all in publishing. The publisher needs
forecasting the market situation.
   It's safe to say thatproducts using
the greatest demand is now, in six months the market will be oversaturated,
and therefore, if possible, it should be excluded from publishing
plans for the near future. Currently the most popular
The product is presented on the market:
  a) “female” romance novels, both soft and hard
covers; 
  b) modern Russian detective and adventure films
novels in both paperback and hardcover; 
  c) literature on medicine and psychology;
  d) literature on computer technology and electronics;
  e) esoteric literature;
  f) so-called “developmental” literature for children: entertaining
physical physics, chemistry, biology and the like. 
   Many publishing houses in St. Petersburg (and, apparently, in Russia)
these) are preparing books for publication in these areas. (Next
It should be noted that their implementation structures allow the publishing house
work even in conditions of market saturation.)
   One of the main tasks of marketing is collecting information
about the publishing plans of the most serious competitors and its an-
liz.
   The second, and much more difficult task of the marketing service
of any publishing house is the identification of declining/aging trends -
demand (and, accordingly, supply) for each type of line
teratures. This task is complicated primarily by the fact that statistical
technical data is practically inaccessible - for many reasons. Even
information,published in such publications as "Book Business" and
"Peterbuk" is often subjective in nature and needs 
thorough check. It is necessary to have your own independent
sources of information. These are reviews from retailers and wholesalers,
customer opinions. At the same time, you cannot limit yourself to just the area -
mi Moscow and St. Petersburg. You should always remember that the consumption
The needs of big cities differ from the needs of remote re-
gions. We should not forget that purchasing power
residents of capitals are higher. How this should be taken into account is
The marketing department also decides.
   The third, and most essential for the normal functioning
For the publishing house, the task is to identify “white spots” in the market,
of which there are still enough left, despite the irritating variety
image. "Blank Spots" is for enterprising publishers who...
Some people are not afraid to be first. Large concerns prefer not
take risks (inertia of thinking also plays a significant role here).
The "pioneers", as a rule, are small publishing houses, and
already achieved success is enjoyed by those who are fastest and most
will throw similar products onto the market. They are the ones who receive the
new profit.
   Example. In the summer of 1994, the publishing house "New Helikon" (St. Petersburg)
threw V. Kunin’s brochures onto the market, the success of which surpassed all
expectations. In the autumn and winter of 1994-1995 there were already fiveindependent
publishing structures produced modern St. Petersburg cars
ditch in a similar design: "Fallow deer" (M. Weller), "Litera" (V. Kon),
"MIM-Delta" (A. Kivinov, A. Shchegolev), "Duet" (V. Shitov, V. Barkov- 
skiy), "Yew" (V. Kozlov). 
   The system for selling book products must operate without failure.
it's clear It is thanks to a verified and extensive sales network
there are most publishing houses, although their books are “bestsellers”
cannot be named. In today's market conditions, under no circumstances
You can't expect a book to be an instant success.
The market often deceives the hopes of even the most prudent and cautious
ny entrepreneurs.
   The sales system of most bookselling firms that
either they produce the book themselves, or they take on the entire circulation for sale,
includes primarily a department that specializes
only on operations of exchanging part of the circulation for assortment. And already
sending this assortment to stores and railway con-
Another department handles the tayners. In some enterprises this
the system is so well established that the brochure has a circulation of fifty
thousands are distributed to stores and wholesale warehouses within five to ten
days. Sending the assortment received in exchange requires several
more time - three to four weeks. Two more months (on average)
its implementation occupies. This means that the actual sale period
books - at least three months. Hereapproximate percentage
the ratio of the distribution of book circulation across different real estate structures
lization:
  a) Stores in St. Petersburg and the region - 10-20% of the circulation;
  b) exchange of books for assortment in St. Petersburg wholesale bookstores
bases - 25-35% of circulation; 
  c) exchange of books for assortment in Moscow wholesale bookstores
zakh - 25-40% of the circulation; 
  d) shipping by rail containers to other regions -
15-20% of circulation; 
  e) sale at the St. Petersburg book fair - no more
2-3% of circulation. 
   Note: If a book becomes a "bestseller", then it is
Sales at the fair can reach 10-15% of the circulation.
   In any case, the exchange operation is the most important stage in the real-
lization of the book. Workers specializing in this are the highest
co-paid and privileged in the bookselling enterprise.
As a rule, these are young people with no experience in this field
less than two years and developed intuition. In fact, it depends on them
the assortment of the enterprise, and therefore its financial well-being
receiving.
   There is another form of work - cooperation with one or
several wholesale booksellers, but for this
publishing house products must not only be competitive
noah, and enjoy constant popularity among consumers.
   Let's consider the advantages and disadvantages of each option.
  1. Sales department in the structure of the publishing house. Network creation
implementation -the process is long and labor-intensive. First of all, neo- 
We need qualified workers, in whom, it must be said, 
All booksellers are interested. The salary of such a worker is 
ka on average is one to two million rubles per month, to him 
A certain percentage is also paid from each transaction. 
   Such employees always want to be sure of their future and
prospects of the company for which they work. To attract qualified
numbered workers, it is necessary to produce products that
will meet the requirements of today's market.
  2. Work with wholesale warehouses. Two years ago it was the most
a common form of book sales by publishing houses. After 
crisis of 1993-1994 the authority of many wholesale enterprises 
staggered - although the reasons for this were rooted in short-sighted 
the policy of the publishing houses themselves, namely in the overproduction of fiction 
national literature of some genres. 
   It must be said that most companies that previously dealt only with
trade, have now created publishing departments and prefer
They are reluctant to work with products that they produce themselves.

   There are other factors in the reluctance of publishing houses to work according to this scheme.
reasons. This form of work involves, first of all, financial
dependence on the wholesale enterprise. The practice of some
traders indeed gives reason for such fears. K
besides, a significant shareprofits in any case come from
trading enterprise.
   In order for wholesale structures to become interested in the publishing house’s products,
tours, it should be in high demand among consumers.
If the product does not meet this requirement, then the publishing house
with an undeveloped implementation structure it is doomed. Create your own
the sales structure can only be sharply increased by
quality of manufactured products.
   In the practice of current Russian book publishing, advertising is directed
Lena is not aimed at the consumer, but at the small-scale wholesaler. Mostly
These are publications in the newspapers "Book Review", "Book Business" and
"Peterbuk". The only publishing house in St. Petersburg, which 
swarm tried to advertise directly to the consumer, - "North-
West". Leaflets were dropped into mailboxes informing about new 
new books. (In the West, a bookstore clerk invests in
a book, a colorfully designed leaflet with similar information.)
Such leaflets can be used for distribution in bookstores.
zinah.
   A fairly effective type of advertising is posters that use
are produced for book fairs, sent to retail stores and
wholesale warehouses.
   For advertising purposes (this method has become widespread in the West)
space) you can use the second and third sides of the cover
ki, where you can announce published books, place excerpts from
reviews, give thumbnail photographs of colorfulcovers. Yes and
the first and fourth sides of the cover should also be saturated
information about the book itself: reviews from foreign or domestic
periodicals, links-reminders about other bestsellers of this
the author, the most interesting quotes from the text of the work and
things like that. This attracts the buyer to the product, causes
his interest.
   Direct advertising on television is the most expensive and costs
it doesn't pay off. There is, however, another way - thematic
transmissions (indirect advertising). Now on television books and
little attention is paid to literature, and there are no regular television programs
in general. Of course, the creation and financing of such a project is not
is within the power of one publishing house, it requires a search for reliable
partners.
   Radio advertising (interviews with authors, reading excerpts, etc.)
similar) is less effective than any other types of advertising, but also
here you can find ways to make it effective.
   Before conducting an advertising campaign, it is necessary in advance, before delivery
books to the printing house, develop its concept and ways of its implementation
leniya.Advertising for wholesalers should start working not
less than a month before the book hits the market. Advertising for sweat
child - simultaneously with the appearance of the book on wide sale.
   However, advertising campaigns are only necessary if
if the volume of products produced by the publishing house is steadily growing
or ifthe product has no analogues on the market.
   And we must never forget that the best advertisement for a book is its publicity.
spoon, contents and author's name.
   Information is known to be of greatest value in
market conditions. Especially a stochastic market subject to
sudden changes.
   It is known that many commercial publishing and trading firms
achieve profitability of their products up to five hundred percent
(minimum profitability they can afford
in today's inflation conditions - fifty percent.) Secret
This lies in the ability to obtain and use the necessary information
ration, choose the most profitable one from the available opportunities. Not
always the methods that are used can be accepted
lemmes for a self-respecting publishing house. But take into account the experience of competition
rents are certainly necessary.
   The first step towards this is the creation of a data bank that will
include:
  a) a list of enterprises selling printing materials;
  b) list of printing enterprises;
  c) a list of publishing companies, literary agencies and original manufacturers
ginal layouts; 
  d) a list of unpublished translations and works of authorship,
of commercial interest, indicating telephone numbers and ad- 
res of their copyright holders. 
   Based on our own analysis of the market situation and opinions
some employees of wholesale bookselling firms, I would risk exposing
live your ownproposals regarding the formation of a publishing program
schedules for the near future.
   Now, due to the overproduction of hardcover books,
paperback type brochures are in high demand (format
70x90/32; 70x100/32; 75x90/32) volume from eight to eighteen 
author's sheets, in a colorfully designed cover. This is basically
entertaining literature. Works designed for intellectual
lectual reader, on the contrary, require a hard cover and strict
good design.
   As a rule, the fame of the author is of no small importance,
however, in cases where the genre is in high demand,
there is no need for this. It is enough if the series is “opened” by a famous
personal name.
   An overabundance of foreign romance novels will inevitably lead to
there is a “boom” for similar works with Russian themes. (Similar to
A similar situation arose in 1993-1994 with the Russian detective
vom.)
   Preparing such a series is certainly difficult, but publishers
there are all possibilities for this. The main task is to find authors,
who can create works of this in the shortest possible time
genre.
   Despite the fact that the market, at first glance, is saturated with detective
you, thrillers by foreign masters, there is still enough in this genre
number of “white spots”: these are representatives of the “newest” wave
American detective: Robert Parker (collection of his works
it was preparedpublishing house "TEX" and have not yet seen
light), Lawrence Sanders, Elmore Leonard, Jack Higgins (mostly
his novels written before 1973 were published), Barbara
Michaels (whose work is a mixture of love 
novel, ghost story and suspense detective), Geoffrey
Archer and Maurice West (political thrillers), Ted Alberim (spy- 
some thrillers) and others. These are numerous "sequels" similar to
the days of famous detectives. In the book published by Lenizdat
"Sherlock Holmes: Variations" is missing, for example, both novels by Joe 
on Gardner's The Return of Moriarty (1974) and Moriarty's Revenge 
(1975). There are also many novels about the adventures of Nero Wu- 
Alpha and Archie Goodwin, no longer written by the late Rex
Stout. And finally, there remain many authors of classical literature 
tectives that turned out to be almost not represented on the market: Caroll
John Daly (predecessor of L. Hammett in the hard-boiled detective genre) 
va); James M. Cahey (author of The Postman Always Rings Twice)
dy"), Julian Simons, Edmond Christin, John Gardner (unlike 
from his namesake E.S. Gardner, he was less fortunate) and others
gie.
   Now, after a year-long break, interest in literature has flared up again.
horror culture. In addition to Stephen King, who has flooded the market, in the west-
There are many authors working in this literature
genre and representing significantinterest: Whitley Streiber,
Brian Lumley, Peter Straub, Dennis Heatley, Peter Saxon, Clive 
Barker et al. 
   Demand for historical and ethnographic literature (subject to
Market Compliance: Hardcover, Limited
circulation) is always stable. The most popular destinations are:
due to note: memoirs of military and historical figures, commander-
tsev; books dedicated to folk customs, medicine, conspiracies,
omens; books about beliefs, myths and legends of the peoples of the world. Og-
Books on history are in limited, but always stable demand.
history of St. Petersburg and the region (the so-called local history
literature), guidebooks, descriptions of architectural monuments.
   Popular scientific and applied literature is now in use
increased demand, the range of this literature has constantly increased
is being read. Recommend a certain topic or book, not pro-
conducting a thorough market analysis would be presumptuous.
   The author of this article is aware that it contains
laughs at a lot of well-known facts. They were necessary to explain
opinion of today's market situation, based on which the author
proposed his concept of the work of a “medium” publishing house.
   This concept is quite real, and judging by the books released
by the largest Russian publishing houses, does not represent
a secret for many. Of course, bringing such a program to life
will requirea lot of effort and expense. Unfortunately, the fiercest competition
nation on the book market dictates its own laws, which should be ignored
it is impossible. Knowledge of them and the ability to use this knowledge is the basis
existence of any publishing house