We’ve posted a couple of times already about Wal-Mart, Amazon.com, and most recently Target selling ten pre-order titles from major authors for as little as $8.98. Our first post compares the low price that the three stores are stores offering with Barnes & Noble and Powell’s.
Now, the American Booksellers Association has sent a letter to the U.S. Department of Justice asking them to “investigate” the matter.
As reported in the consumer and trade press this past week, Amazon.com, WalMart.com, and Target.com have engaged in a price war in the pre-sale of new hardcover bestsellers, including books from John Grisham, Stephen King, Barbara Kingsolver, Sarah Palin, and James Patterson. These books typically retail for between $25 and $35. As of writing of this letter, all three competitors are selling these and other titles for between $8.98 and $9.00.
Publishers sell these books to retailers at 45% – 50% off the suggested list price. For example, a $35 book, such as Mr. King’s Under the Dome, costs a retailer $17.50 or more. News reports suggest that publishers are not offering special terms to these big box retailers, and that the retailers are, in fact, taking orders for these books at prices far below cost. (In the case of Mr. King’s book, these retailers are losing as much as $8.50 on each unit sold.) We believe that Amazon.com, Wal-Mart, and Target are using these predatory pricing practices to attempt to win control of the market for hardcover bestsellers.
[Snip]
For our members — locally owned, independent bookstores — the effect will be devastating. There is simply no way for ABA members to compete. The net result will be the closing of many independent bookstores, and a concentration of power in the book industry in very few hands.
Source: American Booksellers Association
See Also: A List of the Ten Books (via Wal-Mart)
See Also: See Also: ABA Asks for Government Investigation of Price Wars (via Publishers Weekly)
See Also: Book Association Challenges Retailers’ Price Plan (via NY Times)
From the Article:
David Young, chief executive of Hachette Book Group — publisher of James Patterson, whose “I, Alex Cross” is included in the discounted promotions — said he wished that the United States would emulate France’s prohibition against booksellers’ pricing books below cost. “I do think this massive devaluation of the industry’s crown jewels could very quickly be extremely harmful,” Mr. Young said. “And I would not be alone in thinking that.”
This entry was posted
on Friday, October 23rd, 2009 and is filed under Information Industry.
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