The Snowblog

Just doing the accounts...

posted by Emma on 31 Jul 2008

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...and one invoice stands out. It's for £587.50 - not a small sum, indeed greater than my monthly salary - and it's for promotional support for a work of fiction published this summer. Promotional support, to the uninitiated, is the amount of money a publisher pays to a retailer to cover the costs of promoting a title. You and I both know that whilst it does cover some of the costs, it's a rather blunt instrument (it's a flat rate, so it's not like retailers calculate the actual costs each time). This particular invoice covers one week's front of store promotion in a chain retailer.

Having worked in retail for most of my adult life, I know that it's impossible to get all stores to do what you want them to do, at the right time. And for a promotion that lasts only a week, a retailer would have to be pretty world class to get all the stock in the right place, displayed correctly, stickered correctly and on sale. I bet that only half the stores were running the promotion on Day 1. I bet that 30% of stores never had the stock out at all.

What am I saying? I don't really know. I'm not ever going to stop supporting retailers - they make our business viable - they are our cherished customers. And having worked in most retail functions, including stores, I have every sympathy with the challenges they face. I guess all I'm saying is that £587.50 is a lot of money, but I don't think we'll necessarily have got what we paid for. Remember my story about Xmas 2006, where we experienced 19% promotional compliance? (i.e. stock was only visible in 19% of the places it should have been.) Our business can flourish on the trading terms we have down on paper. It's just real life that gets in the way sometimes.

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Comments: 2


So - did you see any evidence that the promotional support worked? Was there an uplift in sales for that week? A lower than usual returns rate for the title? Re-orders from the chain?

Can you lease let us know what you were supposed to get for your £500 and whether or not you think it was worth it.

Ta

M


One doesn't expect an uplift in sales; rather, just 'sales'. If a book doesn't get selected for promotion, it sells zero copies (pretty much). So it's all or nothing.

Returns rate: too early to say as books can be returned up to 18 months from invoice. Again, if it hadn't been promoted, it wouldn't have had any sales so returns would be nice and low, haha. You can guarantee returns on any promotional activity of at least 10%, usually 20%, often 40-50%. Just had a request in this morning on another title (same retailer though) for an almost 100% returns request.

Re-orders: not for a week's promotion. Wouldn't expect it. What I would hope for is that sales are so good that they agree to promote it for a further week, or month. That didn't happen.

Was it worth it: as I say, if you don't promote, you have extremely low sales. You're meant to get stock presented on tables in the agreed number of stores. It's hard to monitor that. No, it probably wasn't worth it on this occasion but I don't have a choice if I want to do something with the books we've printed rather than have them sit in our warehouse.

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