I read a story yesterday proposing a new model for bookstores. That bookstores have struggled in recent years is a secret to no one, with high-profile closures like the Borders chain making headlines, to say nothing of the many communities that have lost long-time independent shops.
Once past the bestsellers, you find an Espresso Book Machine, churning out volumes that customers have special-ordered. (In his post at Digital Digest, Sanfilippo indicates that three million titles are available for printing on demand, but in an e-mail note he tells me it’s actually seven million.)
That Book Place also has shelves and shelves carrying a mixture of new and used books, with price stickers giving the customer a variety of options. You can have a brand-new copy shipped to you the next day, or buy it used, or rent it, or get it as an e-book. If you take out a membership in the store, you can borrow a book for free, or get a copy without the Digital Rights Management (DRM) scheme that limits it to use on a specific kind of device.
In effect, the bookstore becomes a combination lending library and product showroom. “The books in the store shouldn’t be the focus of the revenue,” writes Sanfilippo. “Instead, the revenue might come from membership fees, book rentals, and referral fees for drop shipped new copies or e-book sales.”
These all struck me as good ideas, and things that . As this article points out, independent bookstores have been resilient, holding most of their business. Yet, it remains to be seen how long this can last in the face of growing e-commerce and e-reading.
I enjoy visiting bookstores, and think they have a lot to offer to customers and to the community. While some will always be able to survive as general book stores, I see a handful of strategies that can help independent stores prosper going forward.
Become More of a Third Place
Rather than simply offering items for sale, bookstores can become gathering places, encouraging customers to spend more time there for more different purposes. Mary’s suggestion of drinks for sale is a natural step in this direction; while many booksellers have a coffee bar already, it’s adjoining rather than embedded in the store. A greater integration would encourage customers to spend more time in the store, and draw potential new ones in as well. The provision of communal space that can be used for meetings and events is another possibly avenue.
Similarly, the suggestion of e-readers would make a lot of sense. It would be a way for customers to browse before purchasing titles, and access newspaper/magazine subscriptions (perhaps under the membership model suggested below). Having bookstores facilitate downloads of e-books/articles is an opportunity as well.
Physical stores will never compete with the selection of online sellers, but they can develop niches in the marketplace, and stock well in those areas. Which leads to the next point…
Add Value Through Knowledge and Expertise
The biggest competitive advantage a store can offer is knowledge and expertise. This comes from employing and cultivating knowledgeable staff who are passionate about books and reading. One of my favorite activities at a bookstore is simply browsing and discovering new titles. Having staff who are familiar with them, and can recommend new work based on my interests, is an invaluable service, far beyond Amazon’s “Customers Who Bought This Item Also Bought” function.
Give Your Customers a Stake in Your Success
I like the idea of selling memberships (a co-operative model, or membership-based non-profit/non-dividend structure may work well). Author talks, access to staff expertise, and access to books/magazines would help sell. For example, if my bookstore had e-readers (or physical copies, I suppose) where I could access a number of magazines on-site, as noted above that would be worthwhile (assuming a cost savings compared to subscribing on my own). Independent stores are unlikely to compete on price, so other benefits to members and customers are essential to succeeding.
These are just a few ideas. As much as the bookstore business facing challenges, I also see a lot of opportunity to evolve and succeed going forward.