From LSI's contract
BACKGROUND ON RETURNS
Typically publishers grant booksellers the right to return unwanted and/or overstocked copies ofbooks. These books are considered “returnable”.
Sue's thoughts: Pay very close attention to this. The ONLY publishers who grant booksellers the right to return unwanted and/or overstocked copies of books are large publishers AND not only do they give bookstores that privilege but grant them other privileges as well. It is part of that warped "industry" standard return policy Simon & Schuster [and soon the other few large publishers] set up during the depression to keep bookstores from going under. The problem: once the depression ended and bookstores were able to stand on their own again, no one changed the blasted return policy and in fact, it became the "industry standard."
As books are returned, booksellers charge publishers for the cost (i.e. their purchase price) of any books returned and expect to be reimbursed. The cost of returned books is either deducted or netted against the proceeds of book sales of the publishers’ titles in the month returns are shipped to the publisher.
Sue's thoughts: If only that was how it worked. It isn't and you can research for yourself to see that there is WAY more to it than that. What's listed above is only a very, very, very small part of how it really works. Keep in mind it's part of that "warped" industry standard return policy. The only part that makes a modicum of sense.
Some booksellers will only purchase books on a returnable basis;
Sue's thoughts: Let's go ahead and say it right now. No larger bookseller such as Barnes & Noble will purchase your book unless you make it returnable by that warped "industry" standard return policy EVER, no matter what. MOST small booksellers will which is refreshing as this means a very workable "return policy" is used.
therefore, there is a probability that sales may be reduced if a title is designated as non-returnable.Sue's thoughts: LOL You bet sales will be reduced. No large bookstore will ever order your books period! But then, when you make your book returnable according to the "industry" standard, even when a large bookstore buys your book they aren't technically buying it because they get to send it right back whenever they want to and they get to do so for FREE! They don't even have to pay shipping, according to that warped "industry" standard return policy.
Publishers must weigh the risk of returns against the potential for increased sales and be prepared to reimburse booksellers for the cost of returns as they occur. Publishers who make their titles returnable typically place a designated percentage of their proceeds from sales into a fund (or reserve account) that is used exclusively to pay for the cost of future returns.
Sue's thoughts: For the publisher, and I'm not talking about the large publishers who that warped "industry standard return policy works I mean the small publisher, there is GREAT risk of returns and the absolute unbelievable hard truth is that small publishers typically NEVER get their returned books back so they're out the print cost of the book. More on that in a moment. Needless to say, the above statement is only speaking about larger publishers.
Having said that, here are the choices you get to make as a publisher if you use Lightning Source, Ingram's POD distributor. Pay very close attention.
Returns Designation MeaningSue's Experience with Lightning Source: No matter what option you choose, you NEVER, EVER, EVER, EVER will see your "returned-from-the-bookstore" book. I chose Yes-Deliver and expected to see my returned book sent back to me. Hahahahahahaha! Yeah right. I thought this because of this statement " and you would like to receive A physical copy of THE book upon ITS return."
No - Select this designation if you do not want to allow your titles to be sold on a returnable basis. LSUS will not accept returns from booksellers for any title so designated.
Yes-Deliver - Select this designation if you want to allow your titles to be sold on a returnable basis and you would like to receive a physical copy of the book upon its return. If you select this option, you will be charged for the current wholesale cost of each book returned, plus a $2.00 per book shipping and handling charge. LSUS does not guarantee the condition of the book being returned
Yes-Destroy - Select this designation if you want to allow your titles to be sold on a returnable basis and you would not like to receive a physical copy of the book upon its return. If you select this option, you will be charged only for the current wholesale cost of each book returned. No shipping and handling fees will apply. LSUS will destroy any returned books that it receives if this option is selected
I'm going to give you a few seconds to decide what YOU think that means . . . . . . . . . . okay, times up. If you thought it meant you will get your "returned-from-the-bookstore" book back, guess again. YOU WILL NEVER SEE IT AGAIN! It isn't even an option. When I contacted LSI to ask them "what up" they had this to say. And yes, I have the emails:
"No you don't get the book back, what we do is print you a NEW copy and charge you $2.00 shipping for it."
I said, "where is my returned book?"
"Oh we destroy that."
What? What? What?
"I didn't choose "Yes - destroy" so I want my damn book back like your contract states."
"Well, that wording really needs to be changed."
At this point I just sit in silence thinking WOW! And this is legal. They've no fear whatsoever. Their contract is full of wording that infers one thing but means another. Unbelievable. I did tell them at that point that I felt this was illegal and they blew me off. I told them to tell me where it was they destroyed the books as I wanted to "see" my book before it was destroyed as I didn't believe it ever came back to them as they "inferred." Their response, "oh trust me. We take care of it." I never did get a location I could visit.
Bottom line is, LSI never sees the returned books. They don't want to pay to have it shipped back and neither do they want to pay to destroy it. Since they won't divulge the location were the destruction of the book occurs, I'm going to assume they don't destroy them either. Were do said books go . . . hmmmm . . . there's lots of money to be made selling returned-from-the-bookstore books to wholesalers who dabble in such things.
Now before you go on and think I've got it "in" for LSI, ALL POD distributors operate this way and it's due to that warped "industry" standard return policy. LSI is so bold about it because apparently they think the well-they're-doing-it-too mentality will protect them. So far so good.
If you're a publisher and you make your books returnable according to that standard then you're basically sunk. I've asked my publisher to make ALL my books non-returnable according to that "industry" standard. But basically my books aren't non-returnable at all. If you'd like to work out a return policy that benefits both the publisher and the bookseller he'll be more than happy to work with you. Hopefully my decision will help keep my publisher alive and kicking for a LONG, LONG WHILE.
But to be so bold as to sit there and tell me that I don't ever get my returned book back when the contract clearly read that I will . . . wow, just wow!
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