‘Book Selection Essence Of Competitive Selling’

Press, Volume C, Issue 29623, 20 September 1961, Page 17

‘Book Selection Essence Of Competitive Selling’

(N-Z. Pr«s» Association) WELLINGTON, September 18. The essence of competition in bookselling was the selection of titles that might sell, and buying the right number of copies, Roy George Parsons, of Wellington, a member of the council of the New Zealand Booksellers’ Association, and a former president, told the Trade Practices and Prices (Commission today. It was this ordering that could make or break a bookseller, he said.

The commission is inquiring into an agreement of the Booksellers’ Association on the sale of books. The association covers 350 members handling 90 per cent, of the country's book trade. The acting-Commissioner of Trade Practices (Dr. R. G. Hampton) has said the association issues and enforces price discount schedules, lays down rules on postage charges, and limits competition, involving trade practices contrary to the public interest. Mr R. C. Savage is assisting the commission, which comprises Mr S. T. Barnett, chairman. Mr R. D. Christie and Mr F. F. Simmon. Mr W. G. Smith appears for the booksellers. Mr Parsons said that if the confusion of deciding prices was added to ordering the booksellers could only do a lesser job for the public Last year a bookseller had been forced to close his business because he overordered a class of books he could not sell. Mr Parsons explained the working of the schedule which, he said, with four selected books retailing at 10s and with various discounts ranging from 25 per cent, to 50 per cent., gave an average return of 40 per cent.

He then illustrated with 10 books how five at 10s would bring in a gross profit of £l. Two would be sold either as school texts or as indent to a library, which would involve a discount of 2s a book to them, a gross profit of 4s. 10 Per Cent. Discount The eighth book would go to someone (student or

teacher' eligible for 10 per cent, discount, earning a gross profit of 3s. The ninth book was either locally published or an overseas book bought locally for an extra Is. meaning a gross profit of only 3s. This meant on nine books there was a gross profit of 30s. But the tenth book was the

one "we can’t sell” and which would go to a sale to return half price if lucky or considerably less if not. Over-all, booksellers could hope for a 28 per cent, to 29 per cent, gross profit Some might get less. Libraries buying through booksellers encouraged the latter to be more courageous. For instance, witness said he bought expensive art books because he knew some would be bought by the National Gallery, giving, also, the opportunity to see the books and to decide to what extent they might sell generally. To some extent, the best sellers carried the more specialised books and helped to keep prices down. If the schedule went and a competitor reduced a £1 book to 13s 6d witness would reduce the book to 13s 6d, not more or less, and might get in less stock. Should the situation persist his gross profit would drop and he would have to consider getting smaller premises and specialist books to maintain his gross profit. Mr Parsons said that for a city to be worthy of that title it must have at least one good bookshop. If it lost that shop the city would no longer be worthy. “18# Per Cent. Obvious” Mr Smith: Then it wouldn’t be in the public interest. Witness: It is so 100 per cent, obvious I am sorry I can’t make myself clearer. To the chairman Mr Parsons said the books he bought in were not returnable. He had to exercise his own judgment on what they would be. He, personally, was not impressed by salesmen.

He said his association was not Very determined in dealing with people who breached the schedule except when the "thin edge of the wedge” was reached.

The chairman: What do you do to blunt it? Witness: I’m afraid we talk.

Only one member had been disciplined and expelled and there were other personal reasons for this as well. Anne Marian Middlemiss, a bookseller, of Marton, and a member of the association’s council, said she could stock good books for her customers knowing that prices would not be cut. If an order was made preventing the use of the schedule, the first move would be to cut down the stocking of the good books by half for fear of price-cut-ting in the nearby towns.

Witness said she might also lose her trade she now had with schools if bigger booksellers elsewhere were able to act. Not “Soaking” Public Booksellers were not “soaking the public,” an English publisher, Mr F. D. Sanders, told the commission. Their margins, which were the booksellers’ wages, were not high, Mr Sanders said. He added: "If you attack this or permit them to be attacked obviously you will reduce the number of operators.” Mr Sanders said organised marketing was needed to maintain confidence and 1 stability in the book trade. David Michael Wylie, the Lower Hutt City librarian, said he believed in the present uniform discount system for all libraries in New Zealand.

“I don’t want to have to go from bookshop to bookshop to find which is selling a par. ticular book 6d cheaper than another. It would be a timeconsuming task that would be never ended,” he said. (Dr. Hampton’s report said the association discount schedule limited all members in the maximum rates of discount they gave to bulk buyers on indent terms, such as libraries, and individual buyers, such as students and teachers.)

Mr Wylie said some librarians in the biggest libraries thought the size of their business should entitle them to a large discount. But if the discount schedule were abrogated and librarians forced into a position of calling for tenders the supply of books to libraries would fall not to the hands □f the bookseller but to what was called overseas the “bock-jobber,” who would supply books on contract. The hearing will continue tomorrow.