Mystery Entrepreneur Offers Advice to Independent Bookstore Owners: Future Boils Down to ONE Question!
January 10th, 2007Let’s stop boo-hooing and get on to the business of conjuring up ways to reinvent those independent bookstores that are still managing to survive, while the big boxes and online retailers busy themselves trying to knock each other off with price wars and territorial imperatives.
Actually, as I think about it, this situation is kind of like the implosion of the independent stock photography business in the late 1990’s and early 2000. [Stock photo agencies maintain libraries of photographs for commercial use by advertisers, packagers, publishers, web designers and the like. Originally, stock photos were “rights-protected” and were only leased to users, as opposed the more recent situation where many images are designated “royalty-free” and sold outright.] The industry was different, but the battle royale taking place between Getty Images and Corbus (think Microsoft) over dominance and market share wreaked havoc in that industry in a manner very similar to that being wrought on the independent booksellers now. Price wars turned $3500 rights-protected images into $250 images, while high-quality royalty-free (read: cheap) images ($79!) decimated the rights-protected business model. Small stock photo agencies hunkered down in fox holes, but most ended up waving white flags, joining one warring side or the other and surrendering their inventories—ostensibly as “acquisitions,” but more accurately as starving prisoners of war whose assets were pillaged. The dead stock photography agencies were buried.
As the business model shifted, it was all about “just surviving” and not going under until a new model could emerge. In the stock photo industry survival turned out to be about understanding what the people who bought photos really wanted and needed (mostly cheap, unprotected images), and then being willing and able to switch from bricks and mortar to clicks and mortar and ultimately to clicks alone (sound familiar?) in the nick of time. The stock photo industry shake-up and shakedown left a very different industry in its wake.
But enough of the gloom and doom. As Mark Twain said: Everyone talks about the weather, but no one does anything about it. Let’s do something about it!
Wicked Witch Asks Entrepreneurs for Advice: I fired off emails to some entrepreneurs I know (not in the bookselling business) to get their insight into transitional periods when business models become outmoded and only the innovative will survive. Below is the strongest, most direct response I received. The businessman who fired off his recommendation sold his 25-year-old international company several years ago to a publicly traded company. Luckily, I caught him between tee times. He took the time to hold forth and give me his thoughts. He is also a HarperCollins author, by the way.

