Why Every Store Needs to Audit Freight Costs on Every Invoice From Every Supplier

Last week I received another in an endless parade of shipments from a supplier whose frequency of backorder releases I had brought under control until they changed computer systems.     After taking several years to tame the beast, it was frustrating to have to start all over again, especially when the transgressions this time around are far worse than at the first.

The recent shipment of three backordered items had freight costs of 19.1% on items with a working margin of 40%.  That means that if I did not dispute this invoice, I would be losing 49% of my gross profit margin if I am able to sell the three items in question.   This is a supplier from whom I order every 2-3 working days, so the shipment could easily have been added to the next order created.

But keeping after your suppliers to stop the backorder nonsense benefits them as well.    When you consider the human resource costs of picking, checking, packing and pickup; and then add invoicing/accounts receivable costs plus the costs of the packing materials themselves; it’s easy to see that the supplier pays as much again for the shipment as they are paying UPS or CanPar or Purolator.  (Stores that commit their wholesale shipments to Canada Post are, in my opinion, taking a huge chance on when and how they will arrive.)

Ministry is ministry, but business is business.   Don’t be afraid to speak up.   The effective gross profit margin you are able to preserve may contribute to the longevity of your store.    Ignoring it may contribute to its downfall, and in some small measure, possibly the downfall of the supplier concerned.

Get to Know Paul Baloche

Click on the image below to see the eight-minute video and learn a little about Paul and his songwriting process:

Jack Hayford: A Great Author Working a Great Text

For several years we were able to pick up Jack Hayford’s Sunday night broadcast from Church On The Way in Van Nuys, California.   Hayford is a very level-headed, balanced Charismatic pastor who is often seen as a ‘reconciler’ between the Charismatic community and those outside it.   He’s also a gifted worship leader — and writer of  the chorus “Majesty” — and author of many books.

The book of Nehemiah is a great text to be working with.   I enjoyed Andy Stanley on this recently, but this classic title by Hayford — currently in re-issue by Charisma House — looks at the text as painting a picture for us of the Holy Spirit.

On this short video, Hayford introduces the book in his trademark vest; though as often it’s a sweater!

Next Generation of NOOMA May Bypass Retail

In an interview with the Burnside Writers Collective, Rob Bell explores the possibilities for another generation of video clips.   He says that it was plain funny to produce something and then have to wait six months for it to appear on retail shelves.  But isn’t that what authors and artists have been doing for generations?

As a user of today’s technology, I get that.   But it appears the future of his short film production won’t include retailers like you and I:

BWC: It’s been a while since our last interview with you, and I’m inclined to say that what’s upcoming for you is a reinvention— “Rob Bell 2.0”. What new direction are you heading in? And what’s this I hear about Nooma being over?

Rob Bell: It’s sort of an endless evolution. I have a new series coming out next year—I can tell you that much. When you work within a particular format, each has its strengths but it also has its limitations. With Nooma, we made twenty-four. And then, you start musing on, “What if I do this? What if I try this? I’m bumping up against this element of it, so what happens if I remove that element?”

Obviously, being able to view [the videos] free online is a factor. When we started Nooma in 2001, we would make something that, six months later, came out in a store. And now, that just seems funny. Now, you make it, and then next week everybody’s got it.

I’m endlessly interested in content—how to make something shorter, denser, get to it faster. Film can sometimes get in the way of what you’re doing. With filmmaking, you can have these nice panoramic shots, and I love it: it’s great film, it’s great cinema. But there’s this thing you’re trying to say, and you’re always trying to get at it—the essence. Raw essence. Faster, better, stronger.

With Nooma, people said, “No one will watch these. No one will buy these.” You kind of have to see one, and then say, “Oh! I get it!” Hopefully, this [upcoming project] has the same sort of effect. I’m endlessly restless.

BWC: So I take it this new series will adapt to or embrace the file sharing age?

Bell: Yeah, one of the things we’re exploring is making a film and releasing it in such a way so that people could instantly send the link to their friends… how to make it as easy as possible so that everyone could watch the highest resolution quality, etc.

Read the whole interview here.

Aggressive Buying Backfires When Publishers Go Green

If you were to visit either of my stores, which reflect a rather aggressive buying style, you would probably call the local mental health facility to have me committed.

We’ve always bought enough to meet demand and not run out of stock, but sometimes we have a lot of stock left over, which has never really bothered me because (a) these are good titles by proven authors,  (b) we’re not in any kind of financial difficulty because of buying errors, and (c) we did get better discounts for buying non-returnable.

However, as we ‘ve been doing our fall pre-inventory stock purge, I’ve realized that the environmental initiative of using non-bleached paper is coming back to haunt us.    Our paperback books — including titles not anywhere near a store window — are yellowing fast.   On some, yellow isn’t the right word; orange would describe it better.   That is severely limiting their shelf life at full price.

And if they’re doing this on my shelves, what are they doing on the customers?   Or the authors’ personal copies?  Do they return to an old favorite only to discover the book looks like it was purchased in 1899 instead of 1998?

The case for just-in-time inventory just got a lot stronger.   As a result, I’ve had to cut back purchasing from those.  Some key publishers, unfortunately, are to blame, including one of my personal favorites, which I won’t mention by name, but it starts with “Z” and rhymes with honkerblan.

To those publishers who took the heat from the “green” movement and stuck it out with quality paper:  It’s possible you may have made the wiser decision in the long-term, and you showed a great deal of respect for your authors’ product.

Is there a balance?   Is there a solution?    Can I put Clorox on the page edges now before it’s too late?

STL UK Operations at Risk: Computer System Blamed

While Christian book industry watchers are concerned about larger issues, the story in yesterday’s News & Star in Carlisle, England was all about the potential of job losses:

Carlisle suffered a fresh jobs blow today with news that 150 posts are at risk at the Christian book operation STL Distribution.

They are the biggest group among 490 jobs under threat across the country as Bible charity IBS-STL UK looks to sell its British operations – STL Distribution, book and music publisher Authentic Media; and Wesley Owen Books and Music, a retailer with 40 shops.

In Carlisle, jobs in warehousing, accounts and finance, IT, customer service and a call centre are at risk…

However it’s the failed implementation of a computer system that’s getting the blame:

“The principal reason for this is the failed implementation of a new computer system. We’ve been trying to recover all year since then. It was a massive investment.

“Obviously we are focused on finding anyone who can give added investment and can continue the mission of getting Bibles and Christian books around the country and safeguard the jobs here in Carlisle.”

IBS-STL UK has suffered a series of financial set-backs. The effects of the failed implementation of a new computer system were exacerbated by the economic downturn.

Meanwhile, Terry Draughon, VP for Christian Market Sales in North America was busy doing damage control yesterday trying to quelch rumors — he alleges that a letter is circulating to this effect –  that the U.S. operations were in jeopardy.   He points out in an e-mail:

The financial health of the US organization is stronger, partly because of the 30+ year success of the NIV Bible which is owned by Biblica US, our parent company.

The financial health of the two organizations (US and UK) are completely separate.   The US organization is legally different from the UK, borrows from different banks, and abides by different laws that govern charities in each country.

The market for Christian products in the UK is much smaller than in the US, both because of less people in the UK and a smaller % of church attendance there.

The US organization has not attempted to install the SAP software, and our systems are not affected by the attempted installation in the UK.

We will be upgrading our service to the UK customers to help them through this difficult time.

We have recently moved into a wonderful new warehouse and office facility which is allowing us to serve all of our customers to an even better level than in the past.

To read the British story, click here.

Dance Me Daddy: Children’s Picture Book Hit

Our continuing tour of Christian book promotional videos* continues today with the Children’s Book, Dance Me Daddy by Cindy Morgan (Zondervan).     So what’s the story on this one?   The original video was posted by Zondervan, but this particular link is to a version posted to YouTube by CBD.   Hmmmmm.

*We won’t do this as often.  Apologies to those of you on dial up; I know how long it can take a page to load with embedded videos, and in fact, I never use them on my personal blog.

Social Concern Among Christian Musicians Part of a Long Tradition

As an article this week in Christianity Today Online documents, social activism in the Christian music community has a long history:

In 1883, gospel singer Ira Sankey joined evangelist Dwight L. Moody in Edinburgh to raise £10,000 (equivalent to $373,000 today) to build a permanent home for Carrubbers Close Mission—which still offers the homeless a free breakfast on Sundays. And George Beverly Shea, known for providing the soundtrack to Billy Graham’s crusades, often sang to move crowds to support the relief work of Samaritan’s Purse. Cause-driven music and celebrity endorsement carry great credibility.

But something more than endorsement is happening in contemporary Christian music. Artists are directly immersing themselves and their audiences in missions to hurting people, whether they are six blocks or 6,000 miles away. They are stepping to the forefront to address poverty, human trafficking, HIV/AIDS, malaria, and other fatal diseases, taking personal responsibility to invest in grassroots work

To read the complete article, click here.

Canadian Gift Source Wanted

This is for my Canadian bookstore readers.   I’m looking for a Canadian giftware distributor who has some reasonably priced Advent wreaths and tabletop Nativity scenes instock for immediate shipping.  Time does not permit importing.

Help!

Multiple Locations

Half Price Books is a regional chain of five stores in Whitby-Oshawa, at the east end of the Greater Toronto Area.    As the name suggests, most of the books are remainders sold at half price, or less.

Yesterday I visited the largest store, on Ritson Road in Oshawa.   The sales clerk told me that while there are five permanent locations, with Christmas approaching, the owner may have as many as twenty “book fairs” running in temporary locations throughout Ontario.

Frankly, I wish some temporary locations were available for our stores in some different urban centres.

As someone who has operated three Christian bookstores, and currently owns two, I recognize that there are certain efficiencies to be gained with multiple outlets.   We are continuing to get requests to fill some voids in communities left without a Christian bookstore after last September’s bankruptcy of Mitchell Family Books.

On the other hand, there are a lot of headaches.   The day before, we visited Mr. C.’s Music store in Brockville.   The owner told me he gets requests to expand to other communities but doesn’t want to double his headaches.   He also pointed out that in many respects, it is his presence, product knowledge and personality that makes his existing store what it is.   Can he guarantee that staff in other locations would maintain the same atmosphere and level of customer service?

Those are good questions.   In the store we operated in Lindsay, we had a very competent and personable senior staff member who simply didn’t shop up to open the store on a couple of occasions.   Dealing with multiple landlords is also frustrating, especially in Ontario where competition for space and expensive rates per-square-foot work against entrepreneurs who want to do retail startups.

Right now, the only things that holds me back from a couple of new communities are the expense and availability of store fixtures, and the need for someone to be the “alpha person” on the ground level of each city.

I have the stock; in fact I could do a stock split without customers in either of my existing stores noticing.   I already have the payroll system in place, and the vendor relationships.   It just means an extra phone bill, an extra POS processing cost, and an extra set of heat, electrical and insurance bills.

But then again, if someone wanted to stick their neck out, I also have a draft franchise plan if someone wanted to ride on our expertise and buying skills.

First, though; I believe God has to open the door.  His presence in confirming every step of the way when we opened in Cobourg and Lindsay, and purchased an existing store in Brockville was unmistakable, as it was when we moved our Cobourg location three years ago.

Knowing that God is leading, when you’re working in communities of 17,000 and 22,000 is especially critical, because unless the Lord builds the house (and by extension, the bookstore) the workers labour in vain.

And Will The Cost of Theatrical Trailers Raise the Price of Christian Fiction?

A whole new industry has grown up around YouTube promotional videos for books, but how effective is all this?   I’m not sure if this one is improved by not having the cheesy voice-over announcer asking, “Will he discover God’s perfect solution to his problems in time to win Hanna’s Heart?”   Actually, I think the sales pitch is somewhat lost without the the deep baritone reader.

Mark Batterson on Wild Goose Chase

I’ve been a frequent reader of Mark’s Batterson’s blog, Evotional since long before the release of his first book, In A Pit With A Lion on a Snowy Day. (Waterbrook)   He recently explained how the idea of that book first came to him.

His second book, Wild Goose Chase is a reference to the Celtic way of describing the Holy Spirit.   Watch for a third book, Primal, to release in January.

Cook Canada Appoints New Managing Director

David C. Cook is reporting the filling of a senior staff position this morning:

Colorado Springs, CO—After an extensive search, David C.  Cook is pleased to announce that Greg Tombs has accepted the position of Managing Director for David C. Cook Distribution Canada. Tombs will serve as the executive leader for Cook’s Canadian operations and as a member of the David C Cook Executive Leadership Team reporting directly to Cris Doornbos as CEO by the end of November 2009.

As before, if you wish a forwarded copy of the complete press release, leave a comment with the words, “Forward release;” we will then delete your comment.   Tombs replaces Rob Irvine who left earlier this year.   David C. Cook, based in Paris, Ontario,  is one of the two primary distributors of Christian books in Canada.

Shades of Blue: Kingsbury Stand Alone Title

A different kind of promo video.   What do you think?   Are you making use of these on your store website or store blog?

Creative Alpha Course Promo

…but people on this side of the Atlantic may be a little less familiar with Bear Grylls, UK survivalist, adventurer, author and TV host.  If you click on the video itself to watch it at source, you’ll also see a suggested link to a newer YouTube clip from October 19, 2009, where Nicky Gumbel asks Grylls what question he would ask God given the opportunity.

Communities Continue to Lose Retail Channel

I don’t normally note the closing of individual stores here, but each one represents a loss to a local community.   Sometimes I read one of these and it just plain hurts.  This one in Colorado may be hundreds or even thousands of miles from where you live, but it represents the continued shrinking of our network of independent Christian product sellers.  Note the reasons.

The Longmont Times-Call, Colorado, October 31