Retail security experts have long said there are three sources why inventory disappears … external theft, internal theft, and errors. Physical inventories not only help a retailer confirm what’s on hand and in what quantities, it also helps get a glimpse on curious and problematic aspects of operations.

Last Sunday we conducted an early physical inventory so we could adopt a mid-year schedule. In Florida, summer has been a bit quieter than our first winter months. The last thing we need to do is celebrate the holiday shopping season and then count everything in the store on December 31st. So, we decided to get it done now, while inventory is lower and before we ramp up for the holidays.

Our retail space is approximately 2,400 square feet and we had eight of us working from 10 am until 6:30 pm to scan the inventory. Our computer systems vendor provided the scanners and instructions. We spent the week before getting organized and receiving everything before Sunday arrived.

With today’s technology, you can easily conduct your own physical inventory with your own staff. There are third party services you can employ, but it’s really not necessary to go outside since you’ll add extra time meeting them to explain your business.

On Monday morning, we began with an inventory that was correct, clear of receiving errors and corrected for “shrink”. During an author event earlier in the year, we knew a stack of books had disappeared, but we had no idea what else might have been stolen. The sobering fact is that even in small and safe communities, theft happens. Theft rings will even travel great distances for an opportunity.

The benefits of doing a physical inventory are many. We learn:

  • To correct item classification errors (books tagged for wrong sections) and ensure each new item brought into inventory has key fields properly coded
  • What processes need to be fine-tuned to ensure every item is costed properly
  • How to do mini audits throughout the year to keep the inventory accurate
  • What kinds of merchandise are most vulnerable for theft
  • What kinds of merchandise are most vulnerable for damage

Most importantly, we have a renewed commitment to shelving merchandise accurately and a new faith in our on-hand quantities … which is something we all appreciate each time we look for an item on the sales floor our system reports we have on hand.

When the cost of  inventory is the greatest cost of a bookstore, this annual count counts and is an essential step in managing the business.

We’re not thinking about ebooks here (ebook sales have plateaued and have been on decline for many months), but information technology as it powers bookstore operations.

Our bookstore management system is on the manager's laptop in our dining room while we set up and learn the many ways it drives store operations.

Our bookstore management system is on the manager’s laptop in our dining room while we set up and learn the many ways it drives store operations.

Our dining room is transformed into our central area for setting up and learning how to effectively use our computerized bookstore management system. We’ve always said it is good to give yourself time. Now, it has become even more real.

Until now, I really never thought of the “To Do List” just for the setting up the system. It’s actually quite lengthy…

  • Set up store information for customer receipts
  • Enter departments, sections, and media (formats) to organize your inventory and determine how you want to analyze sales and inventory turns
  • Go to Edelweiss, where the publisher catalogs are managed online, to establish category mapping so you can import title information and have each book be automatically assigned to its proper category
  • Learn how to import book data from Edelweiss and your wholesalers
  • Develop customer loyalty programs so your system tracks customer purchases and helps you automate perks (no punch cards in today’s bookstore!)
  • Enter vendor account information (after you’ve opened your accounts!)
  • Lean to create purchase orders
  • Test electronic ordering (which is the best practices of our industry)
  • Learn to receive inventory so on-hand quantities are updated when you press the magic button
  • Understand how to research books using book industry databases (not amazon.com), find books customers want to buy from you, and put those on an order
  • Develop discount categories, add your staff discount and apply them only to the appropriate product departments
  • Establish security levels for various staff positions
  • Learn how to ring up a sale
  • Understand how to run a Z tape to close out sales for the day, then reconcile that for your bank deposit
  • Set up proper back-up procedures

And I haven’t even gotten to the accounting interface! The meeting with our CPA is Monday.

A computerized bookstore management system is essential to connecting to the book industry’s massive title databases and inventory detail, and this is where our systems go so far beyond Square or the generic POS systems. We are data-driven because each week we have thousands of new books released and our inventory is always fluid.

After a busy month of learning and testing our system, it’s clear that this effort requires planning, a keen attention to detail, and time before you go “live”.

While the headline is positive, dig into the details and you’ll see the nuances. While many of us are reading (even reading more as we age), there are a significant number of people who are not reading books at all.

The most recent Gallup poll released January 6, 2017 … “Rumors of the Demise of Books Greatly Exaggerated” … indicates that older adults (aged 65 and older) are reading more than they did in 2002 with 85% now reading one or more books a year (up from 68%).

91% of young adults report reading at least one book in the past year.

Those in the middle years (aged 30 to 64) who reported they have not read a single book in 2016 is a whopping obama_read_poster_01111739%.

Why this matters is that this is the age group raising children, seeing them from birth through the college years.

If they don’t see us reading, they won’t see the value of reading.

From presidents to mayors, school principles to parents and grandparents, young people watch us. We are their role models.

The future of reading, depends on making sure our actions match our words.

With the U.S. presidential election now decided, many of us have witnessed the protests across the country, learned that schools have called in counselors to help students cope with the results, and ourselves felt heightened emotions of sadness and concern for the future of our country.

As booksellers, we have always carried books that help us understand our world and heal our inner lives. We stock books to help parents help their children through grief and fear, books that foster self-confidence and prompt critical thinking.

Post-election bookstore message board.

Post-election bookstore message board.

Today, those books are needed more than ever. Hope for healing our lives, communities, country, and world will help us crawl out of bed and feel there is something we can do to contribute to a greater good.

A few weeks ago, I went to a TEDx event and ended the day feeling hope and optimism. All of these smart, loving people had done remarkable things in their seemingly ordinary lives and stood on stage to tell their stories. And, it was astounding that these remarkable human beings are my neighbors. It was a reminder that good people are doing good work every day.

TED talks and events remind us we are still learning … and we can keep learning from one another. At our TEDx event in Jacksonville, Florida, regular breaks were structured so we would interact with others and talk about the presentations.

Through dialogue, we connect and learn from one another. Everyone emerges enlightened. We learn to listen with openness, respond with civility and respect, and acknowledge one another in a human way when we are face to face. And, being together reminds us we are not alone on this journey.

The events we host in bookstores can respond to this need, providing more time and space for interaction, questions, and discussion.

We can be inspired to rethink our events to expand opportunities for two-way conversation. Book discussion groups, a featured local speaker with theme discussions, conversations after author talks, panel discussions … any program that opens the floor for interaction and exchange will allow us not only to feel engaged and connected, but will expand our world with other views and ideas.

We can bring people together to foster dialogue and connection with a higher purpose.

Our work has become even more clear during this presidential campaign. We need to step up our advocacy for the values and qualities that make us decent human beings who contribute to the greater good of the world.

Yesterday, as I was preparing dinner, I listened and watched Michelle Obama’s comments during a campaign presentation. She was right, this was not the time for a typical speech. These are not normal times.

Our work grows more important.

Our work grows more important.

Over the summer, I’ve been reading the publications from the Southern Poverty Law Center, an organization that is “dedicated to fighting hate and bigotry and seeking justice for the most vulnerable of our society.” For years they’ve produced a publication entitled Teaching Tolerance. The letters from teachers, Q&A responses about challenging situations emanating from this campaign season, and the heightened concerns teachers have for children has been chilling. Stories of playground behavior and language illustrate that children see, hear, and are affected.

On TV and radio, children have heard the spewing of hateful, disrespectful language and incitement of violence. And, we as adults have needed to discuss this because it is simply unbelievably surprising and sad.

We are better than this.

The effort needed to counter-balance these destructive words seems to grow in importance with each new day of the campaign.

Booksellers have a perfect audience with every story time and an opportunity with each little customer. I grew up with Captain Kangaroo and remember learning to say “please” and “thank you” and saw how a captain in a big mustache would be kind and civil with a little bunny rabbit. My storybooks taught me those same lessons.

The work to right this ship is immediate and probably ongoing. The media will need to continue to report the news, but we can work to be models and safe havens of civility and respect.

It’s been a busy week in a very good way. We’ve gotten inquiries from people in sizable cities that have only had second tier chain bookstores after the departure of Borders and Barnes & Noble. And, we heard this new store update from Jay Jackson, co-owner of Absolutely Fiction Books! with his wife Becky:

“People were waiting for us to open the doors, several people told me they almost cried when the first building deal fell through, they are emotionally invested in the Bookstore and make up our core fans. For them it’s not just a place to buy books it is a dream come true, Their dream.”

A Texas community celebrates the opening of Absolutely Fiction Books!

A Texas community celebrates the opening of Absolutely Fiction Books!

Perhaps it is true that we only recognize the value of what we had when it is lost. The residents of Lufkin, Texas once upon a time had a Waldenbooks. Becky worked there and was devastated when it closed. For years, she mourned the loss of the bookstore. Others did too.

When we can buy anything online, why do we miss any retail store?

Bookstores are special places. Yes, it’s the books and the staff and the smell of coffee and the comfy chairs. And, it’s so much more than that.

In the U.S., we have experienced a mind-bending political campaign that has brought about a series of shockingly new lows. Insults, bullying, the deliberate spread of misinformation, the lack of apologies and basic courtesy. The dark side of humanity has shown itself without shame in a country we thought stood for high ideals and personal responsibility, especially from those who wish to become our national leaders.

For months now, this dark side is the center of every media story. As a result, the campaign makes its way into casual conversations. People are upset for a lot of reasons.

That’s why when Becky Jackson puts fresh flowers out in the bookstore on Fridays and mentions it on social media, customers come in just for a look, a dose of something beautiful and refreshing. Then, there are books on the tables and shelves that are symbols of civility.

Bookstores ground us. They connect those who value facts, seek knowledge and common ground, want to engage in meaningful discussion and make the world a better place. It’s a place where people honor one another, even when they disagree, with courtesy and respect.

It’s no surprise customers of Absolutely Fiction Books! became emotional when they learned an indie bookstores would be opening in their community. Yes, it’s retail, yet a symbol of civility. May the flurry of new bookstore openings continue. We need bookstores for ourselves, our communities, our country, and our world.

Last week during BookExpo America, which was held in Chicago this year, we took a retail field trip to visit five Paz workshop grads who have recently opened or purchased existing bookstores. What a delightful way to spend the afternoon.

RoscoeBooks is a purely delightful neighborhood bookstore you want to visit because it feels so good to be there.

RoscoeBooks is a purely delightful neighborhood bookstore you want to visit because it feels so good to be there.

RoscoeBooks has been in business for two years and is surpassing financial projections. Owner Erika Van Dam sensed her neighborhood wanted a real indie bookstore, and, she was right. As soon as you enter the space, you know this store is staffed with people who love books because the very first bookcase is filled with staff recommendations. Travel throughout the store and you find staff recommendations everywhere. No matter your age, the children’s department is such a draw with its colorful mural. At 2142 W. Roscoe Street, RoscoeBooks is the center of the neighborhood with a friendly space loaded with delightful reads.

These chairs at City Lit Books invite you to sit and relax.

These chairs at City Lit Books invite you to sit and relax.

City Lit Books is a few short blocks from the Logan Square train stop and in the center of a most desirable Chicago neighborhood. Residents can walk to a poetry open mic night, author event, or simply to sit in the comfy chairs by the fireplace and pick out some new books to read. We love to see staff recommendations, meet booksellers who are authors themselves, and especially love seeing displays of customer recommendations. Teresa Kirschbraun has created a community hub for readers and writers, poets and dreamers of all ages.

Esther preps for a special event at Read It & Eat.

Esther preps for a special event at Read It & Eat.

We couldn’t wait to see Esther Dairiam’s Read It & Eat, a culinary bookstore with a full kitchen for hosting amazing food-centric events. Esther did a fabulous job choosing colors and finishes to dress up the historic space at 2142 N. Halsted Street. The air was filled with a delicious aroma as Esther was prepping for the next day’s special event. We browsed the selection of books … everything you’d ever want to know about food for home cooks and restaurant professionals.

Portraits of famous authors were drawn by an artist on staff at the iconic Women & Children First Bookstore.

Portraits of famous authors were drawn by an artist on staff at the iconic Women & Children First Bookstore.

The iconic bookstore Women & Children First was purchased by employees Sarah Hollenbeck and Lynn Mooney last year and they have been busy making their own mark. The whole store has gotten a fresh coat of paint, the children’s department has come to life with a new carpet and colors, and we loved the series of hand-drawn portraits of visiting authors that were created by a talented artist on staff. We applaud Sarah and Lynn for stepping forward to keep this store alive and well into the future and are thrilled that this next chapter in their lives includes owning a beloved business. You’ll find them at 5233 N. Clark Street … remember to check the events schedule if you’ll be in town since they often host the major authors on tour.

Hardcover bindings cover a focal point wall at Volumes BookCafe.

Hardcover bindings cover a focal point wall at Volumes BookCafe.

Our last stop was Volumes BookCafe at 1474 N. Milwaukee Avenue. Sisters Kimberly and Rebecca George have created an invigorating bookstore that invites you to order a glass of wine as you shop and leave with a great cup of coffee once you’ve found your next great read. We loved the delightful touches in the store … book art created with used book pages and covers. In the kids area, a small family could snuggle up in the seating area and read together.

Travel Chicago and it’s easy to see there is no shortage of creativity when it comes to developing an indie bookstore. Bravo, new bookstore owners! Your neighborhoods and communities have very special places to gather because of your bookstores!

yelpIn a recent article reprinted in the UTNE Reader from Gastronomica, Dylan Gottlieb presented the demographics of the Yelp users: they are urban dwellers, disproportionately young, white, childless, wealthy, and highly educated. Most importantly, he reports that Yelp’s data suggests 72 percent have either college or graduate degrees … and they love authentic experiences.

Yelpers have a treasure trove of readers and potential indie bookstore customers.

Gottlieb wrote about Yelp posts mostly about dining experiences, but the demographics indicate that Yelp may be a perfect platform for marketing outreach for indie booksellers.

Not only did these Yelpers grow up reading Harry Potter books, they went on to devour young adult novels, and now, according to recent studies, are reading more than their parents and grandparents. Who would every imagine?

In our work helping bookstores with succession planning, we check all of their social media sites and recognize that there are few bookstores with any more than a few customer comments on Yelp.

In today’s world where peer opinions matter more than ever before, Yelp appears to be an underutilized platform to reach out to younger readers. Prompting a few young customers to post about books and your indie bookstore.

Yesterday’s news was filled with stories about shopping during the Thanksgiving holiday weekend. The Nightly Business Report examined the results in context of industry trends due to technology and customer expectations.

NBR used the term “blurring” to describe why Black Friday has become more cyber and Cyber Monday has become more physical. First, many consumers are beginning their holiday shopping earlier, this year by November 10, due to promotions and discounting. So Black Friday is just more of the same promotions, less compelling. Cyber Monday has become less important because people no longer need to wait to get to work for access to high-speed internet. They’re buying online any time.

Going into a bookstore, what a great way to get into the holiday spirit.

Going into a bookstore, what a great way to get into the holiday spirit.

With technology supporting the ease of online shopping, what is the future of indie retail? It’s all about the experience.

These elements that create a memorable experience become not just more important, but essential:

Store design that makes you feel good, a space that is uplifting

Displays that are irresistible and offer delightful discovery

Selection that is manageable, interesting, and exudes quality

Fully present and genuinely helpful assistance

And when it comes to gifts, the complementary gift wrapping can be the simple, obvious amenity that seals the deal … the extra something that is beautiful, makes things easy, and is offered in the spirit of joy and shared delight.

Then, add Cider Monday (thanks to bookseller Willard Williams of The Toadstool Bookshops) and the Indies First promotion on Small Business Saturday (thanks to the American Booksellers Association) and the experience just got more rich and personal.

When corporate retailers will continue to blur the shopping experience by deluging the marketplace with special offers, let’s focus on the importance of creating a special experience. The authenticity of the personal and in-peerson has tangible value in a world immersed in faster, cheaper “stuff”.

Publishers Weekly does such a good job in reporting on research that affects the book industry and their recent snapshot on today’s educational e-book market prompted me to think about how the results will affect the sale of print books in bookstores as students become familiar with using e-books.

Children may regard ebooks like parents regard computer screens: work.

Children may regard ebooks like parents regard computer screens: work.

Quoting from the 2014 School Library Journal “Survey of E-book Usage in Schools,” PW notes that 66% of schools across the country currently offer e-books, a 10% increase over the previous year. The portion of children who have read at least one e-book has increased steadily over the last five years.

There are issues galore that the educational community are grappling with: the digital divide; the cost of ongoing investments in technology, tech support, and staff training; selecting and sourcing e-books; plus providing the format that is best for the student and the subject being taught.

If we look to the future, it appears that the number of ways we can read will expand. Being able to read has always been important to success in life, now technical skills will be needed to access information.

It’s interesting that booksellers whose spouses work for Apple and Facebook note that families with roots in the field want their children to read print. They want their children to be well-rounded and able to focus on reading without distraction. Many limit “screen time” and look for ways to maintain a healthy attention span when there are many temptations for digital escape.

What will the students of today prefer as they age? My call is that those who have a balanced diet of reading electronically and reading in print will be proficient in researching and skimming information as needed for tasks. When it comes to reading for fun, turning the pages of a print book will be a break from technology, offering a sensory experience during those cherished moments for quiet adventure.