This past Monday, we submitted our large opening order to our wholesaler and a second order to a remainder dealer (for bargain books). The volume count just topped 11,000 and there will be a last minute order to catch the newest titles on the bestseller lists as January is also a big month for new releases.

A bookstore of just over 2,000 selling square feet can fit this many books. And, there is a lot of data about what books are available, what’s on the bestseller lists, which books just won awards, and what is currently selling in U.S. independent bookstores. That’s the good news.

The bad news is there is a lot of data about all kinds of books. While doing our planogram made it clear how many books we’d need to fill the shelves, selecting the titles was time consuming.

Our shelf-talker introduces Sweet Pea, the little New England sheep that began as the star of a self-published book.

Our shelf-talker introduces Sweet Pea, the little New England lamb that began as the star of a self-published book.

How time consuming? Susan Savory, our Paz & Associates colleague who develops opening inventories for our clients, has always estimated that it takes her about 100 hours, but this also depends on the size of the bookstore. That’s a lot of time. With Mark and I joining in on the selection, we went way over 100 hours.

Now, I know first-hand why it takes so long. It’s tedious, it’s detailed, and, it’s important. Inventory is the single biggest cost of owning any retail store.

When you’re selecting titles, it goes beyond the numbers. It’s about the people who live in your community, those you especially want to be enchanted when they shop in your store, and it’s about the character of the store and the special aspects of your region.

Imagine that each title on the spreadsheet requires a decision. You want each to resonate in your market because you need them all to sell … and hopefully within three to four months so you can reach your inventory turns target.

Tomorrow we’ll do our second pop-up shop, the last one before we get busy with the process of setting up the store. Last time, some of the new National Book Award winners we stocked didn’t sell out. How could this be, we wondered. The truth is that people need help making decisions. They need more information.

So, we got busy writing shelf-talkers and grabbing reviews. While we as booksellers make decisions on what to buy and why … customers need information too. Now, we have personal notes about why the books are interesting, heart-warming and worthy.

Even though buying the opening order became tedious and tiring, we ended each day talking about some of the remarkable books and authors that were part of our day. Their stories, research, artwork, and writing talent enrich our days.

We can’t wait to share all of this with our community.

With Small Business Saturday the perfect opportunity to remind people of your start-up and the importance of small business to the local economy, why not do a pop-up shop?

Start-ups do pop-ups for a variety of reasons, mostly for visibility and the opportunity to learn from your customers while you’re still making critical decisions about your selection, programming, etc.

A pop-up shop allows you to learn from customers and begin learning store operations.

A pop-up shop allows you to learn from customers and begin learning store operations.

We learned the importance of being mindful the “intense” opportunity. In a limited amount of time you will arrange tables, merchandise your selection, set-up cash register operations, handsell books, ring up sales and gather customer information.

Then, when it’s all done, you’ll box up what’s left, haul everything that’s left back home, close out your register, look at what sold, and let all those customer conversations sink in.

It’s trial by fire.

At our pop-up on Saturday, the good news was people showed up! Our location is a destination, people aren’t just going to stumble upon it. Marketing was key so we sent out an email promotion, posted it on social media, and put signs up on the road beside our tiny Amelia Park Town Center.

Friends and neighbors came; they wanted to buy. Although the internet connection worked via our cell phone to the laptop so we were able to accept credit cards, the receipt printer decided to take the day off.

So, here’s what we learned:

  • Your troubleshooting and stress management skills you’ve built throughout your career will help you push through anything that comes your way. (We electronically ordered from both wholesalers with one failed transmission that led to duplicate shipments. Two books arrived damaged.)
  • Present a bit of everything you think you’ll carry in your store, then see what sells. The wholesalers offer non-book merchandise, so try out some things you think might sell.
  • Talk with people about what they like to read and tell them you’ll carry books those kinds of books.
  • Books change lives and people want to tell you their stories. Listening is such an easy way to build a relationship.
  • Say a few words about why the book the customer has picked up is noteworthy or special; show them beautiful books; tell them about what you heard the author say in a radio interview. People buy stories and beautiful things.
  • People will be incredibly patient and kind. These are your neighbors and they want you to succeed.
  • Some people will want something you don’t happen to have that day. Write it down and go find it and order it for them. They will be wowed by your interest and  initiative. When you make it easy and go the extra mile for someone, you are gaining a fan.

Pop-up Bev Pat JeffFor me, the technical aspects of running a store on an off-site laptop, getting all of the electronic parts to perform and learning all of the operational aspects from creating a purchase order to receiving books, selling and running the close-out report provided a training ground.

Even with a pop-up, you have the opportunity to learn all of the things you’ll soon be doing on a daily basis.

From marketing to operations, it’s all good learning.

Wendy Werris, a writer for Publishers Weekly magazine, wrote a “Soapbox” editorial that described her short bookselling experience working at Barnes & Noble. I closed the issue after reading her piece and let out a big sigh.

As technology has changed the way we work and live, we’ve seen the number of new books published exponentially increase. At one point a wholesaler mentioned we have more than 3 million books in print. Now, no one ventures to even utter a number, but I did hear that we’re at least at a clip of 2,000 new books per week. Yes, per week.

Indie booksellers are not only affected because the store size is finite, but there’s only so much time in the day to review publisher catalogs and industry news. How to keep up is an ongoing challenge.

Every book on this table display at Chicago's RoscoeBooks comes with a recommendation.

Every book on this table display at Chicago’s RoscoeBooks comes with a recommendation.

Yet investing time and energy in buying just to return is wasteful. It’s wasteful for the bookstore, for the publisher, for wholesalers, and for the book industry.

We want the best books for our community in the bookstore. Recommendations from sales reps is tremendously valuable; Above the Treeline helps; and spotlights from the American Booksellers Association (IndieNext) and regional booksellers associations help us focus our investment of time and inventory dollars.

In Wendy’s soapbox piece, you get an image of booksellers unpacking books from boxes, then gathering them up and boxing them back up for return. Every day, like the movie Groundhog Day, the task is the same.

Where’s the bookSELLING?

Our true north is with investing in the books we want to introduce to our community. Our work is to ensure when a book leaves the store, it’s not leaving through the back door on its way back to the publisher, but through the front door, in the hands of a customer who will enjoy a great read they have discovered at our bookstore. Selling means a focus is on aligning marketing, merchandising, and staff handselling.

When there are so many books and so little space and funds, we need to make sure our true north is reflected in the books that grace our shelves. Unlike corporate chains, we’re not in this business to buy and return books. When we care about great writing, a good story, and exceptional research, we will work to make sure those works are discovered. Sales, profits, and sustainability follow.

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”.

I guess it all started with my mom, a single mother raising two girls without a lot of resources, she learned to fix things. The local hardware stores, like local bookshops, were pressed to show their competitive advantages when the big box stores multiplied in towns everywhere.

Hackney Hardware in Dexter, Michigan - what a delightful experience!

Hackney Hardware in Dexter, Michigan – what a delightful experience!

Today, I love going to not just any hardware store, I love ACE Hardware stores. While in the Ann Arbor area recently, I visited Hackney ACE Hardware in Dexter Michigan. The stores are independently owned and operated and while they vary in their selection, all the ACE Hardware stores I’ve visited seem to show friendliness you can only find in a neighborhood business.

While I was walking along Main Street in Dexter, I came across a storefront with kitchen goods and toys visible from the sidewalk. Hold everything! I went in and headed right for the beautiful tabletop display. Where am I?

When I peaked around the corner, I could see I’d entered the hardware from a second entrance. I stumbled into a feature display of absorbent dish cloths. Some were imported and others were hand-crocheted with all cotton yarn. There were natural cleaning solutions for every household chore on an endocarp display. I’d never seen the brand before.

Near the cash wrap was a wall display of favorite soda pop and on the cash wrap counter was a display of Chuckles, those sugared jelly candies. How fabulous is that?!

The store was clean. The staff was friendly. The merchandise ranged from staples to wonderful discoveries. I found a few things to buy.

After my friends found me in Hackney Hardware and we were ready to press on, we walked and discovered a barber shop at the corner. The barber was inside cutting hair and talking with a few other men.

What a delightful experience on Main Street. When I’m in Dexter, I’m going back to Hackney’s Hardware.

We celebrate each new opening of an independent bookstore. Shelf-Awareness, ABA’s Bookselling This Week, and Publishers Weekly all do a good job of announcing new store openings. It’s interesting to learn how a dream has become reality, but sometimes a single photo can tell us that we’ll soon see an announcement of the store closing.

One of the common pitfalls in opening a new bookstore is understanding the financial dynamics of a bookstore to get the business plan assumptions right. The margins in the book business are tight, and metrics, like inventory turns are essential to clarifying what sales need to be in order for the business to grow beyond break-even.

While no one wants to lose money, it’s surprising when a new bookseller will say, “I can’t afford the time” to come to a workshop to learn the business that will require thousands and thousands of dollars to launch.

Our response is, “can you afford NOT to?”

Lean inventory levels will need sluggish sales and struggle to keep the bookstore afloat.

Lean inventory levels will need sluggish sales and struggle to keep the bookstore afloat.

The photo we’re featuring has been modified to post in this blog, but it’s one of the photos that indicate the bookseller has opened on “a wing and a prayer”, driven by a dream, but uninformed and positioned for early failure.

All retail businesses are based on the buying and selling of goods. Inventory turns is a key metric that measures the productivity of our inventory. You take your inventory at its retail value and multiply it three to five times to forecast your annual sales.

The key question then becomes, “Is this enough?”

We recommend that a full and interesting selection of books and non-book items should run about $125 per square foot at its retail value, $75 per square foot at cost. The inventory in this photo appears to be at about $15 per square foot at cost.

Launching a dream for a bookstore is a wonderful contribution to community, but only if the story of this new business continues. It’s painful for everyone when a dream crashes. Those of us in the book industry want to see more success stories. The margins are tighter in the book industry than other forms of retail.  It pays to learn the complexities of the book industry and the basics of retail management before you dive right in.

Some bookstores are well worth the drive. We were having lunch with friends who were telling us about their summer travel plans when I discovered we have a habit … we can’t help but associate a city with one (or more) indie bookstores. Going to Chicago? Oh, you’ve got to visit The Book Stall at Chestnut Court and don’t forget RoscoeBooks and the new Read It & Eat. One of my book group members texted me from Jeff Kinney’s new bookstore, An Unlikely Story, and attached a photo of her husband and granddaughter.

Just what is it about these stores people rave about? The entries on Yelp are love letters. Locals are proud they have a great indie bookstore in their community. The stores are listed in travel guides.

Here’s my list of three things. There are no numbers since all of these things are important and the truly great stores are way above average on every one.

* Passion for wonderful books with strong impulses to tell others about a really great read. From product to people, this can’t help but shine through.
* A full and thought-filled selection. Show me something I’ve never seen. Surprise me. Help me find something for someone I love. Make me smile.
* Offer a warm and friendly atmosphere. From people to place, the bookstore feels good: welcoming, comfortable, peaceful, engaging.

When we’re asked to do a business valuation for an existing bookstore or potential buyer, we look at Yelp, review their social media sites, and look through the store’s website. We see the passion, sense of place, and warmth in everything they do. A bookstore destination grows out of love.

No wonder people will drive out of their way just to visit. We need these places in our lives.

While in New York City for BookExpo America, we used a window of time before the convention began to slip into the flagship Macy’s store on 34th Street. There was a cover story on “Macy’s magic” in the Delta Sky magazine and we were ready for a retail field trip.

Macy's flagship store in New York City, an American institution.

Macy’s flagship store in New York City, an American institution.

The iconic store has been featured in films and is beloved for its Thanksgiving Day parade tradition. In touring the store, it’s clear that Macy’s has embraced many traditions while keeping the store fresh and exciting.

For booksellers and all retailers, Macy’s is a model. Here are a few of the lessons we took away:

Keep Building On Your Reputation
Macy’s has been the fabric of New York City and is known throughout the world. The windows are kept fresh and interesting. Displays are constantly changing. The staff is friendly, happy, and helpful. The old creaky escalators still take you floor to floor. Their signature event remains the anchor of their marketing plan.

Cater to Your Customer
We walked by the kids shoe department and saw the adjacent display of skate boards in really cool colors, stacked up high ready for loads of summer fun. Macy’s knows people stay for hours and hours, so they’ve added food and beverage service in strategic places. Macy’s understands many of their customers are tourists. Near one of the main restaurants is a display of Macy’s branded merchandise, from dog bowls to t-shirts and tote bags that connect their logo with artwork they commissioned.

Create a Delightful Escape
The store is a destination. It sparkles. It smells good. There are beautiful displays everywhere you look. The graphics make the store feel alive with real people. Signage helps you find things. It’s a happy place. You can Macy’s online, but if you can, you want to go into the store.

In today’s retail, most department stores have had a tough time competing with online shopping. Not Macy’s. They embrace the art and science of retail and have created an American institution.

After spending three very full days with Jeff Kinney’s crew to prepare for the opening of An Unlikely Story, a bookstore cafe in Jeff’s hometown of Plainville, Mass., we toured the store together to admire the work that had been accomplished and learn more about the inventory selection.

What evolved was a beautiful conversation about why we so love to spend time in bookstores.

Mealtime fun! Many of these items came from Fred & Friends, "Airfork One", "Dinner Winner", and "Mealtime Masterpiece" paper placemats were some of our favorite picks.

Mealtime fun! Many of these items in Jeff Kinney’s new bookstore cafe came from Fred & Friends, “Airfork One”, “Dinner Winner”, and “Mealtime Masterpiece” paper placemats were some of our favorite picks.

Early on, when we began developing the non-book inventory, Jeff asked us to look for items that represented: “quality, imaginative, unique, not overly expensive, not pretentious.”

We watched price points (staying under $20) and looked beyond the typical items carried in the bookstore. Thinking about the people who live in the Plainville area, we searched for items that provided for “Family Fun” and items kids could purchase with their allowance money.

The goal is to make customers smile.

Birthday party items on display in the "Family Fun" section at An Unlikely Story

Birthday party items on display in the “Family Fun” section at An Unlikely Story.

Fun and weird books were put on display (otherwise found in the depths of the “Reference” section). Brightly colored journals (“Little Book of Awesome” and “Thoughts & Doodles”) prompt us to plunge into the creative side. Retro bicycle bells and “Mr. Bill” dolls went onto the Father’s Day display table. Colorful socks with amazing graphics filled an entire endcap at the far turn of the traffic path. And a whole side panel was devoted to birthday party fun.

When Jeff and his family came into the store to see how we were coming, our best initial feedback came when we overheard the boys say, “Wow!” and “Cool, look at this!”

As the team gathered to talk about the next step – officially opening the doors – we discussed what it really is that we want to accomplish. We agreed it’s about how we make people feel when they are in the bookstore.

There have been so many positive articles about indie bookstores this week … The Huffing Post on “Indie Bookstores Are Making A Comeback”, The Cultureist with the “10 Best Neighborhood Bookstores in New York City”, starting with Sunday’s New York Times feature Literary Lions United that only adds to Amazon’s PR nightmare.

Artisan crafted literary scarves carried by Prairie Path Books.

Artisan crafted literary scarves carried by Prairie Path Books.

I predict this will be a wildly successful year for Small Business Saturday, the important shopping day after Black Friday on Thanksgiving weekend. Thanks go American Express and their marketing brilliance, more and more people have paused to think about where they shop … and what that says about their values.

This interest in everything local is visible in a growing number of ways in western culture. We’re eating locally grown foods, shopping with companies that will strengthen our local economy, and discover items made by real human hands.

That’s why it’s the era of indie and Etsy. Today, I received the monthly email from a new indie bookstore outside Chicago, Prairie Path Books. Featured are lovely scarves and gloves with a literary theme from Storiarts. I’ve got my wallet out and I want to be first in line for The Secret Garden scarf, beautifully presenting words and graphics from this precious classic story.

Indie bookstores and indie artisans. What a perfect pairing. You can’t beat having an indie bookstore with unique items in a neighborhood bookstore, run by your neighbors, in your community. Small can be powerful, especially when we’re playing the same tune and dancing the same dance.