The Distributor Dilemma

In case you missed it, another book distributor has closed its doors. Blu Sky Media recently succumbed to economic uncertainties, losses of collectibles, returns, and all the associated cash-flow challenges. This is a shame. Blu Sky was one of the shrinking number of distributors around who would take on small publishers. CEO Greg Snider is a nice guy, and I’m told he’s very accommodating. Even today, he’s working to help his publishers find alternate distribution. But being a nice guy who’s easy to work with doesn’t offset the not-so-nice economics of this business. Lots of people are going to be hurt, not just Blu Sky.

It’s discouraging, too. Every publisher who hopes to thrive in the book trade needs to have a distributor, especially when so many books are competing for shrinking trade attention. Both optimism and desperation can seduce publishers to sign up with the first distributor that will take them. What they need to do, especially now, is resist the temptation and be selective.

Publishers who are looking for distributor to work with still need to ask the basic questions about territory, commissions, fees, chargebacks, returns, and reports, and they still need to explore how suitable the distributor is.

Now, publishers need to inquire about finances, too. Most distributors are not likely to open their records to publishers who offer only a few books, but they should answer questions about things like returns, collections and defaults, the punctuality of payments. Publishers can ask other clients of the distributor about their experience with payment history and overall financial accountability. These have always been part of due diligence. Today, they are just more urgent.

The problem is not so much in book distribution as it is in the book business in general. The “digital revolution” is turning everything on its head, including publishing. Authors and publishers have recognized this and sought out new ways to sell books (in whatever form their books have taken). Distributors need to be just as creative. Not even that will guarantee success, but consider the alternative of doing nothing.