Quotulatiousness

January 30, 2022

“I stand corrected. All retail sucks, not just book retail”

Filed under: Books, Business, Economics — Tags: , — Nicholas @ 03:00

Following up to the issue of book store-to-publisher returns last week (here), Kenneth Whyte discovered that other retailers are not that different from the book business after all:

“Indigo Books and Music” by Open Grid Scheduler / Grid Engine is licensed under CC0 1.0

Last week I wrote about the horrible, wasteful publishing-wide policy of booksellers returning unsold books for full refunds rather than putting them on sale. Some 30 percent of books in stores are sent back to publishers who bury, pulp, or remainder them. I compared this practice to other retail sectors:

    If I were in the ugly sweater business, I’d sell 500 ugly sweaters to Saks at $200-a-piece. Saks pays me 500x$200=$100,000, marks the ugly sweaters up to $500, and lays them out on tidy glass shelves under track lighting. Whatever is left after the Christmas season is marked down to half price on crowded sales racks. If Saks still has some ugly sweaters in January, it will ship them to the outlet store where they’re offered at still greater discounts.

Our friend, author and regular SHuSH reader Ken McGoogan, sent my comments to a mature student he teaches. She comes from the fashion industry and says it’s not so simple:

    The reality is, if Saks cannot sell that ugly sweater, they will ask for mark-down money from the brand (the wholesaler) who sold them that ugly sweater. If the brand is not willing to give Saks that mark-down money, they will never carry anything from the brand again. Is mark-down money better than returns? Honestly, it’s not that much better. The amount of the mark-down money is an often shocking figure. And this is not just for Saks, all big retailers do it, without exception.

    Barnes & Noble or Chapters are just like department stores. The business model is the same. The only thing is, if the readers found out how much waste the book returns are generating every year, it’ll be a big turn off for the customers. They’d rather force themselves to read e-books or audio books than be part of the wasteful culture. Especially for the younger generation, they are buying less garments because of the fashion industry’s wasteful level. Fyi, a lot of new clothes and unsold inventories are burned every year as they are running out of storage spaces.

I stand corrected. All retail sucks, not just book retail. And the book industry had better sort this out before the aforementioned younger generation begins to focus on it.

January 23, 2022

The oddity of the bookselling business

Filed under: Books, Business, Economics — Tags: , , — Nicholas @ 03:00

Unlike so many other retail operations, book stores have a different sales cycle because they can generally return unsold books (in good condition) to the publisher for a full refund. This means that 30% or more of the books on the shelf at Christmas will be shipped back to the publisher early in the new year, only to appear again on the discount shelves a year or two later for a fraction of the original retail price (and often in rather worse shape for all the additional handling). In the latest SHuSH newsletter, Kennethy Whyte calls this the worst problem in book publishing:

“Indigo Books and Music” by Open Grid Scheduler / Grid Engine is licensed under CC0 1.0

Book publishing doesn’t work like most other retail businesses. If I were in the ugly sweater business, I’d sell 500 ugly sweaters to Saks at $200-a-piece. Saks pays me 500x$200=$100,000, marks the ugly sweaters up to $500, and lays them out on tidy glass shelves under track lighting. Whatever is left after the Christmas season is marked down to half price on crowded sales racks. If Saks still has some ugly sweaters in January, it will ship them to the outlet store where they’re offered at still greater discounts.

What happens to them if they don’t sell at the outlet doesn’t interest me because I’ve got my $100,000. If Saks ordered far too many ugly sweaters, that’s Saks’ problem.

In the book world, I sell 1,000 copies of a book to a retail chain like Barnes & Indigo for $15-a-piece, half the retail price. Barnes & Indigo pays me 1,000x$15=$15,000 and maybe puts some of the books on a front table, or maybe buries them on a bottom shelf in the darkest corner of the store. I might sell a two hundred, four hundred, or six hundred copies.

Let’s be generous and say 600 sell at Barnes & Indigo through the autumn and over the holidays. Come January, the store doesn’t put the remaining stock on sale: it packs up the unsold 400 and ships them back to me for a full refund. The 400 returns, or at least those of them that aren’t crumpled or coffee-stained, go back into the warehouse, which charges me fees to process the returns and more fees to store them. Sometime later, I get a notice of the returns and regret that extra glass of wine I ordered at dinner the night I thought I sold Barnes & Indigo $15,000 worth of books when, in fact, I only sold $9,000 worth of books, perhaps leaving me under-water on that particular title. I also regret boasting of the $15,000 sale to the author, who probably did some royalty math in his head and thought he was getting 40% more than he’ll actually receive.

Returns at publishing houses run somewhere between 25% and 30% annually, across all titles. That’s despite Amazon with its ruthlessly efficient algorithms seldom buying many more copies than it needs, and despite ebooks and audiobooks (which amount to a quarter of sales for many publishers) having almost zero returns.

Millions of books are returned to publishers at this time of year. Sales are slower in January and February, so bookstores hurriedly return all their remaining holiday-season stock and whatever else hasn’t moved to keep themselves in cash. Some of the returns go back into storage. Eventually, most are remaindered, or pulped, or buried. It’s a colossal waste of paper and ink, a headache in terms of shipping/handling/accounting, and dispiriting as heck. You might think you had a great year, hit all your sales targets, exceeded them, even, and then in about the third week of January begins the drip drip drip of returns, and it continues steadily through March. That’s if you’re lucky and it’s drips, not waves. And while the returns are concentrated in the first quarter, your books are returnable year-round, so even a pleasant summer afternoon can be ruined by the unexpected arrival of a pallet of unwanted stock.

December 26, 2021

QotD: Boxing Week Sales

Filed under: Business, Humour, Quotations — Tags: , — Nicholas @ 01:00

I’ve done a few tours of duty behind a cash register. The job takes your soul, twists it like a wet chamois and runs it through the shredders they use to turn car hoods into tinfoil strips. […] When I lived out east, the relationship between cashier and customer was the same as that between a German gunner and the troops disembarking at Normandy.

James Lileks, “Backfence: Beyond new store’s hype, genuine smiles”, Minneapolis Star Tribune, 2004-08-03.

August 14, 2021

Great Moments in Unintended Consequences (Vol. 3)

Filed under: Britain, Cancon, Government, Health, Humour, USA — Tags: , , , , , — Nicholas @ 02:00

ReasonTV
Published 7 May 2021

Good intentions, bad results.

——————
Follow us on Twitter: https://twitter.com/reason​

Reason is the planet’s leading source of news, politics, and culture from a libertarian perspective. Go to reason.com for a point of view you won’t get from legacy media and old left-right opinion magazines.
—————-

Window Wealth
The Year: 1696
The Problem: Britain needs money.

The Solution: Tax windows! A residence’s number of windows increases with relative wealth and is easily observed and verified from afar. A perfect revenue generator is born!

Sounds like a great idea! With the best of intentions. What could possibly go wrong?

To avoid higher taxes, houses were built with fewer windows, and existing windows were bricked up. Tenements were charged as single dwellings, putting them in a higher tax bracket, which then led to rising rents or windowless apartments. The lack of ventilation and sunlight led to greater disease prevalence, stunted growth, and one rather irate Charles Dickens.

It took more than 150 years for politicians to see the error of their ways — perhaps because their view was blocked by bricks.

Loonie Ladies
The Year: 1992
The Problem: Nude dancing is degrading to women and ruining the moral fabric of Alberta, Canada.

The Solution: Establish a one-meter buffer zone between patrons and dancers.

Sounds like total buzzkill! With puritanical intentions. What could possibly go wrong?

It turns out that dancers earn most of their money in the form of tips, and dollar bills don’t fly through the air very well. Thus, the measure designed to protect dancers from degrading treatment resulted in “the loonie toss” — a creepy ritual where naked women are pelted with Canadian one-dollar coins, which are known as loonies.

Way to make the ladies feel special, Alberta.

Gallant Grocers
The Year: 2021
The Problem: Local bureaucrats need to look like they care.

The Solution: Mandate that grocery stores provide “hero pay” to their workers.

Sounds like a great idea! With the best of intentions. What could possibly go wrong?

Besides the fact that these ordinances may preempt federal labor and equal protection laws, a 28 percent pay raise for employees can be catastrophic to grocery stores that traditionally operate on razor-thin margins. As a result, many underperforming stores closed, resulting in a “hero pay” of sudden unemployment.

Don’t spend it all in one place!

Written and produced by Meredith and Austin Bragg; narrated by Austin Bragg

April 29, 2021

QotD: Searching for useful reading lights

Filed under: Books, Humour, Quotations — Tags: , — Nicholas @ 01:00

The room, in addition to its other drawbacks, was always underlit. But it’s proving a major challenge to find nifty lamps that also give enough light to read by. All the cool Art Nouveau sort of stuff only go up to 60 watts max, which, for a reader, is like switching on the darks. And the lamps in stores are not logically arranged by wattage; one has to wander about turning them upside down and peering at the little sticky labels on the sockets for a clue, for yea verily, the sales staff has none. They are not readers either, sigh.

Lois McMaster Bujold, letter to Baen’s Bar, 2004-10.

March 21, 2021

The two Britains, gastronomically speaking

Filed under: Britain, Food, Health — Tags: , , , , , — Nicholas @ 05:00

Theodore Dalrymple on the British diet (at least before the neverending lockdowns):

“The Joy of Cookbooks” by shoutabyss is licensed under CC BY 2.0

As in many other things, the population has divided into two: those with increasingly refined tastes in gastronomy, and those who eat mainly junk and takeaway food for the quickest but also crudest possible gratification.

Gastronomy often seems the only aesthetic sphere in which the modern British display any real interest. Their dress, their music, their art (or at least such as gains any publicity), their literature, and of course their architecture, are hideously ugly, even militantly so, but a Michelin-starred restaurant receives their adulation — or did in the now-distant days when restaurants were open.

But the modern interest in food is not the same as a mass market for fish, which has, alas, mainly to be cooked, and the fact is that the British are, grosso modo, too lazy and ignorant to cook properly. Many millions of them would be horrified by the sight of a whole fish, or even any part of a raw fish: they don’t want to eat anything that hasn’t been through a complex industrial process, had chemicals and preservatives added to it, and cannot be just stuck in a microwave for a few minutes before consumption in front of the television. Besides, they wouldn’t know what to do with a fish, let alone a crustacean.

It is said that about a fifth of British children do not eat a meal with another member of their household (family would, perhaps, be a misleading term) more than once a fortnight, turning meals into asocial and even furtive occasions. Many households do not have a dining table, and in my visiting days as a doctor I discovered that the microwave is often a household’s entire batterie de cuisine.

This slovenly and asocial approach to eating — evident in the detritus left behind in British streets as people eat wherever they happen to be, in their cars, walking along, in trains and buses, in fact anywhere but a dining room and with others — is not the consequence of poverty, but of a degraded style of life.

Many years ago I noticed that shops in poor areas where there were many immigrants of Indian origin had enormous piles of a vast array of vegetables so cheap that the problem was carrying them home rather than their cost. I would see Indian housewives selecting their purchases with care and attention: the quality and not just the price mattered to them. Uncompelled by economic necessity to shop there, I would nevertheless do so; but I never saw poor whites doing so. The problem with all those vegetables was that they required cooking, preferably with skill, which very few poor whites, as against poor Indians, had. And this is a cultural problem, if the taste for and consumption of a diet of junk food (what the French more vividly call malbouffe) is a problem.

The Indians are fat, with bad health consequences, from eating too much good food; the native British, with bad health consequences, from eating too much bad food. The prevalence of obesity in Britain, greater than in most other European countries, is possibly one of the reasons that its death rate from COVID-19 is so high, among the highest if not actually the highest. And this obesity is immediately obvious on arrival in Britain from any European country.

March 15, 2021

Target is careful to only cite economic reasons for abandoning their downtown Minneapolis headquarters

Filed under: Business, Economics, USA — Tags: , , , — Nicholas @ 03:00

Jon Miltimore explains why the Target corporate headquarters in Minneapolis will be given up — for reasons that go beyond the claimed success of the telecommuting encouraged by the 2020 pandemic lockdowns:

A building burning in Minneapolis following the death of George Floyd.
Photo by Hungryogrephotos via Wikipedia.

Target Corporation, the eighth largest retailer in the United States, announced in an email to employees on Thursday that it will be leaving the City Center, its primary downtown Minneapolis location.

Company officials cited improved remote work opportunities and less need for space as the drivers for the decision.

“In just one year we’ve proven that we can drive incredible results, together, from our kitchens and basements and living rooms,” said Melissa Kremer, executive vice president and leader of Target’s human resources operations.

Target, the largest employer in Minneapolis with some 8,500 corporate workers, says the 3,500 employees who work at the City Center will still have a “home base,” but it will be at another Minneapolis location or in the nearby suburb of Brooklyn Park.

A Story of Capital Flight?

On one hand, there is little reason to doubt Target’s explanation for abandoning its headquarters. Many anticipated that the pandemic would lead to a normalization of remote work.

“The future of work will be distributed,” Erica Brescia, the chief operating officer of Github, told the BBC last fall. “We’re going to see a big shift from office by default to remote by default.”

Part of that shift, it’s reasonable to assume, would be corporations moving away from high-end corporate real estate. Yet it also shouldn’t be forgotten (or ignored) that Target’s decision comes less than a year after Minneapolis suffered some of the worst riots in US history, prompted by the May 25 death of George Floyd.

The riots — which broke out after a video went viral showing police pinning Floyd, a 46-year-old black man, to the ground for nearly nine minutes before he died — caused an estimated $2 billion in damage.

Though Target made no mention of the riots in its announcement, last summer I noted that an abundance of evidence suggested that the economic damage of the riots would persist long after the wreckage had cleared.

February 19, 2021

QotD: The disillusionment of working in a bookshop

Filed under: Books, Britain, Business, Quotations — Tags: , , , — Nicholas @ 01:00

For the better part of 2006, while studying for a master’s degree, I worked part-time in a branch of Waterstone’s, in *REDACTED*, the county capital of *REDACTED*.

I got the interview by stating openly in my covering letter that I was 24, still living with my mum, and asking her for train-fare had become a bit undignified. This seemed encouraging. But then the panel (2 pax.) asked what I was reading currently, and I said Sam Harris’s The End of Faith, and there was awkward silence. This set the tone for almost every “literary” chat thereafter.

Call me an idiot, but I was genuinely stunned to find we weren’t allowed to read on the job. Instead, booksellers had to devote any time not spent actually dealing with customers (which on a rainy weekend, in the wrong bit of the shop, could be a lot) with often-fruitless searches for books which had been lost, mis-shelved, or maybe stolen, or because they had to be returned to publishers (another surprise), and at the publisher’s expense.

I also quickly realised that the layout of the shop was not an accident (even in the jury-rigged “commercial” buildings of many an English town centre), and that the unadvertised steering of a customer around a bookshop was near-identical to how the algorithms work in the online equivalents (or vice versa, probably). If you like Poetry, you’re more likely to also like Philosophy, (right here on the next set of shelves), or Music (by the window), or History books (just across the room there), than if you came in looking for the latest Jeffrey Archer novel (downstairs, on the pile-’em-high islands).

Most of the time, I was just moving “stock” about, taking maddening credit card orders over the phone, or walking people literally to alphabetised mass-market fiction. All of which required no interest in, let alone knowledge of, literature. To a middle-class nerd such as myself, discovering that working in a bookshop [cue poetic images of James Frain, or similar] was fundamentally no different from working in a Sports Direct or Tesco was about the most depressing thing imaginable. That, and waiting for the Sunday trains in winter.

A.S.H. Smyth, “Seven kinds of people you find in bookshops”, The Critic, 2020-11-14.

December 23, 2020

No, Console Scalpers Aren’t Ruining Christmas

Filed under: Business, Economics, Gaming, Media — Tags: , , , — Nicholas @ 04:00

Foundation for Economic Education
Published 22 Dec 2020

Support Out of Frame on Patreon: https://www.patreon.com/OutofFrameShow

Check out our podcast, Out of Frame: Behind the Scenes: https://www.youtube.com/channel/UCiS5…

As we enter peak holiday season, most people have their shopping done by now, but as always, many are scrambling last-minute for their purchases. And if you aren’t one of those early-birds fortunate enough to procure a PS5 or Xbox Series X, you can guarantee that you won’t be able to find one unless you’re willing to pay $1,200 to a scalper.

Many are understandably frustrated. How is it fair for people to buy up the consoles at $500 and sell for nearly double or triple the cost? “There ought to be a law” against that kind of thing — right?

Well, in short, there’s nothing wrong with scalping — and a few economic lessons will help explain why.

Scarcity is real and so is time-preference. Scalpers (and even bots) show that demand for some goods is so high that people are willing to pay several times the list price — which could provide a lot of information to Sony and Microsoft on how many consoles to produce and in what parts of the world. They could factor that information into the future, so there would be less problems with availability, but most retailers make this information exchange impossible.

______________________________
CREDITS:

Produced by Sean W. Malone
Written by Jen Maffessanti & Sean W. Malone
Edited by Paul Nelson
Asst. Edited by Jason Reinhardt

December 21, 2020

Horrible Christmas music in retail stores – X-mas Music

Filed under: Business, Humour, Media — Tags: , , , — Nicholas @ 04:00

Viva La Dirt League
Published 14 Dec 2020

Rowan thinks its a good idea to play X-mas music in the store for the entire Christmas period … and the staff aren’t happy

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December 4, 2020

5 strange Canadian objects

Filed under: Cancon, Food, Football, History, Humour, Randomness — Tags: , , , — Nicholas @ 02:00

J.J. McCullough
Published 22 Jul 2017

Let’s take a look at a couple of weird things only Canadians will understand.

O Canada ending music care of SuperNIntendoGameboy, check out full version here: https://www.youtube.com/watch?v=b0qmP…

October 27, 2020

QotD: Trader Joe’s

Filed under: Business, Food, Humour, Quotations, USA — Tags: , — Nicholas @ 01:00

Remember grocery shopping? You might not have done it in a while, at least in person. But one place that’s fun to shop is Trader Joe’s. Describing itself as “your neighborhood grocery store,” Trader Joe’s has some pretty good products at pretty good prices. It’s the place to go if you like Whole Foods but you can’t afford Whole Foods. The vibe is laid back, the staff is always friendly, there are fun little oddities you can’t get anywhere else, and it has inexpensive but almost always drinkable booze. Usually the biggest problem with shopping at TJ’s is navigating through the crowd of rude liberals who don’t think they need to be civil to other people in real life because they donate to Greenpeace and the Sierra Club.

Jim Treacher, “Trader Joe’s Apologizes for Being Racist”, P.J. Media, 2020-07-20.

September 26, 2020

QotD: A visit to Pyongyang Department Store Number 1

Filed under: Asia, Business, History, Quotations — Tags: , , , — Nicholas @ 01:00

He [Anthony Daniels] sees throughout these Marxist backwaters a physical infrastructure comprising perhaps the most ugly and dehumanizing architecture known to man. The cavernous emptiness of all public spaces and the gigantism of the buildings are designed to intimidate, to belittle and to discourage insurrection by making every crowd seem small. Any pre-Communist architecture not destroyed to make way for these monstrosities is charming only because it is preserved by a lack of economic development, which also, however, ensures its eventual degradation.

What few consumer products he finds are of the very worst quality, with packaging that provides as little information as possible and that destroys all confidence in its contents. Even the material shortage of these products has its uses to the state, however, as they remind the comrade that it is only by the good grace of their leaders that they eat, and when one spends all afternoon queuing for an item that turns out to be unavailable, there is little time or energy left for revolution. Besides, isn’t the desire for consumer goods artificially created by capitalists to enslave the proletariat?

Nowhere is the dishonesty of this last belief (as well as the sheer insanity of modern North Korea) better illustrated than in Daniels’ description of his visit to the creatively-named Pyongyang Department Store Number 1. He wanders into the store without a minder and is dumbstruck by his eventual realization: the entire store is a fake. Although it is a frenzy of activity and is filled with beautifully packaged and artfully arranged consumer goods, no one is actually buying anything. Daniels watches individual “shoppers” go up and down the escalators or exit and re-enter the store in a continuous loop of simulated shopping. At the line for a cash register, cashiers and customers stare aimlessly past each other, unmoving. Under Daniels’ gaze some of them realize they are found out and cast about nervously, wondering what to do next. “I did not know whether to laugh or explode with anger or weep,” he says. “But I knew I was seeing one of the most extraordinary sights of the twentieth century.”

Arnold Beichman, “The Wilder Shores of Marx: Journeys in a Vanishing World”, National Review, 1991-10-21.

December 24, 2019

It’s 2019 and Drew Magary still hates Williams-Sonoma

Filed under: Business, Humour — Tags: , , , — Nicholas @ 05:00

He’s been hating on the company for a while, but it’s still doing the things that got him riled up in the first place:

Oh, hello there! Welcome! Come on in! Come on in! Dust your boots off in the breezeway. I have a special mat you can use for it that’s woven from human hair sourced from the tribes of the South Pacific. Best snow-wiping hair ever designed, by God. Once you’ve cleaned up, I have a splendid repast of beggar’s purses and dolloped lobster turnovers awaiting you in the dining room. You may begin eating these haute goodies at 7:45 pm and no sooner. Please do not touch ANY of the decorations in the hallway as you proceed toward the food. My decorations are for admiring only. If you mar them in any way, I will grate off your genitals using a microplane. I am the Joneses. You cannot ever keep up with me.

I got that microplane from the Williams-Sonoma catalog, by the way. True, I COULD have bought a microplane at your local Pathmark. They have a rack of them hanging above the Pop-Tart shelf for some reason. But why buy one there when I can support my local (international) mom-and-pop (publicly traded) store (merchandising oligarchy) instead? I’m no fool. I know what’s best for America, and what’s best for America is ignoring every horrible thing going on and, instead, assigning two entire months on the calendar to spoiling myself, cutting down precious wildlife, and indulging in retail spending practices so irresponsible that every accountant on the planet cries their eyes out at night just thinking about it all.

I am hardly alone in such rituals. Try as you might, Christmas fiends, you cannot kill Williams-Sonoma. I know because I’ve been shitting on this company’s catalog every Christmas for YEARS, as a matter of both tradition and moral principle. But all of my efforts to drown this yuppie trinket hive in the toilet have seemingly been in vain. In fact, last year, I myself nearly died before this company did. And I’m a sturdy fellow. I work out an elliptical trainer five times a week and occasionally eat fruit. I am strong. I am invincible. I AM MAN. Alas, I am no match for a company wily enough to sell Star Wars Le Creuset roasting pans for $450 (HOLY LIVING FUCK) and somehow make it work. How does W-S do it year after year?

Well, according to an article I just Googled, the company is strong in something called “omnichannel retailing,” a term I will look no further into because I don’t hate myself. Also, millennials apparently LOVE West Elm, which W-S also owns. West Elm is IKEA for people who don’t want to say they bought their furniture at an IKEA, so that all tracks. I have West Elm furniture in my house. It’s alarmingly small furniture. Really, only my dog can fit on the chair we got. He weighs 15 pounds.

Also, the company has shuttered a lot of brick-and-mortar Williams-Sonoma locations in favor of selling designer chicken coops directly to hotels, banks, and other industrial concerns. OH WOW DID I JUST SEE THE CHRISTMAS SPIRIT METER ON SANTA’S SLEIGH SPIKE INTO THE RED? You know I did. According to every Christmas movie I’ve ever watched, Christmas spirit is in great peril every year. That’s why we need overpriced fondue pots more than ever.

December 22, 2018

QotD: Christmas shopping

Filed under: Business, Humour, Quotations — Tags: , , — Nicholas @ 01:00

A day in the life of a male Christmas shopper is one of trepidation and resignation.

Let’s be honest, the expectations on a guy at Christmas time to come up with the perfect gift are tremendous. Are we equal to the task? No.

Not to paint everyone with the same brush, and there are exceptions which prove the rule, but guys are out of their element when it comes to Christmas shopping … or shopping for that matter.

Christmas shopping for women is like deer hunting season for guys. They prepare for the season, they’ve spent hours scouting, they’re dressed for it, they read all the magazines, purses and budgets are finalized, and when they hit the woods, er, I mean the stores … they are ready to make the kill.

Men on the other hand, are like the deer caught in the proverbial headlights.

Todd Hamilton, “Gift-hunting season opens”, Interior News, 2004-12-23.

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