Publishers are upset with Borders as recommended retail prices are seen to maximise sales potential. Photo / Herald on Sunday
Bookseller Borders' Christmas catalogue specials have incensed book publishers after certain titles were marked up beyond their recommended selling price.
The retailing group, which has five stores in New Zealand, has marked up prices on a number of books in its Christmas catalogues, selling them well above what
rival bookstores would be retailing them for.
But it has included a price guarantee - a Bunnings Warehouse-type sales device that promises to match a lower price advertised elsewhere, leaving the onus on the buyer.
"I don't think it's an argument for hiking prices by 10 per cent and then saying on the same page, we've got the best prices guaranteed. I don't see how they can do that," said one independent publisher.
The publishing industry is unique in that booksellers such as Borders buy their books at a discount off the recommended retail price (RRP) set by publishers, rather than the more conventional addition of a margin above the nett purchase price.
The publisher, who asked not to be named, was angry when he noticed one of his books marked up 10 per cent above the RRP - the price it is selling for everywhere else.
Even big names such as Random House and Penguin are affected.
He said: "It affects our income, it affects the author's income and I think it's deceiving the public."
The RRP is a constant source of tension between publishers and retailers, but few wanted to speak out as Borders was part of the A&R Whitcoulls Group, which also runs Whitcoulls stores - making it the country's largest bookseller. Book publishers association president Tony Fisk said the RRP remained a guide, rather than a rule.
"It's frustrating from the publisher's point of view because obviously they try and give a steer on a price which they feel that the book will maximise its sales opportunity ... It can be frustrating if the retailer ups prices, it doesn't sell and then sends them back."
Borders managing director John Coote acknowledged that certain titles were priced above the RRP, but the move was needed to remain commercially sustainable. "We have an exceptionally large range of books and great experience-based store formats that our customers enjoy ... it's one of the only places where customers can comfortably browse books before they purchase them. However, it requires higher running costs than other book stores."
Many of the store's titles were priced at or below the RRP, he said.
