Grub Street Printing Newsletter #12 Aug./Sept.2009

Chain Store Sales Up 4.8%

Chain bookstore sales rose in the first quarter of 2009 with Barnes & Noble reporting a 6.6% gain and their Superstore sales up 8.1%.

Shaman Drum Closes

Shaman Drum Books has closed in Ann Arbor after 29 years. Its owner, Karl Pohrt, had become a leading voice for independent booksellers across the country. Karl’s first article of what will be an ongoing commentary on the book world can be found at the web site of the now defunct Ann Arbor News (after 174 years of daily newspaper production)

http://www.annarbor.com/passions-pursuits/welcome-to-annarborcom-bookland/

Espresso 2.0 at Book Expo

I spent a lot of time watching the Espresso 2 (Newsletter No. 8, Dec. 2008) one-book-at-a-time book maker produce perfect bound books at Book Expo. The hype? “Ultimately…(it) will make it possible to distribute virtually every book ever published, in any language, anywhere on earth as easily, quickly and cheaply as email.” Maybe, but for now the production cost of a small book starts around $10.00.

Ingram has offered access to any book printed through Lightning Source to stores and institutions operating an Espresso 2.0.

Amazon

Because to some folks a book needs to be more than a book, Amazon is studying the impact of the Kindle experience “if and when we introduce ads”.

Hotel Readers

New York’s Algonquin Hotel offers guests the use of an Amazon Kindle during their stay and “Club Level” guests at Miami’s Epic Hotel are offered a “virtual nightstand” as part of the Epic Page Turner guest reader program (sponsored by Hachette Book Group). Sony Readers are offered on a first come basis. Purchasing titles is the guests expense.

Kindle 2

Author Nicholson Baker examines the Kindle 2 and reports on what it is and what it isn’t in the August 3 New Yorker.

One Stop Info

The numerous industry links on the News page of The Publetariat (continuously updated) offer a quick round-up of book news from PW, New York Review of Books, Slate, The Guardian, etc.

Newspaper News

Transcontinental (North America’s 6^th largest printer) has purchased 4 triple wide KBA newspaper presses totaling 16 towers for its plants in Toronto, Calgary, and Vancouver.

Grub Street Printing Newsletter #11 June/July 2009

Google Settlement

Orphan works are books whose copyright holders cannot be located. Last year the House of Representatives let a bill expire without a vote that would have opened access to these works. Now Google has taken it upon itself to seek monopolistic rights (“the Settlement”)to these works via the legal system.

Global Paper Demand Rebounds

Domtar Paper has announced that it’s reopening its Baileyville, Maine pulp mill due to an increase in global paper demand. The plant produces 398,000 air dry metric tons annually. It closed May 5.

The Bad News is Good News

Borders and Barnes & Noble reported 1^st quarter losses in late May. B&N lost $2.7 million while Borders lost $86 million. Expectations were so low that both stock’s share prices rose after the announcement.

Flat is the New Up

Or so we were told at a Book Industry Study Group seminar at Book Expo America. Overall book sales climbed roughly 1% with 1.8% growth expected in 2010. For an overall look at the sector by sector sales analysis go to http://www.slideshare.net/bisg/bookexpo-america-book-industry-trends-2009 .

The Last Quebecor Story?

R.R. Donnelly, the world’s largest print services provider, has retracted its offer to purchase Quebecor World before it emerges from bankruptcy this July.

Had the offer been accepted by Quebecor’s directors (and U.S. and Canadian courts) Donnelly would have acquired all five of its largest competitors in the past decade.

Donnelly profits declined 92% in the 1^st quarter.

I doubt this story is over. Donnelly began speaking with key participants in the bankruptcy filing last September.

B&T do P.O.D.

Baker & Taylor has contracted with R.R.Donnelly to establish a book “print on demand” division in its Momence, Illinois distribution facility to compete directly with Ingram’s Lightning Source.

Digtal vs Offset 2008

Bowker reports that the number of titles printed “traditionally” (offset) declined 3.2% while “on demand” titles increased 132%, the third straight year of triple digit growth.

Beware of Scammers

Hucksters abound in the publishing services business. Go to http://www.sfwa.org/Beware/, the SFWA site that identifies and details most of the scams and how to recognize them.

Heidelberg Presses

Heidelberger Druckmaschinen AG, makers of legendary Heidelberg presses used by book manufacturers around the world announced that new press sales declined 18% last year.

Grub Street Printing Newsletter #10 April/May 2009

Is There Hope for Borders?

After just a few months on the job, Borders CEO Ron Marshall said, “We are really focused on re-engaging our customers in a way Borders hasn’t been for a while…the serious bookseller for the serious book lover.” As a fan and customer of the first Borders Books in Ann Arbor many years ago, I wish him all the luck.

The Museum of Printing

I know printing isn’t everyone’s cup of tea, but I just found out there’s a Museum of Printing in North Andover, MA displaying 500 years of graphic arts technology. For additional information, and hours of operation go to http://www.museumofprinting.org/index.html

Quebecor Emerges

Despite posting a 4^th quarter loss in excess of $654 million, Quebecor (North America’s second largest book printer) has said its restructuring is complete and it hopes to emerge from bankruptcy this July

Libel Tourism

While the states of Illinois and New York passed bills to protect their authors from damages in libel cases adjudicated overseas, the US Senate let S. 2799 die without a vote last year. Please watch this short video www.thelibeltourist.com that illustrates the importance of this bill.

E Hubris

Russell Wilcox, CEO of E Ink, the company whose technology makes possible the Kindle and Sony reader screens said, “We’re not only going to save publishing, we’re also going to save civilization.”

It Just Gets Better

Perseus Books Group announced that some of its titles will be available for reading on your cell phone.

At last.

Closing

Courier Corp. has announced that it closed its subsidiary short run book manufacturer Book-Mart Press of North Bergen NJ. Courier’s largest division is Dover Publications.

140 Character Maximum

Forbes Silicon Valley editor Lee Gomes observes that Twitter may have stifled complex discourse with its 140 character “tweets”. He writes in the March 30 edition, “Since Plato, people have been complaining about shrinking attention spans. But the recent acceleration of the decline is breathtaking.”

I thought that digerati were forbidden to do anything but gush?

eAdvance Readers?

Random House, Simon Schuster and others have agreed to occasionally offer free, downloadable copies of their new titles from www.Scribd.com as books or excerpts. They are hoping to generate some internet buzz.

Grub Street Printing Newsletter #9 Feb./March 2009

Consumer Product Safety Comm.

The CPSC kicked off February by delaying implementation of the stupidest law of 2008 for one year. The requirement for lab testing and certification of lead content in children’s books will be reviewed further.

Borders Turnaround

Borders has replaced turnaround expert George Jones with turnaround expert Ron Marshall as CEO.

Kindle 2

While Wall Street analysts admit Amazon’s e-book reader Kindle is hardly a success yet (even at a million sales) the introduction of Kindle 2 has the digerati swooning in ecstasy.

New features include a joystick, smaller buttons to avoid accidental page turning, and faster page loads.

Everything I’d want in a book.

The Anti-Kindle

If, on the other hand, the evolved book form brings you comfort, check out www.featherproofbooks.com/Mambo.

Review their titles, print out and fold a Mini-Book and discover a publisher for whom books are part of the creative process, not just an information delivery system.

Frankfurt Survey

About 1,000 attendees (out of almost 300,000) at the Frankfurt Book Fair volunteered for an industry survey. 40% believed digital distribution would surpass traditional book sales by 2018.

One third of those surveyed disagreed and thought it will never occur.

It’s a Different World

Even if you don’t have a name and avatar in the virtual online world of Second Life, you now have an incentive to visit at www.secondlife.com. Sign up (free) and log in to tour “Printalution”, a virtual island where basic print workflow and methods are presented for graphic arts students and the print community.

New Uses for Old Presses

A starring role in the movie Seven Pounds with Will Smith and Rosario Dawson is saved for a 1955 Heidelburg Windmill letterpress. An evil little Chandler & Price hand fed letterpress is the featured villain.

Is the growing popularity of letterpress printing a reaction to digital output? Does toner smell as good as ink?

Also, Konarka (Lowell, MA) produces flexible plastic solar panels on an offset printing press originally used by the defunct Polaroid Corp.

New Uses for New Presses

Toppan Printing (Japan) prints tenth generation LCD television color filter masks as well as photo masks used in semiconductor production. Toppan has net sales exceeding 16 billion dollars and is the world’s largest printing company by revenue.

Grub Street Printing Newsletter #8 Nov./Dec. 2008

On Demand Books

The Espresso 2 book making machine has just been introduced by On Demand Books. The stand alone machine can produce a perfect bound book in 5 – 10 minutes at a cost of around $10.

The University of Michigan Library purchased an Espresso 1.5 in September of this year (about $100,000) and is already approaching 2 million available titles for production.

Is browsing at Borders about to go the way of the 5^th Avenue Easter Parade?

Border’s Blues

With private equity firms hoarding whatever funds they have, Borders Group announced it has abandoned its search for a suitor and will continue to attempt to grow its business alone.

Border’s stock has fallen from $12 to $.69 per share this year. The NYSE requires a minimum share price of $1.00 to be listed.

Freight 101

It took years for me to understand LTL (Less Than Truckload) freight rates, classes and tariffs. Here’s a simple explanation of the LTL pricing structure (and it offers the name of a carrier currently offering 70% discounts) http://www.logisticsmgmt.com/article/CA6601818.html. A free subscription to Logistics Management is also available at this site.

Package Delivery Rates Going UP(S)

Although gasoline prices have fallen to their lowest level in 4 years, UPS has announced a 5.9% price increase effective January 5 on all ground and LTL services. Air services will increase 4.9%

Also, the US Post Office announced a $2.8 billion loss for the fiscal year ending September 30. Pundits say to brace for a significant increase.

Chasing 1%

Random House just announced it will increase the number of its titles available as e-books to 15,000.

While quick to point out that e-book sales more than doubled this year, Random House acknowledges that e-books have captured less than 1% of total book sales.

With Regret

Robert Cooper, former Executive Secretary of the American Federation of Astrologers, passed away August 8, 2008. He had retired last winter. Bob was a polarizing figure in the astrological community. I worked with Bob and the AFA on perhaps 100 titles over the years.

Happy 1st Birthday to Us

In reviewing year #1 we found that when Grub Street Printing gets multiple estimates for you, the average savings between the two best quotes is $506. That’s a 14% savings for our publishers!

Thanks to all of the publishers who gave us a try (and saved some money).

What are you waiting for?

Grub Street Printing Newsletter #7 Sept. / Oct. 2008

Brand New –Acrobat 9

Acrobat 9 has just been released as part of Creative Suite 3.3. Best new feature? Acrobat 9 makes collaboration on documents easier, especially with the ability to access the new Acrobat.com, a free online service and library that allows file sharing and real time discussions with other users.

Orphan Works

In late September the Senate passed the Shawn Bentley Orphan Works Act of 2008 (S. 2913).

The bill deals with copyrighted works whose authors or copyright holders cannot be located.

Warehouse Cleaning

Whether it’s because of a new edition or declining sales, occasionally some titles need to be disposed of.

If remaindering isn’t practical, consider donating those books to the Books for Asia Program.

Program information is available at http://asiafoundation.org/program/overview/books-for-asia.

The books won’t compete with your other editions and you’ll get a tax break.

The Future of Print

Check out www.atdrupa.de to see videos of the newest print technology from Drupa, the world’s largest print show. Andrew Tribute’s analysis is worth watching twice.

Rainforest Blues

International Paper has announced plans to build a pulp/paper mill in Indonesia where the rainforest is disappearing at the rate of 7 million acres per year. Most of Indonesia’s timber is taken illegally.

Indonesia’s deforestation creates more emissions annually than all of the cars, planes, buses and trucks in the U.S. according to ForestEthics.org.

Printer Profit Squeeze

American printers continue to struggle with profitability in the transition to digital output. Profits declined 35% in the 12 months ending June 30, 2008.

In a Related Story

Quebecor World is being sued by a group of its suppliers for repaying $376 million of bank debt just days before its 2007 bankruptcy filing, leaving the vendors with a much smaller pie to share.

Despite its bankruptcy, Quebecor remains the second largest commercial printer in North America (behind RR Donnelley) with annual revenues exceeding $6 billion.

The top 13 North American “mega printers” saw revenues decline 6% since 1999 in spite of completing some blockbuster mergers and acquisitions (think Banta and Perry Judds). The mega printers control over 30% of the North American print market.

Grub Street Printing Newsletter #6 July / August 2008

Amazon vs. Ingram

The Lightning Source reps in Ingram’s booth at BEA were kept busy discussing its expanded ability to print full color books on demand.

Asked about Amazon’s new requirement that POD books offered by Amazon be produced only by Amazon’s POD producer BookSurge, a Lightning Source rep just smiled and said everything would be resolved in six months. He just wouldn’t say how.

Merge Out of Chapter 11?

American Color Graphics, an 80 year old printer with 14 locations will emerge from Chapter 11 proceedings by merging with Vertis, a print advertising supplier with 100 locations, also emerging from Chapter 11. (?)

Digital High Speed Ink Jet

Conventional wisdom held that toner based digital printing provided the fastest output speeds consistent with quality demands.

That truism may have run its course. Digital printer manufacturers like Xerox, Kodak, and Oce are introducing high-speed, full color, roll fed ink jet printers that use permanent inks.

While generally intended for direct mail and personalized billing applications, full color book production is also being offered. Kodak claims “offset quality” from its model.

High-speed ink jet printers for digital newspaper production were shown at Drupa 2008, the world’s largest print exhibit, in June.

Paperback Dreams

A new documentary film by Alex Beckstead entitled “Paperback Dreams” chronicles 50 years of two San Fransisco independent bookstores, Cody’s Books and Kepler’s Books. It debuts in November on PBS.

UAC 2008

Ray Merriman and his crew staged a terrific convention in Denver. The unity theme seems to have renewed dialogue that was suspended years ago. (And the book room was fantastic.)

Are You A Speaker?

Publishing Business Conference is accepting speaker proposals for its annual conference in New York next March.

There’s more information at http://www.publishingbusiness.com/speakerproposals.php

Update

Quebecor World has received bankruptcy court permission to find buyers for its facilities in eight European countries. The web site no longer displays a European presence.

Grub Street Printing Newsletter #5 May / June 2008

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Borders Watch

Unlike Yahoo’s rejection of the Microsoft buyout proposal, Borders Group has been blowing kisses at Barnes & Noble as a possible suitor for some months (if not years) now.

And while it seems that Barnes & Noble has finally noticed, the prospect of the Federal Trade Commission (FTC) blessing this union seems very unlikely.

Quebecor Update

Quebecor World continued to address its bankruptcy by closing plants in Lincoln, Neb., Magog, Quebec, North Haven, Conn., and downsizing its Islington plant in Etobicoke, Ont. so far this spring.

Quebecor common stock is trading around 20¢ C, down from its $40 C high in 2002 and $15 C just a year ago.

Amazon’s Rules

In March, Amazon.com announced that any print-on-demand (POD) book sold by Amazon must be printed by Amazon subsidiary Book Surge, a POD manufacturer.Publisher associations are outraged and BookLocker.com, a well known POD producer, is suing for restraint of trade.Affected publishers are encouraged to contact the Federal Trade Commission Commission to plead their case.

Coming Soon - FSC Paper

Everyone seems concerned about their business’ environmental footprint, which explains why book paper certified by the Forest Stewardship Council is gaining in popularity.

There are a number of factors and aspects involved in certification such as:

FM – FSC Management Certified company

FM/COC – FSC Forest Mgmt. And Chain-of-Custody certified company

COC – FSC Chain of Custody certified companies

FM/COC-NTFP – FSC non-timber forest product certified company

SS – Smart Step Certified company

CW – FSC Controlled Wood certified company

VER – Verification of Legal Origin, or Legal Compliance, or other Verification programs

SL – Smart Logging certified operations

Many printers are beginning to offer FSC certified text paper at no additional charge. FSC certified post consumer recycled book paper is in the works.

PDF Proofing

When you want to take a quick look at your PDF cover file, make sure you’re using Adobe Acrobat. Adobe Reader or other PDF programs may not render your cover properly.

Grub Street Printing Newsletter #4 March / April 2008

Whither Quebecor?

Quebecor World, North America’s second largest book printer ($678 M in 2006 book sales), which employs 58,000 in 16 countries, filed for bankruptcy protection in New York and Montreal in January and closed plants in Kingsport, Tenn., and Brookfield, Wis.

The ramifications are still roiling all parts of the industry, particularly suppliers who are owed hundreds of millions of dollars. Publishers, nervous about the outcome, have taken much of their work to other printers less likely to experience such disruption.

Quebecor World’s liquidation would turn the industry on its head and seems most unlikely. Nevertheless, when the largest printers can’t pay their bills you know that print margins remain razor thin and misreading the crystal ball can prove fatal.

u&lc Lives

One of my favorite reads used to be a magazine called u&lc (as in upper and lower case). It was, of course, intended for typographers and graphic artists, and I was (am) neither.

But the original and creative designs it showcased taught me that graphics and type aren’t two separate considerations to the designer. They exist as one to create effective, original design.

The good news is u&lc lives on at http://www.itcfonts.com/Ulc/4111/ .

Tell Them About It

Frustrated by automated answering systems with menu after menu of computer generated voice prompts? Try www.gethuman.com for the best ways to beat the prompts and talk to real live people at more than 500 companies.

Creative Co-Op Considered

Heather Buchanan Gueringer (Aquarius Press) and Nancy Feldbush (Moose Run Productions) are teaming up to explore the possibility of a Michigan-based publishers co-op initially to share marketing and mailing ideas and costs. Contact Heather at aquariuspress@sbcglobal.net for information about the April meeting.

God Bless the Independents

The news around Ann Arbor as I write this is that Borders Books is on the ropes and may be looking to be acquired, possibly by B&N.

Borders reports that it still returns around 25% of the books it orders and a number of publishers have told me that it is taking longer and longer to be paid.

On the bright side, independent bookstores seem to be making a comeback. Membership in the American Booksellers Association was down to just 1900 in 2002 but has recovered to 2209 in 2007.

If the decade-long loss of independent bookstores has finally bottomed out, it can only be a good thing for publishers and consumers.

Grub Street Printing Newsletter #3 Feb. 2008

POD vs. Digital Book Production

I’ve spoken with a number of publishers lately who assume that digital book production and Print-0n-Demand (POD) are one and the same.

Not exactly.

POD provides inventory-less book fulfillment by manufacturing only as many copies of a book as there are orders.

But books can also be made digitally in larger quantities for more traditional sales and distribution.

Run lengths that were not economical when printed on offset presses may be profitably produced digitally.

POD suppliers abound on the internet and, with one exception, offer very overpriced services to novice publishers.

GrubStreetPrinting works with a number of digital book printers that provide quick turnarounds and high quality books in print runs over 100 copies and can provide free assistance and information for digital production.

BEA - You Goin’?

Book Expo runs from May 29^th to June 1^st in Los Angeles.

I’d like to make sure I can spend some time with all of my friends who will be attending.

Please email me at wayne@grubstreetprinting.com if you plan on going.

Blogging

I’ve become addicted to the blogs posted at www.publishersweekly.com. I wonder if any of you currently blog about the book industry, graphic design, marketing, or ???

Our GrubStreetPrinting.com site will soon be linking to relevant blogs, especially those by our own talented group of publishers, authors and designers.

Let me know where I can find your blog and we’ ll try to get the link up as soon as possible.

Do you Skype?

If I’m at my computer I can be reached at GrubStreetPrinting.

Congratulations

…to Diana Dyer whose Swan Press (Ann Arbor, MI) has just completed it’s 11^th printing of A Dietitian’s Cancer Story. The first copies date back to 1997 when Diana folded and stapled them on her kitchen table. Learn more about Diana and her book at www.cancerRD.com or you can catch up to her via her blog at www.dianadyer.blogspot.com

…and to Bob Cooper who retired from his position as director of the American Federation of Astrologers. Astrologer/Author Kris Brandt Riske and crew will be restructuring the AFA to better serve its members in the 21^st Century. Check out the new website www.astrologers.com