The decision by Scholastic to sell Harry Potter and the Order of the Phoenix through the publisher's book fair division has angered booksellers and is raising questions about the relationship between publisher and retailer. As booksellers of all sizes prepare their plans to nab buyers for the new book, Scholastic has launched a program that pre-sells it at fairs and makes the book available for pick up from 8 a.m. to 3 p.m. at one of 76 warehouse locations on Saturday, June 21, the book's official pub date.
The company is selling the book for the full $29.99 retail price, but it is offering other inducements to lure customers. These include a Potter baseball cap, an official certificate of purchase and the knowledge that money is going to a good cause (as with all Scholastic book fairs, schools earn a percentage of the proceeds, as much as 30% in some states). By contrast, a customer who orders the book in advance via Amazon—the largest outlet for pre-orders—will pay $12 less, but will get none of these benefits and most likely will not receive the book until after the weekend.
Independents have reacted with comments that range from mild annoyance to outright disgust. "I just found it interesting that the company wants us to order lots of copies of this book and is in the back door trying to get our customers. It just doesn't feel right," said Linda Ronberg, co-owner of Linden Tree Children's Recordings and Books in Los Altos, Calif. Many are concerned not only about losing sales; they worry that their investment in Potter events could go for naught. "I find this appalling," said Cissy Greenbaum, owner of Westwinds Bookshop in Duxbury, Mass., who is planning to have Hagrid roar up to her store on his motorcycle at midnight. "They, in essence, are undermining the sales of everyone: independents, big boxes and distributors." Booksellers said they are particularly concerned about a party that Scholastic is holding at its warehouses for those who ordered the book, an event they see as competing with their own.
The actions so upset the ABA that CEO Avin Domnitz sent a letter to Scholastic senior v-p Michael Jacobs strongly registering the group's unhappiness. "This is simply beyond the pale. It is a shortsighted act of ill will," he wrote in the letter, calling the move "an assault on [Scholastic] customers." Domnitz asked the company to reconsider its decision: "I can tell you that many booksellers feel duped." Barnes & Noble, another party likely to be affected by Scholastic's move, declined to comment.
Although this is the first time that Scholastic Book Fairs have pre-sold a Harry Potter title, brand management director Stacy Sparrow, who has managed the Potter line for the past three years, said the move is beneficial to several parties and should not be a cause for retailer concern. "It's a way for the schools to make money in these economic times," Sparrow said, noting that it was the schools that had approached Scholastic. The division and the thousands of fairs it oversees are run separately from Scholastic's trade unit. The company estimates that 1%—2% of the 6.8 million—copy first printing will be sold through the fairs.
While the stores may be disturbed by the latest program, the benefit to Scholastic is clear: the company takes home a larger percentage of revenue than it would through retailer sales. At a time when the company's book fair division—and its stock—have been going through a difficult time, it's easy to see the program's appeal.
Sparrow said that booksellers have no reason to be worried, as there are more than enough riches to go around. This should be a "a great moment for booksellers, consumers and Scholastic," she said. To help drive customers into stores, Scholastic has planned a $500,000 retail marketing campaign that will include event kits, giveaways and in-store signage.
