Distribution: So Many Books, So Many Choices

With several major publishers—led by Random House—reentering the distribution business and the launch of several new companies—including Ingram Publisher Services—publishers looking for a distributor have more choices than ever.

But despite the new competition from well-financed rivals, independent distributors say they still turn away many more clients than they accept, as the proliferation of small publishers increases demand for their services.

Mark Suchomel, president of Independent Publishers Group estimates that IPG takes on only about 2% of the publishers who approach the company, while Midpoint Trade Books president Eric Kampmann says that even though his firm is looking to expand, Midpoint still accepts only about 10% of the publishers it reviews. "We want publishers that can be successful at big accounts such as the bookstore chains," Kampmann says. Publishers Group West head Rich Freese also says his company accepts relatively few new publishers each year. "We are looking for publishers that we feel are underleveraged in the market," Freese says. National Book Network president Jed Lyons adds that while he's not looking to grow beyond his current roster of 90 clients, he will add publishers that have the potential to break out in the market.

While they say they can be choosy, distributors also know they have to work to attract and keep desirable clients. Niche-oriented distributors like D.A.P. (art) and Diamond Book (pop culture) distinguish themselves by specializing in certain markets. Distributors are also looking for ways to tap into new retail channels. "It's a tough marketplace. You've got to look every place you can to sell books," Steve Black, head of client services for CDS, says. "The trade market is solid, but pretty unexciting," agrees Freese. "The big growth in the business is coming from alternative markets."

Each independent distributor offers a different mix of strengths and services. And with many having decades of experience, they may even be able to teach something to the publisher-owned newcomers to the game.