During the early part of 1990, the actions of some book
publishers caused the members of the AWBA to become concerned about
the relationship between publishers and wholesalers in the book industry.
The AWBA believes that the wholesaler has a vital role to play in
the sale of books to the ultimate consumer. However, recent actions
by some publishers threaten to disrupt the historically efficient
channels of distribution. The following issues have been considered
by the Association and our current position follows:
TERMS
Discount schedules provided by publishers should provide
a sufficient spread between wholesale and retail schedules to allow
wholesalers to provide traditional wholesale services to the market.
ORDERING SYSTEMS
Industry-wide ordering systems (electronic, mail, etc.)
should not be designed to exclude wholesalers. Bookstores should have
the option, when using industry-wide ordering systems, to place orders
either with a publisher or wholesaler depending on the store's need.
Wholesalers, as customers of publishers, should not be excluded from
placing orders with publishers via industry-wide ordering systems.
FREIGHT
Publishers must recognize that wholesalers provide the function
of reducing freight costs for both retailers and publishers and develop
their policies accordingly.
RETURNS
All segments of the book industry; publishers, wholesalers,
and booksellers must begin to work as a team to resolve the industry-wide
returns problem.
COOPERATION
For the industry to continue to grow, publishers and wholesalers
must begin to address the issues of ordering, freight and returns
to maximize efficiencies at all levels of the book industry.
RETAILERS -- WHY USE A WHOLESALER?
Single Source: The ability to purchase thousands of
different titles from various publishers. Wholesalers often stock
books which you may not be aware of (specialized, regional or small
press titles).
One Stop Shopping: A wholesaler allows you to consolidate
your orders, maximize your discount and minimize your handling and
freight. One order, one package and one invoice.
Competitive Discounts: Wholesale discounts are often
as competitive as direct purchasing. Avoid the headache of saving
orders until you meet the discount requirements, thereby losing sales
while titles are out of stock.
Fast Turn and Order Processing: Wholesalers process
orders immediately, allowing you to increase your inventory turn by
making the wholesaler your ``stock room.'' Also, one source can eliminate
needless back-order problems.
Fewer Returns: Purchasing more regularly can increase
your sell-through and tie-up fewer dollars in unnecessary inventory.
Also returns are simplified -- one document, one shipment, one credit
memo.
Quick Delivery: Since wholesalers are often faster
than publishers, you can significantly reduce your delivery time and
improve your profit margin. You can depend on wholesalers to keep
you in stock.
Lower Freight Costs: Consolidation of orders into
one shipment from one source reduces freight charges.
Easy Ordering: Many wholesalers have toll-free lines,
immediate stock verification, electronic ordering systems, knowledgeable
personnel and an array of customer-oriented programs.
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GENERAL RULES OF ANTITRUST COMPLIANCE
The following rules are applicable to all American Wholesale Booksellers
Association ("AWBA") activities and must be observed in all situations
and under all circumstances, without exception or qualification other
than as noted below.
- Neither the AWBA nor any committee, conference or activity of the
AWBA shall be used for the purpose of bringing about, or attempting
to bring about, any understanding or agreement, whether written or
oral, formal or informal, expressed or implied, among competitors
with regard to prices, terms, or conditions of sale, discounts, distribution,
volume of sales, territories or customers.
- No AWBA activity or communication shall include discussion of or
action concerning prices or pricing methods, quotas or other limitations
on sales, or involve allocation of territories or markets or customers
in any way.
- No AWBA committee shall undertake any activity which involves exchange
or collection and dissemination among competitors of any information
regarding prices, pricing methods, cost, or of sales or distribution
or individual company statistics of any kind, without first obtaining
the advice of legal counsel, provided by the Association, as to those
proper and lawful methods by which these activities may be pursued.
- No AWBA activity or communication shall include any discussion
or action which might be construed as an attempt to prevent any person
or business entity from gaining access to any market or to any customer
for goods or services, or to prevent or boycott any business entity
from obtaining a supply of goods or otherwise purchasing goods or
services freely in the market.
- No AWBA activity or communication shall include any discussion
or action which might be construed as an agreement or understanding
to refrain from purchasing any goods, materials, equipment, services
or other supplies from any supplier.
- Neither the AWBA nor any committee thereof, shall make any effort
to bring about the standardization of any product or method of manufacture
or certification of any product or program for the purpose of preventing
the manufacture or sale of any product not conforming to a specified
standard or which would tend to have the overall effect of either
lessening competition or resulting in a degree of price stabilization.
- No person or company shall be unreasonably excluded from AWBA membership
or participation in any AWBA activity where such exclusion may impair
such person's or company's ability to compete effectively in the book
distribution industry.
- In conducting AWBA meetings, the presiding officer thereof shall
prepare and follow a formal agenda. Minutes of each meeting shall
be distributed to all persons who attended such meetings. Approval
of the minutes shall be obtained at the next meeting. Copies of the
minutes shall be transmitted to the officers.
- Association speakers and authors shall be informed of the need
to comply with the Association's antitrust policy in the preparation
and presentation of their papers.
- In informal or social discussions at the site of an AWBA meeting,
which are beyond the control of its officers, all representatives
are expected to observe the same standards of personal conduct required
of the Association in its compliance with these antitrust guidelines.
In addition, a copy of these General Rules of Antitrust Compliance
will be included in the AWBA Membership Directory.
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Terms