'Specialist' service on out-of-print titles grows as reliance on distributors increases New print on demand (POD) services from two distributors have spotlighted the shifting role of wholesalers in the Christian retail world. Days after STL Distribution North America (STLD) unveiled its POD system offering overnight shipment on out-of-print titles, in March, Anchor Distributors announced a similar program, due to go into operation this month. The initiatives compete with the existing POD service offered by Spring Arbor (SA) through its parent company Ingram Content Group's Lightning Source division. The POD ventures are seen as providing a way to help Christian stores set themselves apart as category experts by being able to special-order titles beyond the best-sellers now carried in competing channels. And they follow a shift in business practices by many independent stores that are relying more on distributors for slimmed-down inventory. A recent Christian Retailing Vital Signs industry survey found many stores reducing the number of SKUs they carry, cutting their direct publisher orders and reducing shipment quantities, while using more frequent distributor deliveries to replenish their shelves. STLD handed out personalized editions of a book about the future of publishing to show off its fast-turnaround POD capabilities at a reception at the business' Elizabethton, Tenn., center. Guests were presented with a copy of a book detailing the new print-technology opportunities—including same-day shipping on orders received by
1 p.m.—which featured a photo of themselves snapped on their arrival. STLD President Glenn Bailey called the new service—a partnership with technology provider Snowfall Press and printer Dickinson Press—a game changer. "Our ability to virtually carry backlist, slow-selling, long-tail and out-of-print inventory—not just better-selling titles—will enable resellers to offer thousands of additional titles," he said. "Publishers will be able to grow their incremental revenue, end 'out of stock' books by immediately printing whatever is ordered, allow niche titles to be readily available and enable same-day turnaround of orders." Anchor Distributors' partnership with Bethany Press was scheduled to launch April 1, Anchor Vice President John Whitaker told Christian Retailing. As with STLD, the POD operation at Anchor's New Kensington, Pa., center will give stores access to out-of-print titles and provide low print-run opportunities for publishers. "The bottom line is that the books are available for ministry," he said. The POD moves also open up opportunities for self-published authors, custom publishing for churches and other groups, and will also allow distributors to reduce their physical inventory. POD can also benefit publishers, who are able to cut back on minimum regular print runs. Mark Kuyper, president and CEO of the Evangelical Christian Publishers Association, said that it was significant that all the major distributors were "really getting up to speed with what is developing digitally." While STLD and Anchor each houses one POD line, Lightning Source has multiple lines at four centers—in LaVergne, Tenn., and Allentown, Pa.—with a fifth due to launch in Australia in June. Lightning Source has produced more than 100 million books since 1998, though the company would not disclose how many of those were Christian—market titles. SA Director of Sales Chris Smith said that the business was "definitely seeing a trend toward stores keeping their inventory lean while relying on a just-in-time inventory management approach." SA had added 350 ship-to locations last year and was seeing an "overwhelmingly positive" response from stores to its expanded gift selection. "We have seen our retail partners rely more heavily on us in the past couple of years," said Smith, noting that retailers were reducing inventory and increasing turns, while also making backroom savings. "All of these factors are more critical in today's tough economic environment where both store staffing levels and inventory dollars are under pressure." STLD's Bailey noted that the overall size of individual orders had fallen in the last few years as stores slimmed their in-stock levels. He said that some stores were ordering more often, though—a trend observed also by Michael Turner, director of product acquisitions for New Day Christian Distributors. The company had seen significant growth in accounts since expanding its product offering beyond its well-known music catalog, notably with children's toys and games, Turner said. CD and DVD recordings of popular author Charles Stanley's In Touch ministry sermons were among recent additions, making them broadly available to Christian stores for the first time. George Thomsen, CBA chairman and director of the bookstore at Harvest Christian Fellowship in Riverside, Calif., advised retailers to be be aware of the reduced margin and greater freight costs associated with relying too heavily on distributors. In addition, in streamlining in-store inventory, there is the danger of lost sales if stores do not have the right product on the shelf when the customer wants it. "Stocking fewer copies of top-selling books can result in too many out-of-stock days on key titles," Thomsen said. There is also the danger of stores "becoming less attractive places ... if they have too little product and consumers walk away empty-handed. Time is a valuable commodity to a consumer, and they will not continue to patronize stores that repeatedly fail to meet their needs." Thomsen's concern was echoed by Kuyper. POD was perfect for special-ordering out of print titles, but "I don't think stores would want to hold back and allow titles to disappear from their store just because they know they can get them, special-ordered, because that's not going to satisfy the consumer very well." 
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