A few months ago, the Council for Culture advised Minister Bussemaker to maintain the law on fixed book prices. And that while the functioning of the law has not been proven at all. For enterprising booksellers, this law is a liability.
This law earned erotic department store Christine le Duc a €15,000 fine. They devised a playful action: gift a pair of handcuffs with the purchase of the "50 shades of grey" trilogy. "Not allowed!" ruled the media commissioner's office. Giving this extra worth about a tenner as a gift with the book series would actually make the books cheaper. And that is against the law.
The Fixed Book Price Act was created to "promote wide availability and diverse supply of books". According to this law, books must be sold at the same price everywhere in the first year after publication.
The foundation of the law is the assumption that buyers actually buy their books where it is cheapest. Newsflash - every first-year marketing student knows that this is not automatically true. Price is just 1 of the factors influencing consumer choice.
For an example of this, you need look no further than the supermarket. The same pack of detergent costs a lot more at one supermarket than at another. And yet that pack of detergent is sold at both supermarkets. Why would it be different with books?
When choosing where people buy their stuff, more factors come into play. People are quite willing to pay more if there is convenience in return, or better service, or status. The challenge for retailers is to differentiate themselves in 1 of these areas and thereby attract customers.
The fact that bookshops are poor at this has been apparent for years. People choose en masse to make their purchases at internet bookshops like bol.com. Nice and easy. You don't have to go out. The very fact that book prices are fixed means that bookshops have no motivation to become more entrepreneurial. It prevents the much-needed innovation.
The fact that the book price fixing law does NOT apply to e-books "because it would harm innovation in the book market" actually says enough. Apparently, innovation for print books does not matter.
This makes E-books the very competitors of the printed book. After all; if consumers were to blindly go for the cheapest option then the printed book will suffer. E-books are cheaper to produce and are also not subject to price fixing.
The effectiveness of book price fixing has not been proven. In England, the law was abolished. There, book prices fell. But book sales rose by a much higher percentage. That is apparently insufficient reason to question the law.
Letting go of fixed prices will give bookshops more freedom and opportunities to decide how they want to raise their profile and attract the customers that suit them. As a retailer, do you choose to focus on competitive prices, for example by offering a discount if people buy more than four books? Or do you focus on convenience by serving your buyers via a website? Do you surprise your customers with an extra with their purchase like Christine le Duc did? Or are you that bookstore where atmosphere and service are paramount. Where readings and signing sessions are organised and where you can hang up a note as a reading club looking for new members?
The fixed book price deprives bookshops that provide something extra from charging an appropriate price for it. This puts too much emphasis on efficiency and cost saving and too little on service and innovation.
It is precisely the fixed book price that prevents bookshops from consciously choosing a signature and pricing to match.
What is your take on this law? Your response is welcome!
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