Speaking of Chain Stores

[rolanni]

...this is kinda interesting, and actually Explains Something that had been bugging me for a while, now. Short form, Jasmine-Jade Enterprises, which is the company behind Ellora's Cave, is suing Borders for "churning" -- i.e. ordering more books than they reasonably expect to sell in the hopes of making Big Bucks on the returns.

Indie Publisher Suing Borders for $1,000,000

Comments

[kalimeg.livejournal.com]

I was a bookseller for 13 years. I wasn't ever happy with returns methods chains use. The "strip list" was my least favorite thing.

[moon-happy.livejournal.com]

It would be interesting to learn how Ellora's applied the $$ of Border's returns to make this "profitable." Returning and re-ordering is a nightmare accounting practice for everyone involved. The companies justify it for product that don't sell through quickly as the "only way" to maintain a reasonable cash flow and stay current on their bills. Crazy but effective. Splitting the profit on restocking fees? A new low. I bet it goes lower!