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PGW Files for Bankruptcy!

Article published March 18, 2007

Don’t Buy the “Isolated Incident” BS Being Bandied About in the Industry!

Either we start looking at what’s wrong with the publishing industry that keeps taking down fine distribution companies in the US (and in Canada), or we’re doomed to keep repeating these failures. No, I don’t have any inside information and haven’t even bothered to read most of the news reports. Reality is that another fine company has bitten the dust.

I searched back in my newsletter archives and it was three years ago that the #1 Canadian distributor filed for bankruptcy, which prompted me to write about protecting yourself in your dealing with distributors. I also mentioned my personal opinion that, within five years, there would only be Ingram and Baker & Taylor type distributors left, if even these folks. I’m getting close.

It would take pages and pages to dissect the issues in the “business”, and even acknowledging new forms of publishing, methods of transmission, and parts and pieces of books available in a number of ways, free, the industry has some basic flaws. We all know pretty much what they are, of course, depending on where you sit in the stadium.

As most of you already know, I am a staunch believer in titles generating revenues APART from the distribution process - using distribution as a second level device to add to an already solid sales base. Unless you have the machine, the money, and the constant vigilance, distribution is about a break even proposition for most of us. And now, as we slowly watch the distirbution concept crumble, it is even more important to have other revenue sources as #1 on your list.

And don’t forget to review your agreements with all your distributors to protect yourself, yet again.

I’ll review the article about protecting yourself with distributors and provide some additional information and advice about alternatives to distribution.

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