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Every day thousands of shoppers decide to buy a new book because Waterstone’s prominently displays or recommends it.
The reader may imagine that merit alone has inspired the country’s largest book chain to champion the volume now resting in their hands. The truth is a little less romantic.
In a confidential letter to publishers seen by The Times, Waterstone’s has set out what it expects them to pay if they want their books to be well promoted in its network of more than 300 stores this Christmas.
The most expensive package, available for only six books and designed to “maximise the potential of the biggest titles for Christmas”, costs £45,000 per title. The next category down offers prominent display spots at the front of each branch to about 45 new books for £25,000. Inclusion on the Paperbacks of the Year list costs up to £7,000 for each book, while an entry in Waterstone’s Gift Guide, with a book review, is a relative snip at £500.
To the despair of publishers, similar charges have become standard across the industry. The leading chains excuse them as a “contribution” towards marketing costs and recognition of a booksellers’ power to create bestsellers by heavily promoting select books.
At Borders, bookshop staff vote to decide the book of the month, while schools are polled to find the children’s book of the month. But the publishers still have to pay an undisclosed fee for the chosen book to be awarded the accolade.
A spokeswoman for W H Smith said: “Our premium promotion spaces are oversubscribed, which suggests that publishers feel they are getting value for money.”
Anthony Cheetham, the chairman of Quercus books, a small independent publisher, said: “It’s not a system you can opt out of. If Smith’s offer you one of these slots and you say no, their order doesn’t go down from 1,000 copies to 500 copies. It goes down to 20 copies.”
One of Quercus’s biggest successes is The Tenderness of Wolves by Stef Penney. It won the Costa Book of the Year award for 2006 but will not make the booksellers’ Christmas selections unless Quercus pays the going rate, Mr Cheetham said.
“The big chains will choose, say, 100 books of the year for Christmas but they will only put into their final selection the ones that are paid for.
“We are currently trying to decide whether we feel strong enough to say no and see what happens with that book if we don’t pay. It’s difficult, the only publisher who is in a strong position [to negotiate with booksellers on this] is Bloomsbury, the proud owners of H. Potter Esq.”
The imbalance is becoming more marked, with one supermarket proposing to start charging publishers just to pitch books at them.
“There is a genuine level of exasperation and anxiety in the publishing industry that the booksellers have gone too far down this road,” Mr Cheetham said. “It’s the reader who loses because it’s throttling the distribution of a wider range of high-quality books and [perpetuating] the system whereby you plaster the entire country with copies of the same few books.”
Neil Jewsbury, the commercial director of Waterstone’s, defended the charges and said that the quality of books chosen for books-of-the-year lists and other promotions was not compromised by money changing hands.
“Our expert booksellers, with years of experience, decide on what the best books of the last year are,” he said. “It’s only after that that we enter into a confidential commercial agreement with the publishers to decide how best to feature and promote these titles.”
But most customers are not aware of the practice. One leading figure in the publishing world said: “What the book stores are doing is what other trades do, whether it’s frocks or sun-cream. The problem and the difference here is that the customers don’t realise it. They think what they are seeing is a recommendation and have no idea that the retailer has taken good money from the publisher for it.”
At Waterstone’s flagship Piccadilly branch in Central London yesterday shoppers said they were appalled by the practice. Helen Brooks, 36, a television sales director and budding author, said: “It’s disgraceful, I certainly would not trust them or their lists. It doesn’t do a lot for home-grown talent, small publishers or writing independently.”
Peter Wheeler, 68, a pensioner, said: “It’s a con.”

What it costs
£45,000 For one book to appear in window and front-of-store displays, and in Waterstone’s national press and TV advertisement campaign
£25,000 To feature in a bay at front of store as a ‘gift book’ in its genre and be displayed at the till
£17,000 To be one of two titles promoted as the ‘offer of the week’ for one week in the run-up to Christmas
£7,000 To be displayed at front of store as a ‘paperback of the year’ and be mentioned in newspaper adverts.
£500 Price of an entry in Waterstone’s Christmas gift guide, complete with a bookseller review

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Oh dear!
And I, as a self publisher, have just asked W.H. Smith to stock my book (Mario) on a sale or return basis (payment on sale only) Looks like I should have saved the postage but re-mortgaged the house!
R.G. David, West Haddon, Northampton
So this is why so much talent goes unrecognised
Eric Beer , Harrogate, North Yorkshire
Is a bookshop not like any other business? It's there to make money, not to provide some education service for the masses.
In Waterstone's staff regularly post independent reviews on books they have read and enjoyed, and these sit pride of place in prominent positions.
However, if people need to be told what to read, the last of their worries should be how the book came about being "recommended". And if you don't want to buy a recommended book - DON'T!
Tom, Gravesend, Kent
If bookshops are presenting charts of recommended reads and aren't telling customers that publishers have to pay to have a book included, than that sounds like misrepresentation.
Tell the Trading Standards people.
Many people make a point of buying books from established stores rather than online because they want to support businesses that they feel are worthwhile. If they decide that these stores are conning them, and that goodwill disappears, then some of these big chains could lose a big part of their customer base very quickly. They are gambling with their reputations. I certainly won't buy from Waterstones again after reading this article.
Eric, London,
Like many others who've left comments on this heinous topic, I'm a new author with a small independent publisher with zero chances of ever having an expensive marketing machine shoving my books in book-buyers' faces. This is only half the story - the average reader has no idea of the difficulties involved in even getting one's books into Waterstone's in the first place. And forget about WH Smiths and supermarkets altogether. Waterstones demand that publishers have a consignment account with Gardners, the largest wholesaler in the country, before they'll stock a book. Gardners demand proof of sales (chicken and egg/Catch 22 or what?) before they'll agree to open an account, and then when they do, insist on discount of 57.5%!!!
Luckily my books are now in all Borders branches (also hard to get into) and about a third of Waterstone's. But it's taken six months of hard slog, constant e mails, letters and phone calls to achieve this. Independent bookshops are infinitely better!
Kit Berry, Reading,
This is horrendous and grossly unfair. Many authors struggle to eat as it is, without someone else taking yet another huge cut out of their books!
Fortunately I have been mostly reading friends' books published by smaller publishers and distributed more inventively for the last year or two. If booksellers keep this up, they will find that customers will begin voting with their feet against repetitive bland selections and buying more and more books online and through small independent booksellers.
Indeed on a more positive note this may well prove to be the salvation of the smaller independent bookseller if they can boast to stock what the larger ones won't unless extortionate sums are paid. Readers will begin seeking them out again just as real ale lovers tend to prefer the Freehouses selling better beer!
Laura King, Oxford,
I'm appalled and utterly disgusted to hear that this sort of blackmailing, for that's what it amounts too is allowed to happen. We as customers and the publishers should boycott these shops we would soon see a change when there profits took a dip.
A Atherton, Stoke-on-Trent, England
I think its disgusting what is happening, I always thought the best sellers on show in the book shop was the new books that had just come out, all as I can say that my favourite authors have more sense than to go along with the stores scheme. But it also explains why when I know a new book is going on sale, via the e-mail from the author themselves, its not diplayed on the book shelves.
Just typical greed on the many stores mentioned in the previous comments on this subject. I hope most people will boycott the stores mentioned.
muriel townsend, Banora point, N.S.W. Australia
Go to librairies !!!
Lo, Newcastle, UK
I think the practice is pernicious and wrong. Books should sell on their own merit, and not according to how much money has been spent to push them into the bestsellers. I am fed up with going into bookstores and seeing the same books, in vast numbers, everywhere; and it`s a myth that booksellers know which books are best. That is a matter of personal taste and judgement. It`s about time that the big publishing houses got together and said Enough! After all, without the books they publish, where would the bookstores be?
Bestselling author, London, U.K.
This article was brought to my attention by a very talented author called Anna Jacobs via her newsletter. I have had an arguement with ASDA over not stocking Anna's books and have been told that I am looking for cheap books. I have bought all of Anna's novels over the years mostly in hardback which are not cheap but are worth the money. I don't tend to buy recommended books as I would rather decided for myself what to read. I think it is a disgrace that shops can get away with this practise. As a carer for my disabled son I don't have a high income but books are my one release from the caring situation and many a night they have helped keep my sanity when He has been up all night playing games or watching dvd's i have to be with him but can escape into my world of books. How can we put an end to this practise who do we complain to I suggest we just boycott the stores named and let them see how discussed we are with this practise.
Lynne Mc Keag, POLBETH West lothian, Scotland
i think this practice of charging authors for displaying their books is rediculous. The Authors i read are brilliant enough to sell their books without store advertising....... the store should be making enough money on sales without charging authors for the priviledge!
Marian , Manchester, United kingdom
So Waterstone's say:
Our expert booksellers, with years of experience, decide on what the best books of the last year are, he said. Its only after that that we enter into a confidential commercial agreement with the publishers to decide how best to feature and promote these titles.
Hmm, sort of true but they neglect to add a very important sentence.
"If after selecting a book we cannot get the publisher to pay us a big marketing charge then we will deselect it."
Another Book Insider, London,
This is big business at it's dishonest worse. How can charging a publisher/author a fee for promoting their books as "best seller of the month" etc. be anything but against every principle of decent business practice. The reading public will also be losers in this money making game as the so called "best seller" will only be that because the public have been duped into believing that it is a particularly good read ,when in fact it is simply a case of that publisher being the highest bidder.
Waterstones & Smiths deserve all of what i thought of as" unfair competition" from the likes of Tesco and Asda
dave ingham, Newport, Gwent Wales
This system is working because publishers are cravenly going along with it. If all publishers said no - and we have now refused to pay more than 35% discount to the Gardners so goodness knows how small the discount Waterstones is getting. Nevertheless they still stock our books. When, due to their own incompetence, they did not have one of our books in over one Christmas - and it was a Bath best-seller that year in other bookshops - we left leaflets all over Waterstones advertising it. As fast as they cleared them up we put more in. The result was that they lost business - not just for not having our book, but because, having discovered independent bookshops, people bought their Christmas presents there. Many have now stayed loyal to those bookshops, having discovered that they are MUCH more efficient than Waterstones.
Kirsten Elliott, Bath, England
Re Diotima's comment that a friend sold 50,000 copies of a book on word of mouth alone. I find it unlikely that a publisher would print 50,000 copies of a book and then invest nothing in marketing. 'Word of mouth' may be important, but publishers' experience shows that a well-stocked, front of store title sells, otherwise they wouldn't be paying ridiculous promo figures to Waterstones. The article doesn't mention the extra high discounts that Waterstones is likely to demand for big promotions, pushing up the cost to the publisher (and author if they are on net receipts - i.e. a percentage of what the publisher is paid rather than a percentage of cover price).
KBNeale, Wales,
It is unbelievable the way the English language is threatened by booksellers and supermarkets. This country earns its money from intellectual property. What if someone overseas steps in to take British authors offshore who will loose? The British public subsist on what is earned in intellectual property. Most people go to work and produce literally nothing to export.
LOOKMAN, Charlwood, Surrey
This isn't news. Anyone on the inside's known about this - and worse - for ever. I can think of a few recent bestsellers that were truly dreadful books, just as I can think of a few box office movie successes that were dreadful films. A wise man once said that the difference between a hit and a miss is marketing.
It's simply the emperor's new clothes (a great story by the way) remade for the 21st century. If you're told something's worth reading, it must be. Mustn't it? God help the poor author: a recent media report cited an average 'salary' of £8k per annum. The book business is corrupt, self-serving and hypocritical. There. Now, I must go and win the lottery and write that novel...
Bookworm, london,
Compared to what Tesco et al charge for shelf space in their stores, publishers are getting off lightly.
By increasingly selling to and through supermarkets, publishers have encouraged the commoditisation of their products.
They are therefore not in a position to whine when book chains use the same tactics (albeit probably softer) than the supermarkets do, forcing producers to pay their marketing costs.
Andrew Whyte, Northwood, Shropshire
Re: Lesley's comment. The story isn't publicized more widely because the publishers are afraid that if they speak openly, the bookstores will refuse to carry their books.
Regarding the high fees quoted in the article, this practice applies all the way down the scale. Even the smaller "independent" bookstores demand "co-op" fees from publishers when an author is scheduled for a book-signing event, for example. And they often must sign exclusivity and confidentiality agreements.
Mark Jasmine, New York, United States
As a small publisher based in Nottingham we are not able to enter into these negotiations as we just don't have the funds for it but that doesn't mean we haven't got talented authors. We have just published a book in the North East, Waterstones can order through us via Gardeners but even though customers are going into the shops and requesting it, some branches won't even order it. We have more success with the author going round and selling it in pubs and fish and chips shops! It is proving very popular with the locals and they are increasing frustrated with stores like Waterstones who will not service their needs. It makes you question, are Waterstones selling books people want to read or are they just lining their own pockets?
Jayne Thompson, Nottingham, Nottinghamshire
I.m glad my favourite authors dont have to rely on Waterstones or W.H. Smith.How disgusting is that? I contact mine to ask when her next book is out, She cant write them fast enough for me. I agree with the comments above "Thank heavens for word of mouth" I also get a regular monthly newsletter from my favourite author. I will also join any campaign.
pat Ingham, Newport, Gwent Wales
The publishers have allowed it to happen - they have failed to invest in the independent sector and have instead chased telephone number sales levels via the supermarkets. Harry Potter is the crowning example of lunacy - Amazon have pre-sold 1 million copies at Zero profit. 20 years ago a book like Harry Potter would have created the profit for an independent to survive. However, sharp selling practices by Amazon & the supermarkets makes the bookseller look like a profiteering shark trying to sell the book at a reasonable price and a reasonable margin. As a bookseller, due to close the doors for the last time on 23rd June after 170 years of trading I feel very sad for our customers who enjoyed an independent choice but were lured away by the price and convenience provided by Amazon & the supermarkets. I wonder what the next 20 years will bring forth.
A Turnbull, Saffron Walden, Great Britain
As someone who has worked on both sides in the book world I can tell you that the situation is far worse and endemic than the article suggests. WH Smith's 'marketing charges' are £25,000 for a Read of the Week slot, £10,000 for a 'Great Price' slot and, on average, a publisher will pay £1 per copy for every hardback book sold in and 50 pence per copy for a paperback - there are very few new books going into WH Smith that are not paid for. Waterstone's 'Offer of the Week' typically attracts charges between £7500 - £10,000, plus huge discounts above their normal terms. Every month that a book is featured in their '3 for 2' promotion it carries the same charge to the publisher. Borders recently had to lower their marketing charges on their main promotions because they were too high for most publishers and the sales volumes Borders generates. All of these charges drop to the bottom line - they do not get passed onto customers. Oh, and Amazon is as bad as the rest.
Book Insider, London, UK
This is terrible, how can the book shops do this to authors? I think waterstones and wh smith are already over priced on their books, and to charge the publishers to "advertise" their books is disgusting. These shops would not be in business if people didnt write books and they are charging them for the "advertising" them.. I will join a campaign lead the way lesley!
Jan Orwin, Manchester, England
As a newly published author this is so disheartening. I am neither famous nor infamous, and my independent publisher cannot afford these huge amounts for publicity. My novels sell well abroad and thanks to my local Waterstone's and their enthusiastic staff it sells well locally.
There must be literally thousands of great books out there which nobody will take a chance with financially. At best, new authors can expect one copy (if they're lucky) on the back shelf behind the stacked and hyped, cash-backed big names.
What a waste of wonderful words!
Thank heavens for 'word of mouth' - our only hope!
Wendy K Harris, Ventnor, Isle of Wight UK
Why isn't this story pubicised more widely? Why don't the public know? I know, because I'm an author suffering under the system, and one of those likely to go under because my sales haven't been good enough. Let's start a campaign!
Lesley, Canterbuery, Kent
Jamie of Halifax seems to have forgotten all about moral agency; no one forces you to buy the heavily promoted book. Let me assure you that 'word of mouth' can be quite as sucessful as a window display. A friend sold 50,000 copies of his first book on word of mouth alone.
Diotima, London, UK
British Bookshops have no staff recommendations or prominent displays. They sell the same books at up to 50% cheaper. Presumably they make a profit. Perhaps Waterstones and others would like to justify their ridiculously high prices .
Roger Tilbury, Worthing,
Welcome to a society where capitalist tendencies have overcome our quality of life.
No longer is it about providing the best quality of life to each inhabitant, but selfishly earn the most at the expense of normal people, the customers.
I'm sick of this. First supermarkets fleecing out the smaller, hard working honest suppliers to those who have the biggest pockets and can afford to buy 'exclusive' spots.
There is such a thing as too much capitalism, and maybe its just me, but when the ordinary members of society don't even know who to trust because every business is out to make as much money regardless, then I would say capitalism has gone too far.
Jamie, Halifax, West Yorkshire, UK