Perseus Books Group Perseus Books Group and Lightning Source Partner for a Constellation of New Services
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CASE STUDY PERSEUS BOOKS GROUP PERSEUS BOOKS GROUP AND LIGHTNING SOURCE PARTNER FOR A CONSTELLATION OF NEW SERVICES ABOUT PERSEUS BOOKS GROUP The Perseus Books Group is an independent company committed to enabling independent publishers to reach their potential. Perseus imprints include Basic Books, Running Press, Vanguard Press and Westview Press; in addition, the company provides sales, marketing and distribution services to more than 300 independent publishers. Print-on-Demand Pioneer finding a way to eliminate warehouse Member publisher PublicAffairs was The Perseus Books Group was an inventory and excess inventory fees, a beneficiary of this strategy as well. early adopter of the print-on-demand while at the same time streamlining Intense media interest in the title, model for book manufacturing. “We the ordering and distribution process. Scott McClellan’s What Happened: were issued the first Lightning “We evaluated all of our vendors,” Inside the Bush White House and Source customer number in the explains Serdinsky, “and decided to Washington’s Culture of Deception, late 1990s,” says Melissa Serdinsky, place a greater title set with Lightning created a spike in orders. Perseus Vice President, Boulder Ops & Source.” tapped Lightning Source to fill the Production Manufacturing, Perseus gap by producing thousands of copies Books Group. “We set up 50 titles Filling the Gap of the book using print on demand from our Westview Press imprint and By implementing print-on-demand pending a further offset run. “When let them ride. Orders were fulfilled strategies, Perseus has also been facing this kind of extraordinary with no involvement from us; we able to smoothly handle unpredictable demand, the key to success is speed simply received the checks. A new order cycles and capture sales when to market,” said Susan Weinberg, the management team came on board in interest in a book unexpectedly Publisher at PublicAffairs. “Lightning 2003, and that is when we started to spikes. “The Course Adoption process Source’s print-on-demand capability examine how print on demand could for educational materials is a good helped us reduce our turnaround time be utilized to better serve our own example,” says Serdinsky. “We have and ship more books to booksellers imprints and those of our publisher recently automated the process for as quickly as possible.” Serdinsky partners and customers.” managing course materials with a adds, “We had a similar situation with system that checks stocks every day George Soros’ book, The Paradigm for Perseus had also established an and orders when Financial Markets. internal print-on-demand facility in its necessary based “It takes just as much time Lightning Source’s Boulder facility in partnership with on predefined to cut a purchase order response was Xerox in 2000 to handle some of the criteria. Books in for 500 or 750 books as amazing with these production of short-run books. “As our warehouse that it does for 10,000. We hardcover jacketed our relationship with Lightning Source serve this segment have developed formulas books. Lightning began to grow,” adds Serdinsky, “we are stored in bins, to determine when it Source was churning ultimately closed that facility, finding it not on pallets. is more economical them out at the rate more efficient to outsource production Under normal to move to print on of 3,000 per day. I to a qualified partner such as Lightning circumstances, demand. That enables am mystified as to Source.” the system works us to take those titles how they managed flawlessly, but out of the hands of the it, but thrilled Solving a Business Problem receiving two or 14 different people who nonetheless.” Serdinsky points out that Perseus had three large orders might have been involved a subset of titles that consistently sold from our larger in the past, including A similar unexpected but did not involve a large number partners can affect the publisher, and allow surge in interest books to be manufactured of units. To meet demand for these the efficiency of our was created when to order. Once they are titles, the company manufactured an short-run algorithms. Venezuelan President in the system, our only economic order quantity of 1,200 to By setting up those Hugo Chavez involvement is to cash 1,500 units to be held in inventory titles with Lightning presented a copy the checks from Lightning Source, even if we of The Open Veins pending orders. “But some of these Source.” books were sitting in our distribution find ourselves in a of Latin America by temporary out-of- Eduardo Galeano warehouse for as much as three Melissa Serdinsky years,” she says, “accruing excess stock situation in Vice President to U.S. President inventory charges from our warehouse the warehouse due Boulder Ops & Production Barack Obama operator. We began producing some to large orders, an Manufacturing during a meeting at of these in our internal facility which automatic order Perseus Books Group the Summit of the allowed us to keep short discount can be placed with Americas. “While that titles, which carry a better margin, in Lightning Source for particular book was print. While this worked fairly well for immediate production and delivery. not published by one of our imprints,” us, we were still losing sales because This is much more efficient than says Serdinsky, “the author’s next it was a two-step ordering process and trying to print them on our own, and it book is. We have already placed that many customers just didn’t take that delivers exceptional speed to market title with Lightning Source so we can next second step.” Perseus set about for everyone.” be prepared for a spike in interest should it come, and not have to worry smaller publishers may only have 25 or she says. “Our title set has doubled that our initial offset run is inadequate. 30 titles in their list,” says Serdinsky. since 2004, and I have been able to Throughout our list, we are identifying “They have historically not been able work effectively without increasing my titles that can and should be preloaded to take advantage of digital strategies, staffing level. That is huge.” into the Lightning Source digital library such as ebooks and print on demand. as they come into print so we are fully Constellation levels the playing field Among other things, according to prepared when things pop.” Serdinsky for independent publishers and makes Serdinsky, this strategy has improved also believes that all paperback books it possible for them to generate new the effectiveness of reprint meetings. should automatically be added to the revenues from long tail content. It also “I am delighted when they come out Lightning Source digital library. “That allows them to produce books without of a reprint meeting that considered way,” she explains, “we can flip the tying up cash flow in years’ worth 60 titles and the decision was made ‘print-on-demand’ switch at any time of inventory. It means that smaller to move 20 to print on demand. Who during the book’s life cycle.” publishers do not need to spend their wants to spend the time sitting in a time negotiating with printers and reprint meeting to decide whether to The Results manually distributing books.” print 1,500 books to cover three years’ Today, Perseus has about 3,200 titles worth of potential demand? No one with Lightning Source, a number that “Perseus’ business strategies, needs to waste their time on that!” Serdinksy reports is continuing to including its Constellation program, climb. “We are preparing 400 more are a classic example of how digital titles for submission as we speak,” technologies are allowing publishers to she says. “Certain of our sales simply reinvent their business models,” said wouldn’t have happened without David Taylor, Senior Vice President, Lightning Source and the print-on- Content Acquisition, Ingram Content demand program.” Group and President, Lightning Source. “We are delighted to be This relationship has also allowed partnering with such a forward-looking Perseus to launch a new program for company and excited about the its publisher partners. Constellation, possibilities enabled by our partnership launched in September of 2008, in the future.” Serdinsky’s advice to other publishers? “If you have not implemented a print-on-demand model, you are missing the boat. We definitely have a print-on-demand strategy, and Lightning Source is a huge part of it. If they get the order, the book always ships and is of the highest quality; you can count on it. I am amazed at how many years we have been doing this and how few customer complaints I have had from the imprint, the book seller or the author.” Melissa Serdinsky Vice President Boulder Ops & Production Manufacturing Perseus Books Group was the first “one-stop shop” digital While Serdinsky and Perseus are offering to harness the power of best extremely happy with the additional in breed players across the digital revenue enabled by print-on-demand, spectrum on behalf of independent Serdinsky also points out that there publishers. Lightning Source is a print- are significant cost savings as well, on-demand partner in the Constellation generating improvement in the overall program. Constellation empowers profit picture for Perseus. “The cost independent publishers to exploit the savings go well beyond the elimination sales and marketing opportunities of inventory costs. We support six created by the rapid developments imprints, three distribution lines and of digital technology. “Many of these Constellation out of Central Services,” lightningsource.com Lightning Source LLC, an Ingram Content Group company Lightning Source UK Ltd. Registered in England and Wales Company number 4042196 Registered office 5 New Street Square, London, EC4A 3TW .