Fixed Price Scheme

“Without independent bookstores, there is effectively little market for Australian literature and no future for Australian writers.” – Richard Flanagan to Raymond Bonner in The Age/SMH 10 Feb 2024

Independent bookstores in this country are in crisis. According to a recent article by Raymond Bonner in The Age, 65% of indie bookstores closed between 2013 – 2023. The key reason? Big department chains and super high discounts. But a Fixed Book Price scheme may be the answer …

What is a Fixed Book Price Scheme?

A Fixed Book Price Scheme will restrict stores, such as large department and online stores, from selling newly released books at high discounts. This means stores like Big W and Target will need to wait a set period of time before they can sell books at 50% the RRP (Recommended Retail Price).

Why do we need one?

Between 2013 and 2023, 65% of independent bookstores in Australia were forced to permanently shut their doors, even though book sales are consistently on the rise. Big department stores sell books at very high discounts in order to draw in customers, and because they sell so many other types of products, they’re able to sell books at a loss. This has a devastating impact on independent book sellers, whose only or main product is books. They simply cannot match such heavy discounts.

The current system also has a negative impact on authors and illustrators, cutting into royalties and significantly lowering our earning capacity. Authors and illustrators in Australia make less than minimum wage, and the current system is neither fair not sustainable. A Fixed Book Price Scheme would increase our income and ensure there is a diverse range of books for consumers to choose from.

What’s in it for readers?

Readers will also benefit, as independent bookstores are more likely to stock a wider range of books, and not only what is commercially popular.

People are already struggling with the cost of living. Won’t this hurt consumers?

Discounts won’t be restricted forever, only for a set period, such as 6-18 months. Consumers will still be able to buy books at high discounts from department stores, just not brand new titles. Plus, readers can always borrow new releases from local libraries – including e-books – for no cost at all.

Authors, illustrators and booksellers are suffering from the current system. If we don’t make changes, the end result is that there will be fewer books to choose from. Titles will be restricted to mainstream, commercial books by a handful of authors.

How can we make it happen?

Right now we are aiming to engage with the government to commission research to build the case for a fixed price scheme. The more people who write to the government to request an inquiry, the more chance we have of success. There are two key people to contact:

Your local member of parliament (search for your member using the links below)
NSW Members
VIC Members
QLD Members
WA Members
SA Members
ACT Members
NT Members
TAS Members

and Tony Burke, Arts Minister (open his Contact form)

Below is a draft letter you can use. If this scheme will impact you personally, feel free to include details on how you would benefit.

I am requesting an inquiry into the introduction of a Fixed Book Price Scheme Big in Australia. Currently, big department stores are able to sell books at very high discounts upon a book’s release. This has a devastating impact on independent booksellers, who are not able to match such heavy discounts.

Please consider this important inquiry.

Where can I learn more?

You can read an excerpt of the original article from The Age below, or read the full article on Book People’s website here.