Tips for Managing Cash Flow in a Crisis

As independent booksellers navigate the COVID-19 crisis, here are some ideas for managing cash flow in a time when sales — whether in-person or online — may be inconsistent.

Communicate:

• Talk to everyone you owe money to and ask for extensions and/or relief
• Re-negotiate everything
• Ask for help — free ads from regular media vendors, for example

General changes:

• Lower your thermostat to save on heating (or raise it to save on cooling)
• Organize and clean your store so you can get rid of paid offsite storage
• Use payroll service hotlines, chamber of commerce human resources hotlines, or talk with customers/lawyers for free legal advice
• Enroll in the FedEx Rewards program so you can earn gift cards that can be cashed out

Keep selling if possible:

• Promote your e-commerce site
• Offer free or inexpensive shipping, home delivery, or curbside pickup to encourage shopping on your site
• If you don’t have an e-commerce site, sign up for ABA’s IndieLite e-commerce platform for free through May 31 and be up and running within a few days
• Sign up as an affiliate and sell through Bookshop

Work with your publishers:

• Call your publishing sales reps and ask for help, whether it’s for extended dating, a billing grace period, or the removal of a return cap. Publishers may be able to help on a case-by-case basis
• See specific help that some publishers and wholesalers are offering here
• Notify your publisher sales reps if your store is closed and not accepting inventory
• Set up accounts with two wholesalers to ensure you have contingency plans in place

Calls to make:

• Ask your landlord for rent relief or see if you can refinance your mortgage
• Ask your phone company for a better rate
• Cancel your fax line or other unused communication systems
• Cancel your 800 number
• Ask for a reduction in dues from local or national memberships
• Modify your insurance plan (whether property, liability, or other) for lower monthly pay and higher deductibles

Consider credit cards:

• Pay by credit card and get cash back
• Ask your vendor to waive annual fees
• Maximize cash discounts from vendors
• Reset CAM base year to year with high expense
• Shop your credit card processing company; in this highly competitive market, you may find someone less expensive or be able to leverage another offer to improve your rates with your current provider

Eliminate some services:

• Free gift wrap
• Bags
• Print newsletters
• Print advertising

Visit the COVID-19 Bookseller-to-Bookseller Forum on BookWeb to share tips with other booksellers.