Blustering Over Barcodes
By: Kurt AmackerDate: Wednesday, October 03, 2007
Greetings, Maniacs, and welcome to another exciting adventure into the dark soul of American comic books! This week, I’ll expound upon a recent and controversial announcement by Diamond Comic Distributors. For those of you that may not know, retailers order their comic books from Diamond, usually on a non-returnable basis. They buy the comics for a discount on the cover price and sell them to you, profiting by the difference between their price and the cover price. Diamond has generated controversy in recent years for a number of business practices deemed harsh by fans, retailers, and publishers. In 1997, the Department of Justice began an antitrust investigation into Diamond. At that point, Marvel had returned to the distributor after its aborted attempt to distribute its own material via a distributor called Heroes World. In 1996, Capital City – the other major comics distributor in the United States – sold its assets to Diamond after the company acquired enough exclusive contracts with publishers to dominate the market. The antitrust investigation ended in 2000, with Diamond found innocent of monopolizing the distribution arm of the industry. Since then, Diamond’s competitors in the direct market have slowly disappeared. FM International shut down last year and the guys at Cold Cut have placed their company up for sale. Only Last Gasp remains. Diamond may not have a legal, honest-to-god monopoly on the direct market distribution – that is, directly to comic shops – but they are, for all intents and purposes, the only game in town for retailers that want to carry mainstream comics.
In 2005, Diamond upset droves of independent publishers by raising its sales minimums from $2,500 in retail sales per issue – at a cost of $1,000 to the distributor – to $4,000, at a cost of $1,600 to the distributor. Preorders had to reach $1,500 in actual retail orders, at a cost of $600 to Diamond, or the order would be cancelled. The distributor assured everyone that they would remain flexible on the rules. I’m not sure if that’s the case, but if any independent publishers would like to inform me, feel free to email me at comicscape@mania.com. Regardless, Diamond has made things a bit more complicated for independent publishers by mandating that by January of 2008, all comics must carry a UPC and barcode. Needless to say, many independent publishers will not care for this at all. But, as well you’ve come to expect from Comicscape, I’ll explore both sides of the issue in my usual fair-yet-still-somehow-inflammatory manner.
The idea of requiring comics to carry a barcode unto itself hardly presents a problem. Any publisher can use a barcode generating program, purchase ten ISBN numbers from Bowker for $275 (a $245 processing fee and $30 for ten numbers), and tell the barcode program to encode them (or any other number) into that set of black bars you see on everything you buy. You can get a free ISSN code for serials and periodicals from the Library of Congress, as well. A barcode can represent any number. You can make one up, if you want. That code contains only the number generated by the program, not the item name or its price. That information comes from the retailer, who tracks each product internally in relationship to the number.
Diamond complicates things slightly by requiring publishers to place actual, honest-to-God UPC numbers on their products. A single company generates unique, unused UPC numbers – GS1. Other than a handful of resellers that offer recycled, single UPC numbers, GS1 remains the only game in town. To obtain a UPC number, you have to register your company with GS1 for $750. After that, you pay $150 a year for 100 unique UPC’s. You have to pay more for another package of numbers after you use those. Then, you can use GS1’s software to generate a barcode that relays the UPC, or you can use any number of other programs. Here’s the kicker: GS1 doesn’t even track what products you label with your newly purchased UPC numbers. The company only ensures that each UPC issued remains unique to all of the other ones it has issued. You could, inadvisably, make up your own or use one from another item. The individual retailer, not GS1, tracks each number in relation to a particular product. But, if a retailer elected to carry your product bearing a duplicated UPC, they might find two products with the same number in their system. When the cashier scans it, your comic might ring up as a t-shirt or an action figure.
Nothing requires a publisher to purchase a GS1 membership and a batch of UPC numbers, but nothing requires a movie studio to submit their films for rating, either. Like the Motion Picture Association of America (MPAA), which rates movies, GS1 has become the industry standard. Everyone uses their numbers and, thus, no two products have the same numbers. You can buy a recycled number from www.buyabarcode.com or www.upcexpress.com, but you have no guarantee that they haven’t sold the number to someone else. Theoretically, if two comic publishers both bought two recycled UPC’s from the same site and their comics appeared in the same store, it might confuse the store’s inventory.
I don’t have much of a problem with Diamond asking for unique identifying numbers on comic books and graphic novels. But, I do have a small problem with the company effectively referring everyone to GS1. GS1 almost has a monopoly over the business of distributing unique serial numbers. Its selling points remain its status as the industry standard and its guarantee of issuing only unique numbers. But, any publisher can get a unique number via an ISBN or an ISSN for far less than the cost of dealing with GS1. Having a UPC number and a barcode might help you get your comic in a store that actually scans its product, but I’ve yet to see a comic shop that uses a scanner. Most just enter the price in the register without an electronic inventory tied to UPC’s. I am quite sure that some do, but I’ve seen none in my personal experience. Hence, it remains an added cost for small publishers that already have very few avenues for national distribution outside of Diamond.
Let’s not sound the alarm too loudly, though. First of all, anyone with the resources to publish comics should be able to come up with another $900 and then $150 every year thereafter for 100 UPC numbers. Of course, when you run out of those numbers, you have to upgrade and buy a larger package, but that’s another story. That sounds harsh, but creating and publishing comics is incredibly expensive. A childhood dream won’t simply shoo away the thousands of dollars required to run a small business, particularly one as unprofitable as comics. As Jennifer de Guzman of Slave Labor Graphics commented in the blog section of Publisher’s Weekly’s website, if you regard comic publishing as a hobby, you deserve no sympathy. It’s a business like any other. Running a business means having the capital and conforming to industry standards. I spoke to Marc Moorash of Seraphemera Books, a personal friend and publisher of Polyglot & Spleen, which carries both an ISBN and a UPC. He objected less to Diamond asking for a barcode of some sort than he did their practically forcing publishers to deal with GS1. But, at the same time, he acknowledged the respectability a UPC and bar code lent his comic to retailers.
I should also note that Diamond intends to market a Point of Sale system to retailers sometime in 2008, which will contain the UPC numbers for all of the comics ordered through their Previews catalog. That will make ordering and tracking orders more convenient for Diamond and the retailers that purchase the software. To any shop owner that just punches in the price of a comic into a cash register, it won’t mean much. But, Diamond wants to sell their Point of Sale system to retailers. Assuming enough stores actually use the system, any comic without a UPC could present a small problem for both retailers and Diamond – more the latter than the former, I should add. According to the letter sent to vendors, Diamond will charge anyone that sends their comics for distribution without UPC’s “$150.00 per sku/per shipment processing fee, as well as an additional $.20 per piece fee to cover expenses associated with creating, printing and stickering each piece for distribution (both fees subject to future increases).” In other words, they will not budge on this one. You deal with GS1 or a company that sells recycled barcodes, or you don’t distribute through Diamond. Graphic novels will still require an ISBN, by the way, so factor that cost in.
All this wouldn’t bother me so much if Diamond didn’t have a near-monopoly on the direct market distribution of comics. If small publishers had more alternatives, I could say “If you don’t like Diamond, don’t deal with them. Find another distributor.” But, small publishers have fewer and fewer options as readers flock to event-driven superhero books published by DC and Marvel. Small press books have seen a huge decline in sales after their brief heyday following the 1990s bust. Any small publisher now has to decide if the added cost of dealing with GS1 and Diamond is worth the exposure, particularly given the distributor’s increasingly stringent sales requirements. I understand that Diamond is a business. If there were more alternatives, I’d tell any publisher that doesn’t want to deal with Diamond to suck it up and find another distributor. But with few alternatives outside of Last Gasp, Cold Cut (one hopes), web comics, or direct sales to individual retailers, small publishers may find themselves in an either-or situation – either they conform to Diamond’s increasingly harsh standards or they don’t distribute comics to the direct market.
I’d like to thank The Comics Journal, Comics Buyer’s Guide, Scott King, Jennifer de Guzman of Slave Labor Graphics, and Marc Moorash of Seraphemera Books for the information and articles used in this week’s Comicscape.
The Spinner Rack
By Ben Johnson and Kurt Amacker
Ben: Every Wednesday should be an international holiday.
DARK HORSE COMICS
Aliens Vs Predator Omnibus Vol 2 TP $24.95
Ben: I feel like a little bit of the kid in me dies every time I read something I loved when I was in middle school only to find out that it sucks.
Kurt: I’m glad I’m not the only one.
Bettie Page Rules TP $22.95
Brad Pitt: The first rule of Bettie Page is you do not talk about Bettie Page….
Kurt: Dude, I talk about her all the time.
Buffy The Vampire Slayer #7 $2.99
Ben: So far the Whedon arc is looking paltry next to the work BKV is bringing in.
Kurt: I haven’t read this, but my wife has. I’ll consult her on the Whedon vs. BKV debate.
Conan #44 (MR) $2.99
Conan The Phenomenon HC $29.95
Ben: Conan and the Kroms break into Pop boy band business.
Kurt: Then, he slaughters all of the other bands and rules the recording industry at the tip of his sword. Then, only power metal will remain.
Empowered Vol 2 TP $14.95
Ghost In The Shell 1.5 Human Error Processor TP $17.95
Ben: That’s a job that would keep one very busy.
Harvey Comics Classics Vol 2 Richie Rich TP $19.95
Kurosagi Corpse Delivery Service Vol 4 TP $10.95
Lobster Johnson The Iron Prometheus #2 (Of 5) $2.99
Old Boy Vol 8 TP (MR) $12.95
Outer Orbit TP $12.95
Samurai Heaven & Earth Vol 2 TP $14.95
Ben: This is my zen.
Sock Monkey Inches Incident TP $9.95
Ben: The Red Hot Chili Peppers break out their infamous costume.
Kurt:Had to remind me, didn’t you?
Star Wars Episode II Attack Of Clones Photo Comic TP $9.95
Ben: A comic made up of photos and word balloons containing text from the screenplay. Talk about mailing it in.
Kurt: I was just thinking about what a blatant cash-in this was. It is so monumentally inessential that my mind wanders to it when I’m driving.
DC COMICS
Action Comics #856 $2.99
Kurt: This is the second part of Bizarro World, by Richard Donner and Geoff Johns, with art by Eric Powell.
All New Atom #16 $2.99
Ben: Destined to soon join New Coke.
Batman Chronicles Vol 4 TP $14.99
Booster Gold 2nd Ptg #1 $3.50
Countdown 30 $2.99
Ben: If you can’t say anything nice…
Countdown Search For Ray Palmer Crime Society #1 $2.99
Deadman #13 (MR) $2.99
Detective Comics #837 $2.99
Kurt: Paul Dini returns, thankfully.
Exterminators Vol 3 Lies Of Our Fathers TP (MR) $14.99
Faker #4 (Of 6) (MR) $2.99
Ben: My wife says this one is about her. I don’t get it.
Kurt: Really? She totally asked me to call her Screamer. I didn’t get it either.
Green Lantern Corps #16 $2.99
Ben: Completely awesome story. If you’re not reading Green lantern you’re probably a former Marine, current Goth DJ who wears black.
Kurt: Dude, that guy sounds awesome! Is it someone we know?
Helmet Of Fate TP $14.99
Infinity Inc #2 $2.99
Jack Of Fables #15 (MR) $2.99
JLA Hitman #2 (Of 2) $3.99
Jonah Hex #24 $2.99
Justice League Of America 2nd Ptg #12 $3.50
Looney Tunes #155 $2.25
Metal Men #3 (Of 8) $2.99
Metamorpho Year One #1 (Of 6) $2.99
Ben: Whatever it is will be retconned by this time next year.
Midnighter #12 $2.99
Nightwing #137 $2.99
Question Zen And Violence Vol 1 TP $19.99
Scalped #10 (MR) $2.99
Ben: Holy crap, this is a good book.
Supergirl #22 $2.99
Ben: Holy crap, this isn’t.
Tales Of The Sinestro Corps Cyborg Superman #1 $2.99
Vinyl Underground #1 (MR) $2.99
Welcome To Tranquility #11 $2.99
Wetworks Vol 1 TP $14.99
IMAGE COMICS
Bomb Queen Iv #2 (Of 4) (MR) $3.50
Ben: It takes a special something to make boobs and bombs boring.
Kurt: You make it sound like some direct-to-video flick with Julie Strain from 1992 or something.
Parade With Fireworks #2 (Of 2) $3.50
Kurt: Well, I should hope so.
Paul Jenkins Super Summer Sidekick Spectacular #2 (Of 2) (MR) $3.50
Strange Girl #18 $4.99
Weapon #4 (Of 4) $2.99
MARVEL COMICS
Anita Blake VH GP HC Vol 1 2nd Ptg Anita Var $19.99
Kurt: The first volume is on the floor of my bedroom, waiting for my wife to finish reading it.
Anita Blake VH GP HC Vol 1 2nd Ptg Jean Var $19.99
Annihilation Book 1 TP $24.99
Blade Sins Of Father TP $14.99
Kurt: This contains issues #7-12 of the now-cancelled series by Marc Guggenheim and Howard Chaykin. This series could’ve been great, but it was mostly just decent. I might get it in trade, eventually.
Essential Moon Knight Vol 2 TP $16.99
Ben: I can’t believe there’s a second volume.
Exiles #99 $2.99
Fantastic Four And Power Pack #4 (Of 4) $2.99
Howard The Duck #1 (Of 4) $2.99
Howard The Duck Zombie Var #1 (Of 4) $2.99
Ben: If I see one more Marvel Zombie reference I’m going to scream.
Iron Man Enter Mandarin #2 (Of 6) $2.99
Ben: Sometimes the thought pictures I get from these titles make me feel ill.
Marvel Adventures Spider-Man #32 $2.99
Marvel Masterworks Fantastic Four Vol 5 HC Var Dust Jacket $54.99
Marvel Max Sampler 2007 (MR) Pi
Ben: One for the kiddies.
Kurt: I’m going to hand these out at the elementary school down the street.
Marvel Two-In-One #4 $4.99
Ms Marvel #20 $2.99
Ms Marvel Zombie Var #20 $2.99
Ben: AHHHHHHHHHHHHHHHHHHHH!!!!!!!
Kurt: You’re a man of your word.
Omega Unknown #1 (Of 10) $2.99
Shanna She-Devil Survival Of The Fittest #3 (Of 4) $2.99
Spider-Man Loves Mary Jane Vol 4 Digest TP $7.99
Ben: But the Silver Surfer loves crack.
Super Villain Team Up Modoks 11 #4 (Of 5) $2.99
Uncanny X-Men #491 $2.99
Kurt: More Ed Brubaker goodness.
Wolverine Annual Deathsong #1 $3.99
Ben: But only once a year.
Kurt: All right, you lost me.
Kurt: Speaking of Goth DJs: If anyone has some perverse desire to meet me in person, I will be spinning at the Whirling Dervish’s monthly dance night, Moulin Vieux tomorrow, Thursday, along with DJs Nanashi, Vendetta, and WrappedInPlastic, starting at around 10:00 p.m. The Whirling Dervish is located at 1135 Decatur Street in the French Quarter of New Orleans. Look for the tall guy with the pompadour and the giant boots.
More From Mania
Tweeny Witches Vol. #2
HITMAN
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Ninja Nonsense Complete Collection Limited Edition
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Case Closed Vol.#03
(Wednesday, October 24, 2007)
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I mean they're strangling an all ready choking industry. Sure the little guys on an individual basis might not sell as much as one copy of X-something or Bat-dude, but grab an issue of previews and rip out all the independent pages and it will be significantly slimmer.
But what is the consumer to do? If I want tickets to my favorite band I use evil ticketmaster with more convenience fee surcharges, services charges, and guess you didn't expect this charge as well everyday. (Remember when Pearl Jam boycotted them?) Legally they are not a monopoly, but none of the competitors can compete with their money. Sure that's a business too, but I just want to hear the music.
I don't go to a bookstore and think about the business. I go to buy entertainment, art, things that will let me relax.
Do I write a letter to Diamond? Tell them I do not like there practices. I don't think they would care.
Do you give up your subscription to Superguy? Wouldn't that more negatively affect your local comic book store, where you are more than likely on a first name basis with the owners and workers.
What bugs me the most is that what if we lose out on a excellent new comic because of this. What if there is another Cerebus, Bone, or Poison Elves just waiting to be discovered?