Book buyers: looks like the party’s winding down. Amazon’s once-generous discounts are slowly going away, as this article in the New York Times reports.

I’ve been expecting this for years. Now that Amazon has kicked so many competitors to the ground through ruthless discounting, the laws of the market decree rising prices. This is what happens when a company gains a market share bordering on monopoly—while establishing a tech and logistics infrastructure that would be very difficult for a new competitor to match, so the likelihood of being undercut on a mass scale as they did to others is slim. Amazon has also, for many years been utterly ruthless in its dealings with other segments of the market (particularly small independent publishers, where years ago it started extracting a 55 percent discount in an industry where the normal bookstore discount had been 40 percent).

Amazon’s history is full of stuff that looks a lot like bullying. I always expected predatory pricing—coming in willing to take a short-term loss through lower prices, in order to drive competitors out of business, and then raising the prices when consumers no longer have alternatives—was part of the strategy. What made it work for them, as the Times article points out, is that…

In its 16 years as a public company, Amazon has received unique permission from Wall Street to concentrate on expanding its infrastructure, increasing revenue at the expense of profit. Stockholders have pushed Amazon shares up to a record level, even though the company makes only pocket change. Profits were always promised tomorrow.

Small publishers wonder if tomorrow is finally here, and they are the ones who will pay for it.

 

 

Publishers accepted the higher discount because:

  • They had no choice
  • Amazon does provide some services that used to require a wholesaler (and wholesalers traditionally buy at 55 percent off)
  • AND the higher discount did translate into a reader benefit: reduced prices

Now that the third reason is being eroded, it will be interesting to see if publishers rebel. However, now it’s probably too late. Amazon is the only mass retail channel that routinely deals with tiny publishers. Barnes & Noble, the last remaining competing megachannel, prefers to buy from wholesalers (yes, I know, there are exceptions). If you say goodbye to Amazon, you’d better have some non-bookstore channels in place.

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This morning, I chanced across Green Inventions: 10 Hot Eco-Innovations That Could Change The Planet on Huffington Post Green. It’s a good list, including such modern wonders as LED lighting, industrial-scale composting, and LEED green building certification. However, it’s far from complete.

At the end of the article, readers were offered a chance to add to the list. Here’s what I wrote:

There are so many wonderful innovations: Zero Waste, passive solar design, urban rooftop farming (something I’ve been advocating since about 1980), small-space vertical gardens for apartment dwellers, lower-impact adaptive technology like using a tiny wheelchair hatchback instead of a big galumphing gas-guzzling wheelchair van (the hatchback door becomes a ramp–no hydraulics needed), solar chargers, the Stretch building code…the list goes on and on.

It’s an exciting time, and I am optimistic. Yes, it would have been easier to make all the sweeping changes 30 years ago–and we already knew how. I know of a house deep in the Colorado Rockies near Aspen (think snow, cold winters) that was designed so well–in 1983–that not only doesn’t it need a furnace, it has banana trees in the sunroom. But we can still get it together and reverse the damage to the planet while creating hundreds of thousands of jobs. All we need is the will.

I realize I didn’t even mention the money we save when we do these things, though I did get one of the economic arguments in (jobs).

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I can think of no better way to celebrate July 4th this year than to acknowledge the huge honor my hero and friend Dean Cycon, CEO of Dean’s Beans in Orange, MA recently received.

Dean Cycon, CEO, Dean's Beans, jamming with musicians in Rwanda
Dean Cycon making music in Rwanda

Dean Cycon is the most ethical business owner I know, and the only person to be a guest twice on the business ethics radio show I hosted and produced for four years, from 2005 to 2009. Dean has done 100% organic and fair trade coffee and cocoa since the day he opened his company, which he located in a depressed area where jobs are scarce. Dean not just funds but also actively partners with people in the villages that supply his coffee to do “people-centered development” projects, led by the folks who live and work in those villages. He also partners with local charities in western Massachusetts to create private label coffee they can sell as fundraisers. Oh yes, and he’s also the author of one of my favorite travel books: Ippy Award gold winner Javatrekker: Dispatches from the World of Fair Trade Coffee (Chelsea Green, 2007). And he’s a fun guy who hasn’t let success interfere with his playful spirit.

And now, OMG, Dean Cycon has been awarded one of the most prestigious honors in the world: the Oslo Business for Peace Award, also known as the alternative Nobel Prize for business. The award judges are actual Nobel Laureates, including microlending pioneer Prof. Muhammad Yunus, winner of the Nobel prize in Economics in 2006, and Prof. A. Michael Spence, winner of the Nobel prize in economics in 2001. Dean is one of five honorees, and the only American. All I can say is, he richly deserves it.

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Many developed countries have embraced the Precautionary Principle, which states that new processes and products have to be proven safe, and if we don’t understand their effects, we wait.

The United States, on the other hand, passed the “Monsanto Protection Act,” which not only utterly violates the Precautionary Principle, but actually removes the court system’s power of oversight over GMO (genetically modified) food safety, even when the products (developed not only by Monsanto but by other agribusiness/chemiculture companies) and  have been found to cause health risks.

This horrible law was slipped into a much larger bill and has the potential to wreak havoc in all sorts of ways—not the least of which is the threat to organic agriculture if their fields become contaminated by windblown GMO seeds (and the further threat to farmers’ livelihoods when Monsanto actually sues the farmers whose fields it contaminates, for using their seeds without permission). Organic farmers have countersued Monsanto, but by logic I don’t understand, the courts have generally sided with Monsanto, ruling over and over again that the chemical giant’s pollution and ruination of organic crops allows Monsanto to collect damages for the illegal use of its products, while denying the organic farmers compensation for trashing their crops.

And now, there’s a threat to US exports: South Korea, Japan, Taiwan, and the entire European Union are among the countries canceling contracts and testing shipments after a Monsanto-developed GMO “zombie wheat” contaminated a wheat farm in Oregon.

Oh, and let’s not forget that many genetic modifications are designed to allow plants to tolerate larger quantities of herbicides whose safety is widely questioned—including Monsanto’s own Roundup.  Yes, in a triple-whammy, Monsanto sells “Roundup-ready” GMO seeds, and then sells the Roundup to spray on those plants, which causes weeds to develop resistance, so farmers respond by spraying even more Roundup. Eeeeew!

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Today, I am proud to be an American.

When I attended my first same-sex commitment ceremony, sometime around 1980, I never thought I’d see so much progress, so fast. In 1982, I went to the first LGB pride march in Northampton, Massachusetts—and some of the marchers wore bags over their heads to protect their idenities.

In 2005, just 23 years later, my own state of Massachusetts became the first to legalize same-sex marriage. And now, with today’s Supreme Court decisions in favor of gay marriage, several major ripples happen:

  • California will likely become the 13th state to legalize marriage equality, and that will mean about 30 percent of the US population will live in a place where partners of the same gender can marry
  • The wretched DOMA, the so-called “Defense of Marriage Act” (I prefer to call it the Desecration of Marriage Act) is invalidated, and the numerous discriminatory practices it enshrined are nullified—creating economic equality for same-sex relationships in such matters as inheritance, hospital visitation rights, and spousal benefits (DOMA is the worst kind of compromise—the kind that makes no one happy)
  • The US is well on its way to joining the 14 other countries that have legalized gay marriage, and thus joined the 21st century on this issue: not just the progressive hotspots of Northern Europe, but even two countries in South America (with Brazil expected to join them soon) and one in Africa

So what does it mean? Living in a state where same-sex marriage has been legal for 8 years, I can tell you that it has broken down a lot of barriers. When people realize that the same-sex couples in their community are just neighbors, working with them on the block beautification committee or school parent association—struggling with the same issues, sharing the same triumphs—a lot of the prejudice goes away. Just as we’ve seen a huge change in relations between races after the legal apartheid of the segregated south went away, we’ll see a gradual dissipation of prejudice as people of different sexual orientations rub shoulders in multiple contexts.

Congratulations to the Supreme Court, to all my lesbian and gay friends, to the Obama administration that urged this decision—and to my country.

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Aaargh! Tomorrow is an election day in Massachusetts. We’ve been getting calls for months, but today, its completely out of hand.

–> In the past two hours, from 6 to 8 p.m., I have received FOUR calls. Two from Democratic Party volunteers, one human from the National Writers Union and one NWU robocall. This doesn’t count the barrage of calls over the past week and earlier today.

In an era where the NSA can read our phone logs, I don’t understand why the Democrats and their allies can’t run a “merge-purge” to eliminate duplicates. That technology has been part of the direct-mail world since the 1970s.

If Republican Gabriel Gomez wins tomorrow against Democrat Ed Markey, I’d wager that it was because the Dems over-called to the point of harassment, and turned people off. Since there are more Democrats than Republicans by a huge margin, more Democrats than Republicans will get annoyed.

Personally, I have a low regard for Mr. Gomez and a reasonable degree of agreement with many of Congresman Markey’s positions. And so I will vote Democratic tomorrow. But I also have a ery low opinion of repeat intrusion marketing. I will vote for Markey despite the campaign’s tactics, and not because of them.

As a marketer, I hope the campaign can survive its own excesses.

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Since about 1980, I’ve felt that we could solve a lot of our urban problems by seeing flat city roofs (and for that matter, roofs in suburban shopping centers, etc.) as resources: places where we can harvest energy with solar collectors—but also harvest food.

But when I started talking about my brainstorm, people told me that the roofs were not designed to bear the weight of a dense garden, and the amount of reinforcement they needed would make the whole idea unworkable. I never quite believed this. It seemed to me that if you were to put one or two 200 square-foot gardens onto a 2000 square foot roof, the weight load could be distributed across the entire rooftop without much difficulty. But I’m not an engineer.

Still, I wasn’t surprised to see the “green roof” movement emerge over the past ten years or so—but I was disappointed at how few green roofs seem to grow edible crops.

I do think community food self-sufficiency—particularly in urban areas–is a big part of the answer to “how do we reclaim our economy—and our bodies?” and a great antidote to the very dangerous practices of “chemiculture” [a word I personally coined, BTW], GMO seed strains, and the attempt by Monsanto and similar companies to exercise a terrifying degree of control over (and damage to) our food supply.  So I was delighted when I found these folks in the Bronx, using 6000 square feet of the 10,000-square-foot roof of a city-owned apartment building, to commercially grow hydroponic greens. With hydroponics, there is no soil, and therefore the issue of weight and roof support is moot. In this short video, Farm Manager Kate Ahearn gives us some background about the project. (I did make one error. I referred to a supermarket rooftop farm in Lynn, Mass. It’s actually in LynnFIELD.)

This model, with hydroponic gardens and protection from the elements, offers a 12-month growing season and numerous harvests. Yes, it’s more expensive to set up than a basic soil-based garden, but the payback is much greater. And as a green marketing guy, I see profitable, sustainable, earth-friendly businesses like this as a big step forward not only in economic development but in human rights and the rights of other living things.

Note: there will be more on this story. My old buddy Ted Cartselos did another shoot, with a better camera, on Friday. (Thanks, Ted, for working with me on this.)

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I’ve been debating with a couple of nuclear apologists on Twitter this week, following my public celebration of the permanent closing of San Onofre’s twin nukes.

My German correspondent Rainer Klute sent me to a very interesting article in Forbes, “How Deadly Is Your Kilowatt?

The article made quite a number of valid points, including the very high death toll from unregulated coal in China—something that could be slashed quite easily just by adopting US pollution standards.

But when I got here, I had to wonder what the author had been smoking:

The dozen or so U.S. deaths in nuclear have all been in the weapons complex or are modeled from general LNT effects. The reason the nuclear number is small is that it produces so much electricity per unit.  There just are not many nuclear plants. And the two failures have been in GenII plants with old designs.  All new builds must be GenIII and higher, with passive redundant safety systems, and all must be able to withstand the worst case disaster, no matter how unlikely.

Two failures in the US nuclear sector? Off the top of my head, I can think of three major nuclear failures that could have put wide swaths of the population at risk, had there been breaches of the sort at Chernobyl and Fukushima: Enrico Fermi in Michigan, 1966; Browns Ferry, Alabama, 1975; and of course, Three Mile Island, Pennsylvania, 1979. And I knew there were plenty more, so I did some searching. A list of nuclear accidents at https://pec.putney.net/issue_detail.php?ID=18 lists at least 59 incidents in the US. 59 times that could have led to calamity!

While Gen III designs, with several new layers of redundancy, are clearly superior to the Gen II, they are untried, and some scientists have serious concerns about their safety:

Other engineers, although not outright saying that they are not safer, are more conservative and have some specific concerns. Edwin Lyman, a senior staff scientist at the Union of Concerned Scientists, has challenged specific cost-saving design choices made for two generation III reactors, both the AP1000 and ESBWR. Lyman, John Ma (a senior structural engineer at the NRC), and Arnold Gundersen (an anti-nuclear consultant) are concerned about what they perceive as weaknesses in the steel containment vessel and the concrete shield building around the AP1000. They say that the AP1000 containment vessel does not have sufficient safety margins in the event of a direct airplane strike.[3][4]

And let’s not forget that the Generation II plants were themselves a reaction to (and supposed improvement over) safety flaws in the old Generation I series.

Also, for all the talk about withstanding the worst-case disaster, let’s not forget that humans have often drastically underestimated the power to create havoc. Nobody thought that a tsunami would breach the seawalls at Fukushima. No one thought New Orleans would be flooded not by Hurricane Katrina flooding the Mississippi, but by the storm’s breech of the levee holding back the waters of Lake Ponchartrain.

Oddly enough, my discussion with Mr. Klute had mostly been on the question of the carbon impact of nuclear, and my contention that all the many steps in the fuel cycle, starting with mining, have a significant carbon footprint. But the Forbes piece didn’t address the issue, and that conversation will have to wait for another day.

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Anybody else out there hate robocalls and refuse to do business with them?

I’m a self-described “publicity slut.” I average well over 100 media publicity placements per year. I spend a lot of time reading and responding to reporter queries, posting to discussion lists, commenting on blogs, participating in social media, etc., etc., and I recommend these tactics to my clients and to the readers of my books on marketing. And I actually get some very good clients from free listings.

So why do I hang up on all the robocalls that greet me with “press 1 to update your free listing” (and I seem to get several of these robocalls every week)?

For a whole bunch of reasons. Here are seven among many examples:

  1. I don’t know who the company is. There is no greeting on these robocalls, just the command. I have no idea who they are, whether they have a pre-existing relationship with me, what kind of reputation it has, and whether anyone uses this database.
  2. I don’t know if the company using the robocalls even has a public database, or if the robocalls are just a scammy way to gather information for nefarious purposes.
  3. There’s no clue about how easy or hard it will be to update this listing. Will it take me two minutes…or two hours? There’s no way to ask the robocall.
  4. Since the update is by phone, accuracy is a concern.
  5. I am sure there’s going to be an ask for money somewhere, and I don’t want to invest (potentially) a whole lot of time only to find out that I’m not eligible because, for instance, I don’t choose to buy a copy of the directory for several hundred dollars. I have learned from hard experience that free often comes with a catch, and free via robocalls will be pretty much guaranteed to have a catch.
  6. I also don’t want to proceed down this road without knowing the real price or any other terms and conditions.
  7. And the biggest reason of all: if you are trying to sell me something, I want contact with a human being who can answer my questions; robocalls don’t cut it in my world.

From one marketer to another, I have to ask: why are you running up your phone bill with this useless, wasted marketing?

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Outrageous! Under normal circumstances, the legal limit for radioactive iodine 131 in water is 3 picocuries per liter.

But in case of a nuclear accident, that standard goes out the window (or perhaps I should say, out the cooling tower), with the recent adoption by the Environmental Protection Agency of a Bush-era backdoor plan for nuclear accident response. A Forbes article about this travesty, “EPA Draft Stirs Fears of Radically Relaxed Radiation Guidelines,” sounds the alarm:

The new EPA guide refers to International Atomic Energy Agency guidelines that suggest intervention is not necessary until drinking water is contaminated with radioactive iodine 131 at a concentration of 81,000 picocuries per liter. This is 27,000 times less stringent than the EPA rule of 3 picocuries per liter.

This is one of many alarming standards relaxations in the new regs. Another, allowing for 2,000 millirems of radiation exposure over time, is expected to increase the number of cancer deaths  from 1 in 10,000 to 1 in 23.
Though it’s only a draft, it has been adopted as interim policy. And there’s enough concern that Public Employees for Environmental Responsibility issued a press release harshly critical of the new regulations.
My thanks to local journalist Stephanie Kraft, whose article in the Valley Advocate alerted me to this.
This is an absolute outrage!
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