NVNR: Navigating Economic Downturns
"It wasn't belt tightening--it was a chop off your foot to save your leg kind of thing," said John Cavalier, co-owner of Cavalier House Books in Denham Springs & Lafayette, La., during a panel on navigating economic downturns at New Voices New Rooms in Baltimore, Md., last week.
Cavalier served as moderator for the discussion, which also featured Julia Fleischaker, owner of Greedy Reads in Baltimore, and Emanuel Figueroa, co-owner of Snug Books in Baltimore. They discussed strategies for staying afloat after natural disasters, during slow times of the year, and when the economy takes a turn.
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| John Cavalier, Julia Fleischaker and Emanuel Figeuroa | |
In 2016, Cavalier explained, Denham Springs was hit with a "horrible flood" that left everything "out of business and out of commission." Almost immediately, Cavalier House Books "went on hold with everybody," canceling everything on order and informing suppliers that the store was about to return "a whole lot of sh-t."
What really "saved us," Cavalier continued, was that the store already had a set up for doing school book fairs. They were able to pivot very quickly and "take the bookstore on the road," with the bricks-and-mortar location becoming a temporary warehouse. They were also not shy about using their "sob story of the flood" to work their way into as many neighboring communities as possible.
Fleischaker, who opened the first Greedy Reads store in 2018, said "preparing for an economic downturn" is "how I run the business in general." She said she is "very conservative" with her ordering and the store's display stacks are smaller than those of most stores. That approach of smaller orders and frequent reorders has helped her "handle things as they come up," and she advised booksellers to not be afraid of returns. At the same time, orders of tote bags and other merch are usually the first things to get cut when needed. Fleischaker added that putting booksellers on salary is a very good way to make expenses "much more predictable every pay period," and getting BookManager was a large investment that was well worth it.
The second Greedy Reads store opened only three months before Covid-19 shutdowns began, Fleischaker said, and at first it "seemed like a disaster." However, soon after the lockdown started Fleischaker began offering curated book bags, which she would deliver by car. Through those book bags, Greedy Reads was able to sell down the entire stock of the new store without reordering. The second store turned out to be an "incredible boon" that helped Greedy Reads stay afloat, Fleischaker remarked. The store has continued to offer those book bags, and other additional revenue streams have included renting out the space for events such as album listening parties.
Snug Books has two locations in Baltimore, and Figueroa has used sales data to identify trends "that we expect to see yearly." That includes an annual "danger zone" lasting from about Juneteenth until after Labor Day. During that time, the staff is reminded that "special orders may take a while," and they are unlikely to see many Bookazine boxes. To help boost sales during that very slow period, Figueroa runs a Christmas in July sale, where anything not sold is returned. He will also use that data to see how "price conscious people are being," and might decide to make next month's book club pick a paperback rather than a hardcover, for example.
The data is consistent enough, he pointed out, that if by October "sales are not where we want," the store will start scaling back proactively to save money. If a cash crunch occurs, Figueroa will delay some payments and start talking to the store's landlord. He emphasized the importance of having good relationships with credit reps and bankers and knowing how much "they're willing to float me on a day-to-day basis." Figueroa noted that while it can be easy to be "afraid of change" sometimes, doing things like switching credit card processors, bank accounts, or payroll processors can make a big difference. Switching bank accounts in 2025, he said, helped save the store a "significant amount of money."
Touching on banks, Cavalier advised that they are "terrible creatures" and booksellers should "make them fight each other." Whenever he is refinancing or getting a line of credit, he always gets "comps from other banks," and will strategically change banks or switch if "anyone makes me mad." Fleischaker offered a counterpoint, saying "I like it when they [banks] forget I exist."
When the discussion turned to each store's relationship with debt, Fleischaker said she tries to minimize it whenever possible and does not like it. Figueroa said he made use of a $25,000 grant from one of Baltimore's community development financial institutions to open Snug Books' Inner Harbor location, and he suggested booksellers look into similar institutions in their own communities.
Cavalier, meanwhile, said he and his wife purchased their Denham Springs building in 2023 and are interested in using debt "very aggressively" to buy their Lafayette building. He called commercial real estate the "ultimate savings account" and said he viewed it as "future-proofing the business." In Denham Springs, they no longer have to worry about rent or a landlord, and after redevelopment and refinancing, their current note is less than their past rent. "I'm very interested in doing that again," he said. --Alex Mutter










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