Leadership

Two years ago in this column I invited readers to celebrate the final payment in a long journey of debt elimination by Mennonite Publishing Network. In a period of about six years, MPN, through a combined effort involving many people, repaid a debt of more than $5 million. We still feel deep appreciation for the support and contributions of individuals and congregations during that time.

We were optimistic as we prepared the budget for the fiscal year ending Jan. 31, 2009. In response to a board request to start building reserves, we developed a budget with a projected reserve of 1 percent of sales. For the first six months of the year, we got close to sales targets, and it looked as though we would end the year with a small reserve.

Then the recession hit in the summer and fall of 2008. Sales softened on all fronts, but particularly through the book retail outlets. We ended the year with an overall loss of $270,500 on total sales of $3.28 million. About half the loss was due to noncash charges (e.g. depreciation and inventory adjustments). The remaining portion of the loss decreased MPN’s cash reserves.

In January, as we finalized the budget for the current fiscal year (Feb. 1 to Jan. 31, 2010), we knew the year would be tough. In this year’s budget, we cut overhead costs by eliminating some positions and trimmed expenses we believed were least likely to affect sales. We set what we believed to be realistic sales targets.

We also put in place measures to stimulate sales—hiring a director of marketing and sales and planning for an expanded version of Simply in Season, accompanied by an extensive marketing and sales plan this fall. We scheduled a range of new resources and books to be released in the spring, in time for the churchwide assembly in Columbus, Ohio, in early July. The enthusiastic response and robust sales there confirmed the timeliness and relevance of these materials.

However, the economic downturn is hitting us—and many other publishers—harder than anticipated. So far this year, sales of congregational resource materials are slightly above budget, but sales of books have continued to decline and are about 20 percent below budget. Given MPN’s limited reserves, we are particularly concerned about an extremely tight cash situation as we set limits on how far to draw on a line of credit.

This fall, we are taking several short-term measures to cut costs and bring in extra cash while waiting for longer-term sales-stimulus measures to take effect. For example, all staff are taking a two-week “pay furlough”—two weeks off without pay. We regret having to institute measures such as this. At the same time, we’re aware of similar steps being taken by other church agencies and by other companies, whether public or private.

We are stepping up marketing efforts by improving the usability and searchability of the MPN Web store, planning for greater use of email to notify congregations and members of new and existing resources, and establishing gift certificate capability. Conference-based resource advocates are being creative in highlighting new resources wherever possible—resources produced by MPN and by other parts of our church.

Hopefully these measures will prove to be sufficient. If not, we will take additional measures to remain financially viable so we can continue to fulfill the publishing mission mandated by the church—to help equip the church to experience and share the gospel of Jesus Christ from an Anabaptist perspective.

We share these challenges in order to be transparent about MPN’s financial picture and to invite your prayers and support. Amid the sea of books and resources that are available to you and your congregation, take time to consider those produced by your own denominational publisher. Take advantage of opportunities to provide feedback and counsel on what is most needed to help you and all members of your congregation be grounded in the faith and share God’s good news at home, in your congregations, across the street and around the world.