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We do a mixture of things here in Leeds. We buy a number of collections each year (12 -15). The list of collections are mainly suggestions from the readers groups themselves (often a mixture of popular titles and some classics - old and newer) mixed with some foreign fiction and the odd non-fiction title. We also tend to make some of our promotions titles (Orange, Richard & J) into readers group collections once the promotion is completed as we generally have plenty of copies in stock. Our collections are mostly 20 copies.
The remainder of the time, the groups reserve books which are in stock after joint decisions in the groups. We also buy some smaller collections for teenage and childrens groups which tend to be smaller.
We then set up a circulation programme for the collections so that they are constantly on the move. They are never kept in store. At the end of a circulation programme (about 18 months) we ask any groups who haven't read the title if they want to read it and then books are allocated out through the libraries. Surprisingly (or not perhaps) they still tend to be in a reasonable condition at the end.
Readers group facilitators meet with me twice a year and we pass on information about good readers group books