Self-Publishing, Wendy Speaks

Trade Discounts and Distribution: One of the Many Self-Publishing Perks

The self publishing industry is a reaction to the traditional publishing industry. For years, the only option for authors to see their manuscripts published was to hire an agent and/or submit their manuscripts to the traditional houses in hopes of being selected for publication. In most cases, this process took many years, involved substantial changes to the manuscript and most importantly, forced the author into giving up the rights. Retail pricing and the author’s royalties were out of the author’s control as well. Self-publishing allows authors to maintain control over their material and allows them to select the type of distribution that is appropriate to their material and marketing goals.

Speaking of distribution the desire for shelf space is always a popular subject for new authors, and its requirements are very strict. Books that make it onto the shelves of the brick and mortar chain book stores have to carry a very high trade discount (50% to 55%). “Trade discount” is our industry specific term for “profit margin.” For example, when you purchase a book within a Barnes & Noble bookstore for $14.95, 55% of the retail price ($8.22) is divided between the store and the wholesale distributor for their profit. When you subtract the $8.22 from the $14.95, you are left with $6.73. This remainder covers the cost of the actual book. The balance that is left after the price of the book is the author royalty. Typically, authors receive very low royalties in these scenarios.  

In addition to needing a high trade discount, authors also need to provide the bookstore with a “Retail Returns Program.” This program allows the bookstores to return books to the wholesaler and get their money back if the books do not sell. You must provide this program to the retailers, but having it is no guarantee that they will agree to stock your book. 

Conversely, authors that elect to focus on internet sales may select a much lower trade discount as the internet book sites do not require as large of a profit margin. So that same $14.95 retail priced book under a 25% trade discount would look like this mathematically: $14.95 – $3.74 (25% of the retail price) = $11.21 – the actual cost of your book = your royalty. Obviously, $11.21 is a larger number than $6.73. Therefore, your royalty will be greater if sold by an online distributor, assuming the cost of your book remains the same in each equation.

Freedom to choose your trade discount and distribution center is just one of the many perks of self publishing. To learn more about trade discounts, check out Cheri’s post titled Trade Discounts 101. It provides a great overview of industry standards and questions to ask yourself before setting your discount.

ABOUT WENDY STETINA:
Wendy Stetina is a sales and marketing professional with over 30 years experience in the printing and publishing industry. Wendy works as the Director of Author Services for Outskirts Press. The Author Services Department is composed of knowledgeable customer service reps and publishing consultants; and together, they all focus on educating authors on the self-publishing process in order to help them publish the book of their dreams. Whether you are a professional looking to take your career to the next level with platform-driven non-fiction, or a novelist seeking fame, fortune, and/or personal fulfillment, Wendy Stetina can put you on the right path.
Self-Publishing Book Review of the Week

Self-Publishing Weekly Book Review: A Conspiracy of Mirrors

Book reviews are a great way for self-publishing authors to gain exposure. After all, how can someone buy your book if they don’t know it exists? Paired with other elements of your book promotion strategy, requesting reviews is a great way to get people talking about what you’ve written.

When we read good reviews, we definitely like to share them. It gives the author a few (permanent) moments of fame and allows us to let the community know about a great book. Here’s this week’s book review by Midwest Book Review:

A Conspiracy of Mirrors

David McLeod

 Publisher: Outskirts Press

ISBN: 9781432771331

Genre: Poetry

Everyone is the sum of their lives, a reflection of those around them. “A Conspiracy of Mirrors” is a collection of poetry from David McLeod who discusses these reflections and their impact on our lives as a whole. Also blended in throughout the poetry is color artwork from Patrick Coyne & Paolo Sabella. “A Conspiracy of Mirrors” is worth checking out for poetry fans.

Cheri Speaks

Trade Discounts 101

The price of your book is an important detail. It impacts which readers will purchase your book as well as how much money you will make on royalties. The price of your book is based on a variety of factors; one of the most essential elements is the trade discount. This is also referred to as  the distributor discount. To new authors, this concept can seem confusing, but it is as simple as the 5Ws.

What is the trade discount?

The trade discount is the discount you offer to the distributor of your book. This includes retailers, wholesalers, and online distributors. This discount can range from 0% (no distribution) to 100% (highly unlikely).

Who sets the trade discount?

Sometimes the discount is set by the publisher; other times it is set by the author. This usually depends on the publishing company, and your agreement with the company. Self-published authors usually have more freedom in this decision. For instance, Outskirts Press allows authors to set their trade discount based on their goals and needs.

When do I select a trade discount, and can I change it later?

The trade discount is typically determined prior to publication. While it can be changed at anytime, it is not recommended. This can disrupt the author/distributor relationship and may result in additional expenses for the author.

Where will your book be available when choosing certain discounts?

Different distributors expect different discounts. For instance, the minimum trade discount for online distribution is 20%. Retail stores, however, expect a 40-55% discount. They also expect the book to be fully returnable. Wholesale Clubs, such as BJ’s and Sam’s Club, expect a 60-75% discount. It is important to consider your goals as an author. Where do you want your book sold? Where do your readers purchase books? Understanding your target audience will help you determine the best strategy for your book.

Why do I offer a trade discount?

This discount determines the price the distributor pays for your book. It is typically referred to as the wholesale price. The distributor then sells your book at a higher price and keeps the profit. Distributors must be able to make a profit on your book or they won’t carry it. The trade discount also impacts your royalties. The higher your discount, the lower your royalties. Therefore, it is important to set a discount that is beneficial to both you (the author) and the distributor. The goal is for both parties to sell books and make a profit.

When setting your trade discount, be sure to consider your goals as an author, and don’t forget to analyze your target audience. For instance, if your readers buy the majority of their books online, you may not want to focus on retail stores. Also, make sure you do plenty of research before setting a trade discount. Find out what other authors are offering and what your target distributors expect. Also, factor in the number of potential sales and your royalty rate. And always remember, the publishing industry is about both the author and the retailer. Don’t be afraid to negotiate and compromise.

Cheri Breeding ABOUT CHERI BREEDING:
Since 2005 Cheri Breeding has been working as the Director of Production for Outskirts Press. In that time, she has been an instrumental component of every aspect of the Production Department, performing the roles of an Author Representative, Book Designer, Customer Service Representative, Title Production Supervisor, Production Manager and, Director of Production. She brings all that experience and knowledge, along with an unparalleled customer-service focus, to help self-publishing authors reach high-quality book publication more efficiently, professionally, and affordably.
Self-Publishing, Wendy Speaks

Traditional Printing vs Print on Demand… What is the Difference?

One of the biggest decisions for self-published authors is whether to choose traditional printing or print on demand (POD). As a publishing consultant, I am constanly asked questions about the differences and benefits of traditional printing versus print on demand. Below I have answered three of the most common questions I’m asked about POD . Hopefully, the answers will give you a better understanding of the two types of services and help you determine if print on demand is right for you.

Why should I choose POD rather than traditional printing?

Most authors who select POD want their self-publisher to handle distribution and fulfillment as well as the actual printing of the books. This allows the author to focus on what they do best – writing, and hopefully marketing, their books – instead of managing inventory, packaging orders, and shipping books to the buyer.

Why is the per book cost higher for a POD title compared to a traditionally printed title?

The more you buy (of anything, from books to business cards) from a traditional printer the lower your unit cost. Whether you print 100 copies of an item or 1000 copies, your set up costs are the same, and they are amortized over the entire print run. Typically, buyers  order more than they actually need  to achieve a lower unit price.  In POD, the cost of your book is the same for book number 1 and book 2000 because each book is printed one at a time and the set up is included in every individual copy.

So why would I accept a higher unit price?

Authors that select POD are doing it for two specific reasons. The first is they want their self-publisher to print the book and deliver it to the purchaser without them having to be personally involved. The second is cash-flow. Inventory costs money. Buying 2000 books, for example, at $3.50 per book will require an investment of $7,000.00. In a nutshell, POD authors are trading a higher per book cost for the luxury of not having 1000’s of dollars worth of inventory sitting in their home office.

POD is a great option for authors who are concerned about time management and inventory cost. After all, authors should be writing and marketing not storing, packaging, and shipping books.

I’d love to hear your questions, advice, and experiences with traditional printing and print on demand.

ABOUT WENDY STETINA:
Wendy Stetina is a sales and marketing professional with over 30 years experience in the printing and publishing industry. Wendy works as the Director of Author Services for Outskirts Press. The Author Services Department is composed of knowledgeable customer service reps and publishing consultants; and together, they all focus on educating authors on the self-publishing process in order to help them publish the book of their dreams. Whether you are a professional looking to take your career to the next level with platform-driven non-fiction, or a novelist seeking fame, fortune, and/or personal fulfillment, Wendy Stetina can put you on the right path.

 

Book Reviews

Self-Publishing Weekly Book Review: Tales of Little Bear and Little Buffalo

Book reviews are a great way for self-publishing authors to gain exposure. After all, how can someone buy your book if they don’t know it exists? Paired with other elements of your book promotion strategy, requesting reviews is a great way to get people talking about what you’ve written.

When we read good reviews, we definitely like to share them. It gives the author a few (permanent) moments of fame and allows us to let the community know about a great book. Here’s this week’s book review by Midwest Book Review:

Tales of Little Bear and Little Buffalo

Roy Naquin

Publisher: Outskirts Press

ISBN: 9781432766276

Genre: Children’s Book/ Native American

“Tales of Little Bear and Little Buffalo” is a collection of authentic family stories about two Choctaw-Chitimacha Indian boys who lived on Isle de Jean Charles near Houma, Louisiana, during the early 1900’s, when traditional life was changing rapidly. Little Bear and Little Buffalo are descended from a chief of the Choctaw-Chitimacha Indian tribe who chose to settle on the Isle de Jean Charles, close neighbors of the Cajun French speaking community. Little Bear and Little Buffalo face many challenges and adventures in their daily lives. Just walking to school is a great danger as certain hungry swamp predators are hunting early in the morning when the boys need to be going to school.

Little Bear and Little Buffalo manage to accomplish a deed of great value to the tribe in trapping, roping and catching a huge alligator who had been eating calves and livestock. Even though he tries to keep his deed secret, Little Bear is awarded with his own dugout by his father as a sign of respect and acknowledgement that he had done something for the good of the tribe. Other tales of Little Bear and Little Buffalo are filled with many more examples of adventures, near misses, escapes, and also values and lessons learned. Loyalty, friendship, and courtesy and respect for elders, and responsibility for the good of the family and the tribe are recurring themes.

 “Tales of Little Bear and Little Buffalo” originated as family stories and verbal histories, and their sharing and retelling enriches a wide audience. Young readers age 8 and up will enjoy these exciting tales of a different time, an exotic place and a life that was very close to nature.