Tag: Distribution

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.
Choosing a Publisher

The Importance of Distribution in Self Publishing

If a publisher focuses on discounts to an author who buys their own book in bulk, that often communicates two things. 1) That publisher is more concerned with selling to you than to other readers. 2)  The publisher is charging you too much for lower quantities. Do you really want to be forced to buy 100 books at a time just to get a fair price? “Bulk” discounts simply trick the author into buying more books than they need, which defeats the whole advantage of on-demand printing.

I’ve seen many authors go down that road, and then end up with lots of books sitting in their garage or basement that no one knows about, because the distribution piece is missing.  The power of the on-demand printing and EDI distribution offered in custom self-publishing take advantage of wholesale availability via multiple sales channels including Amazon, Barnes & Noble, Borders, Baker and Taylor, and Ingram—North America’s largest distributor.  Look also to see that your book is available through I-Page, the book ordering system available at over 25,000 bookstores and retail chains world-wide.

Do look also for a publisher that will sell your book to you at a special author discounted price as well.  It’s never a bad idea to have access to an inventory to compliment your virtually endless on-demand inventory.

The power of distribution when paired with flexible pricing creates an advantageous sales combination for the self-publishing author.



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Book Marketing, Book Promotion, Choosing a Publisher, Self-Publishing, Uncategorized

4 Myths about Book Publishing Today

There is a lot of confusion, controversy, and questions surrounding the terms self-publishing, vanity press, print-on-demand, etc. As you decide the best publishing path for you, let’s clarify some misconceptions some may have propagated.

1. MYTH: Whoever owns the ISBN owns the rights.
FACT: This used to be true. Nowadays, it is no longer true. Good self-publishing options assign the ISBN for the authors’ convenience, but still allow authors to keep 100% of the rights to their books. Be sure to check the contract.

2. MYTH: Independent self-publishing is different from publishing with an established organization because that publisher owns the ISBN.
FACT: It is true that the ISBN identifies the publisher of record. With reputable options, authors can supply their own ISBN as an option. Of course, if an author prefers the publisher to assign an ISBN for them, that should be an option too. And that’s what self-publishing is about – author choice and author control.

3. MYTH: New York publishers promote and market all their books.
FACT: New York publishers usually devote the lion’s share of their marketing budget to the top 1% (Harry Potter, for example) of the books they publish. The other books published during that season are victims of the sliced marketing budget. The majority of traditionally published authors are referred to as “mid-listeres” and don’t get much support from their publisher at all.

4.MYTH: Printing a book with an off-set printer is the same as self-publishing it.
FACT: Printing a book is one facet of publication. Before a book can be printed, it needs to be designed. Then it needs to be printed. Then it needs wholesale distribution through Ingram and availability online with retailers like Amazon and Barnes & Noble. Then it needs fulfillment of orders and invoicing.

Printing a book with an offset printer accomplishes one of those steps. Publishing a book with a leading self-publishing option accomplishes all of them. Almost anyone can “print” a book, but what about all the other stuff that is required?


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Choosing a Publisher, Self-Publishing

Self-publishing – Authors become the Gatekeepers

In a recent blog post, literary agent Nathan Bransford wrote of on-demand printing and distribution:

“No warehouses, no catalogs, no print runs. Online vendors, as we’ve seen, will sell anything. In this scenario, does the Author of the Future, especially one with a built-in audience, really need a publisher? Well… yes. Maybe.”

Bransford goes on to argue in favor of the author/publisher relationship, stating that the role of the publisher lies in the dirty work – copy editing, cover design, distribution, marketing, etc. We know that writing and publishing is often the easy part – the real execution comes in getting books effectively into the marketplace. That is where real self-publishing options stand out. Be prepared to pay for the services you and your publishing consultant determine best suited for your goals. In the long-run, you’ll thank your self. And so will the readers who have the privilege of enjoying your work.

Bransford: “But publishers would have to be extremely author-friendly — they would be providing a service, not relying on their traditional role as gatekeepers and distributors. Publishers won’t be able to rely, as they have traditionally, on the fact that authors need them in order to reach their audience, just as authors won’t be able to rely on publishers losing money on most of the books they publish.”

Keep your eyes and ears open. Self-publishing is on the way.

– Karl Schroeder


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Choosing a Publisher, Self-Publishing

Self-Publishing Pricing Considerations

Book pricing is important to consider when exploring self-publishing options. Many authors get pulled in by little or no upfront costs. It’s important to investigate how that publisher benefits from such a model.

The fact is, most publishers charge you the wholesale price (or higher) for your own book unless you buy it in bulk?

The wholesale price! How are you supposed to make any money reselling your book to retailers? The wholesale price is what retailers will expect to pay.

Make sure your publisher offers author copy base prices below wholesale. Through a bit of investigation you’ll likely find that with a strong publisher your base prices are usually dollars below other publishers.

Most publishers attempt to conceal this by offering “bulk discounts” on large book orders of 100, 200, 500, or more.

Do you really want to buy 500 copies all the time, just to get a reasonable “per unit” price? Yes, when your book is first published, this might be okay because you’ll need marketing copies.

But what about 1-3 years down the road, when you just want 10 quick copies? Then what will each book cost you?

Just something to be aware of as you finish up your manuscript.

Have fun and keep writing.

– Karl Schroeder