In a summer 2008 NPR broadcast, Lynn Neary talks about the elephant in the room of the book publishing industry. It is an eye-opening episode explaining why small publishers and their authors make little to no money in the book selling business.<\/p>\n
Many authors believe when they acquire a book contract they have made \u201ceasy street.\u201d\u00a0 They think their book, retailing for $15.95 will pay them $1.59 for each copy sold.\u00a0 Then they start fantasizing the math: $1595 for every 100 copies sold; $15,950 for 1,000 copies; and $159,500 if they hit the big time and sell 10,000 copies!<\/p>\n
Whoa there, pardner. It doesn’t quite work like that. \u00a0Most writers are not business people and have little or no knowledge of that side of the equation.<\/p>\n
Neary\u00a0explains that during the Great Depression, many bookstores and booksellers were unable to move their titles because of the economy.\u00a0 As a consequence, the publishers at that time agreed to give the bookstores the right to return books which they could not sell.\u00a0 In the time since, the industry continues this outdated policy.<\/p>\n
It appears as though book publishing is the only industry subject to this insane policy.\u00a0 Could you imagine other manufacturers dealing with this return policy from any other retail organization?\u00a0 Grocery store chains would love it.\u00a0 If they could take any spoiled meat, wilted vegetables, or sour milk and return it to the supplier for cash credit, they would incredibly increase their profit margin.\u00a0 They would also be able to order their stock with total abandon; they could carry anything on their shelves because if it did not sell they would simply return it.<\/p>\n
In essence, this is what is happening in bookstores across America.\u00a0 It is an absurd policy which the huge publishing firms would like to see continue.\u00a0 They can afford returns.<\/p>\n
According to the 2008 report, President and Chief Operating Officer of Rowman & Littlefield Publishing Jed Lyons reports the ugly truth about book sales is the rate of returns.\u00a0 He says booksellers return roughly one in four books as unsold.\u00a0 For hardback book sales last year, the rate of return was 43 percent.<\/p>\n
These returned books must be\u00a0stored in a warehouse where the same bookstores sometimes reorder the same titles.\u00a0 Publishing companies must pay the initial shipping, the return shipping, and then the third shipping to the bookstore again.\u00a0 As Mr. Lyons reflects, \u201cSometimes I think the only people making money in the book business these days are the truckers who are picking up the books as they go out and picking up the books as they come back.\u201d<\/p>\n
For the small publisher the prospect of profit is very dim. \u00a0They have to pay for shipping to place a book in a brick and mortar bookstore at a discount distributors and bookstores require – 55 percent!\u00a0 Then, if the book does not sell, they have to pay to have the book returned and placed in storage.\u00a0 Indeed, with a return rate greater than 30 percent, the numbers turn into a loss.<\/p>\n
It is time for a complete overhaul of this system.\u00a0 This return policy is completely absurd.\u00a0 A few bookstores and just about every publishing house, other than the huge companies, want to see the return policies eliminated.\u00a0 This would actually be healthy for the book industry.\u00a0 This would force bookstores into selecting titles they know would be profitable.\u00a0 Additionally, book buyers would benefit from lower prices.<\/p>\n
Unfortunately the largest publishing firms who can absorb an inordinate number of book returns want to see the system kept in place as is.\u00a0 Those companies are fearful they will lose sales if their books are not returnable.\u00a0<\/p>\n
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\u00a9 2010 J. Clark<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" In a summer 2008 NPR broadcast, Lynn Neary talks about the elephant in the room of the book publishing industry. It is an eye-opening episode explaining why small publishers and their authors make little to no money in the book … Continue reading