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Math Lessons for Small Presses – Part 2
Lesson #2
WHOLESALERS and how they sell books:
Book wholesalers are companies that buy books from publishers at a deep discount and hold them in their warehouses so that Internet and “brick and mortar” stores can order the books from them. Bookstores like to use wholesalers for a number of reasons: namely speed, convenience, and less financial exposure.
Book Distribution is not easy!
When a bookstore orders a book from a wholesaler, they will usually get their order in twenty-four hours. Next-day service is the standard from the top wholesalers. The discount a store can usually expect to receive off the retail price of the book from a wholesaler is 40 to 45 percent. What the bookstore loses in profit margin, they often make up in convenience and risk reduction. A book ordered from a wholesaler can be combined and shipped with hundreds of other books.
Some stores hire wholesalers to stock, manage, and handle all aspects of their book departments. There are large “big-box” chains that happily hand their title selection and discount negotiations over to a wholesaler that will manage the entire department for them. The same can sometimes be true for libraries. There are many U.S. library systems dependent upon wholesalers for all their new books. People at the chain or library office work with the wholesalers and oversee the choices, but how closely that is managed depends upon each individual situation.
The difference between a wholesaler and a distributor is this: A distributor works FOR the publisher. A publisher hires them to handle the warehousing, shipping, order processing and sales of their book. A wholesaler does not work for a publisher, they are the publisher’s customer. They buy books from the publisher and resell to THEIR customers.
Most wholesalers have the word “distributor” in their name. This is to identify them as companies that distribute books to bookstores and libraries, but they are not the same sort of distributor that you need when B&N sends you a letter telling you to “get a distributor”.
If you want your book to have a chance at a bookstore chain like Barnes & Noble or BooksAMillion, and if you don’t want to hire a distributor, a wholesaler is your next best bet.
The two biggest book wholesalers for the book industry right now are Ingram and Baker & Taylor. You can find their application processes on their websites. Send your books in with the proper paperwork and try to get your titles into at least one of these wholesaler’s warehouses. Ingram and B&T do not usually take small presses, but B&T will sign up a small publisher if they have enough marketing and sales plans to support the book.
Ingram has recently partnered with IBPA and through them, a small press CAN get listed in Ingram’s system. However, only a very small fraction of those books get ordered and stock at Ingram. Only the books with strong demand get stocked, the rest are just listed and Ingram will order a book from the publisher when a store backorders one. (and the kicker? Most bookstores will not back order.)
Remember, if you get an order, you will be selling your books to the wholesaler at a discount of at least 55 percent. They will usually order only as many as they need to fulfill the demand coming in from their customers … stores and libraries. If they are overstocked or books come back from the stores, they will return those books to you for a full refund. (Having fun yet?)
So, back to the math:
A book priced at retail is $16.95
A publisher sells it to a wholesaler for $7.63 (55% discount)
The wholesaler has paid $7.63 for the book.
They then turn around and sell it to the bookstore for $9.83 (40% discount off of the retail)
The wholesaler pays for the overnight shipping and packing materials. The profit for the wholesaler is $2.20
Many of my clients want to know why they have to give so much of the profit to distributors and wholesalers. The short answer is: they don’t. It is possible to convince your local stores to stock your book on consignment or to sell them directly on Amazon yourself. However, the shipping costs, time spent and number of venues that will not take your book often turn out to cost publishers FAR more than a wholesaler’s cut….
2013 Book Contests and Book Awards – Deadlines and Details
Nicole Riley spent some time this week researching the deadlines and details for the 2013 book contests and book awards. A LOT of these contests and awards do not have the 2013 information up yet, but she put them all in a great spreadsheet for us and I thought it would be nice to share! We will keep updating this spreadsheet throughout the year, so check back now and then for an update!
Please click button to access the New Shelves webpage that has the current book contest deadlines.
She did a great job researching this, but we cannot be held responsible for inaccurate information given by the sites or changed data after she pulled the details. Please use this as a starting place for your own research and verify all information on the sites!
Merry Happy Holidays!
Amy and Nicole
Math Lessons for Small Presses
Lesson #1
PUBLISHERS and how they sell books:
If a publisher wants to get their books into a bookstore or library, they will have to sell their book to a store or a wholesaler at a deep discount. That discount is usually between 40 and 55 percent off of the retail price. It can sometimes be 60 percent or more if the store is part of a chain or a wholesaler that has a central warehouse and has extra costs associated with getting the books to THEIR customers.
The book buyer for the wholesaler or store will contact the publisher, place a purchase order for books, and expect to receive them in five to seven days. They expect to be billed for these books, but will usually require at least ninety days to pay.
If you want to become a publisher, here are a few things you should think about. You have to plan and budget carefully. Small presses usually aren’t paid for three to four months or longer. Plan for not getting paid for 6-7 months.
You will have to pay to ship the books to them. They rarely will pay a small press for shipping. If you want to take a stand, I applaud you! But it will cost you some sales.
Now, are you ready for the big hit? Publishers may not even see the money they think they are owed because the books are bought on a returnable basis. Fully returnable. One hundred percent. (Or as we used to say when we were kids: backsies!) After a publisher has shipped a book to a store, the bookstore has the right to ship it right back for any reason.
So, a book priced at retail is $16.95
A publisher sells it to a wholesaler for $7.63 (55% discount)
The publisher then waits sometimes 6 months for the $7.63 or for the book to be returned.
If the book’s printing and design/editorial costs are in line with what they should be, each book should have cost the publisher approximately $ 3.25 per unit to produce.
The shipping and distribution costs of GETTING a $16.95 book to the wholesaler is usually around $3.50 a book. (this factors in calls to stores and wholesalers, sample copies or flyers sent to buyers, shipping of books, materials, returns… it assumes that you are doing everything yourself.
That leaves the publisher .88 cents a unit in profit.
Where does all the rest of the money go? Why does a wholesaler take so much? That leads us to next week’s Lesson #2
What Does an Author Website Need?
— By Amy the Meanie —
There are a few different ways that you can handle your website plan. If you are an author with a great deal of expertise, create a website that will last beyond just the publication of your book. Create a website that has your entire brand under it. In that website that handles everything, you can then have a series of pages and subpages for your books.
For example. Karen Kang has created a company called Branding Pays. http://brandingpays.com/
On the webpage is a sub page for the book: http://brandingpays.com/book/
On THAT page is another level of subpages with details and content to educate and entice the reader to buy her book:
- EARLY PRAISE
- CONTENTS
- AUTHOR
- EVENTS
- WEBINARS/COACHING
Here is another example of an author who has a great brand and consulting business and uses his website to draw attention to all he offers. The book page is important and easy to see, but only used as a part of what he is offering.
What I like about this site is that when he has a new book come out, he highlights it right away on the top of the main page. But when other projects take precedence, he highlights those instead. He has a terrific drop down menu for all of his books and each page is clear, persuasive and very visual.
http://eosworldwide.com/traction/eos-traction-book/
He also cross-sells his other seminar and consulting services on each page. Subtle, not pushy, but effective.
There are a number of good reasons to create a website that highlights the book only. I have a client in a very regulated industry who will not allow him to cross-sell any services. His industry constraints make it necessary to separate the book from his business completely. He has done a terrific job on his website:
http://dollarsanduncommonsense.com/index.html
This is a wonderful example of a simple site that hits all the basics:
- A page that lists the media hits and tells the media how to get in touch with him
- An author bio
- A button/page that allows media and buyers to download samples.
- A good contact page.
- His front page shows him on TV as an expert and gives the browser a good idea of what his book and message is about.
- Several locations where folks can “Buy the book”
This is an extremely simple website that has all the “must haves”.
But what are the other possible elements an author/book site should include? Here is a list.
- Home page with a brief, short, just-a –few-sentences about why someone should buy the book. Not a description of the book, but a promise of what reading the book will deliver.
- “Buy the book” buttons on every page that link to all the major places from where you want them to buy your book. (indie bound, Amazon, B&N.com Books-A-Million.com) Don’t just use Amazon, be fair to everyone.
- About the Author. Author bio, short form and long form. Author photo and a link to allow media to download a high res version of the author photo. For non-fiction authors, credentials, CV, list of awards…. Etc.
- An Event page with press releases, event photos, calendar of events, contact information for those wishing to host an event.
- It is nice to start and maintain a list of reviews and endorsements right from the beginning. What are people saying about your book? Put it on the webpage!
- Your blog (even if it is a duplication of another blog address)
- Your Table of Contents and a sample chapter
- If you have a media page (and you most likely should), make sure you make thing easy for the poor reporter. Headshot, bio, press releases, sample chapters, front cover, full cover spread, and contact information should be very easy to find. Make sure everything is high resolution.
- If you want to make a page that shows where you have been, put a few on the front page too to impress browsers. Use the logos from the stations you have been on and newspapers/blogs you have appeared in.
- Link to EVERYTHING you can on line (most TV and radio shows now have online links. Find your clip and link it). If you write an article for another blogger or for a news outlet. Link it!
- Links to other authors/books/sites you find helpful. Links help search engines find you
- Have at least three levels of pages. Main, Secondary and Tertiary. SEO works better with three levels of pages and make sure you link all three levels on each page. (Third level links to an article on the second level. Second level always links to the main page and a tertiary page as well.)
This is by no means a complete list, I am sure there are things other authors have done that are extremely cool, but this is the list of what has proven to be helpful and effective for many of my clients.
Which PR Efforts Turn Into Book Sales Take two…
— By Amy the Meanie —
For several years now, I have watched authors focus their PR efforts on TV and Radio. TV and Radio are wonderful tools for advancing the author’s name and message. They are a great way to get the author “out there” and help them become an acknowledged expert in their field.
But very little TV and Radio turns into book sales. Local morning shows are perfect for the author trying to get national media and speaking engagements. Local morning TV and radio shows showcase them beautifully.
But in my experience, they do not sell many books.
Readers read. If you want to really move books, go where folks are reading. Magazines, newspapers, newsletter, online, blogs, news sites, etc. These are the sites where a reader sees an author’s potential and message, can write down or click over to the book mentioned and either buy it or file it away for a future purchase.
How many folks in their cars on the way to work can write down an author’s name?
There are exceptions of course! Imus, NPR, Ellen, Oprah… but let’s take a look at some numbers.
Below are some stories and numbers in my recent experience that support my opinion about print and online vs. TV and Radio. Each of the books mentioned below are beautifully designed, appropriately priced for the marketplace, well written and professionally edited non-fiction books. They look like any other book on a bookstore shelf. They are all published by micro-publishers or self-published.
Last year, a New York Times bestselling author/client in my distribution company roster self-published a non-fiction book. He had the pedigree, the press. He was on 60 MINUTES. That week, he sold 113 books. He was on NPR. That week, he sold 121 books. He was in the New York Times and sold 567 books.
Another client of mine was on the 700 Club last month. She sold 3 books. 3. Two months before, another 700 Club guest who was an author in my distribution company sold 6.
I have had over a dozen clients on local morning talk shows this summer. None have sold more than a 21 books that week.
This is not to discourage you from hiring and working a strong PR plan. Just the opposite! Let’s look at a few other numbers.
An author with a personal finance book was in the Roanoke newspaper a few months ago. Sold 57 copies THAT DAY.
Another author (business leadership book) was in the Louisville Courier last week. She sold over 40 books that day.
Readers read. If you are trying to launch your media and speaking career, than please focus on TV and Radio. But if you trying to sell books, please consider an on-line and print heavy focus to start.
Readers read. You’re reading this aren’t you?
For more information and guidance on how to affect book sales, please visit www.newshelves.com or email info@newshelves.com
See how that worked? Couldn’t do that on the TV!
Distributors vs. Wholesalers
What is the difference between WHOLESALERS and DISTRIBUTORS?
A Distributor will sell and promote your books to the bookstores and libraries. They will have reps contact the stores and wholesalers who are most likely to want your book and pitch them the merits of your title.
A wholesaler has a warehouse and is a passive company that will purchase books from you, and then resell the books. They do not pitch your books, they wait and handle incoming orders only.
A distributor also has a warehouse. But they are not passive. They will store, pick, ship, invoice and collect on your behalf as well as handle customer service and most likely offer sales and marketing services as well. They are not your customer, they work for you. You give them money in exchange for the services they do for you.
A wholesaler is your customer. They buy books from you. Some of the bigger ones are called Ingram, Baker & Taylor, Bookazine, Brodart, New Leaf and Quality.
Ingram and Baker & Taylor are two of the largest book wholesalers in North America and they have warehouses all over the US. These warehouse hold book and when a retailer (bookstore or library) asks for a book, Ingram or B&T will send it to them. Both Ingram and Baker & Taylor offer distribution services as well, but only to a certain group of publishers and even though they have the word DISTRIBUTION in their names, they are most likely not distributing your books.
When a bookstore asks who your distributor is, you should be using names like NBN, IPG, New Shelves Distribution, Atlas Books or Book Hub. Ingram and B&T are not your distributor, but the bookstores will be happy to know that your book is available at those wholesalers.
Hometown Book Sales
– By Nicole Riley
Once you have a completed book in your hands, it’s time to get out there and show it to your hometown.
The first step is to be vigilant. The key to direct selling is to look for opportunities everywhere. Very few places will be as excited about your book than the area where you live.
Remember, people in your hometown will be more receptive to hearing about your book than those that have no connection to you. Sell your book to friends from church, work, local bookstores, local places you shop, the local gym. If your town holds any festivals or fairs, rent a booth there to promote your book as a local author. If people from your area like your book, they’ll tell their friends and a ripple effect will form. You might want to volunteer with organizations with whom you identify. Get involved and your customer base will grow. Civic Organizations are often looking for speakers in various topics.
Try not to be scared of giving copies of your book away.
Donating is a great way to build a name in the literary community. If appropriate, give copies of your book to local schools or reading organizations. Those who get a copy of a book for free may enjoy it and recommend that their friends buy it. Some customers may be reluctant to buy a book they don’t know. Word of mouth is a valuable effect of direct sales.
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There are a few suggestions for you to follow when visiting your local bookstore.
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Visit your local store between the hours of 10-11 or 2-5. Avoid busy traffic times such as lunch time.
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Identify the shelf your book may fit on. Is there a section for your category? Is there a local author section?
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Each book store and buyer will have its own personality. It is important to evaluate and adapt to the stores culture before speaking with the person in charge of ordering.
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When dealing with retailers always remember to look and act professional.
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Identify the person you may need to speak with. In Independent bookstores it may be the owner or the book buyer. In a chain store such as a B&N you may want to ask for the Community Relations Manager or the store manager.
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Have promotional material and a copy of your book at your fingertips. Promotional material may include a Sales Sheet or a Press Release. Make sure any material being given includes correct contact information.
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After identifying the appropriate person to speak with introduce yourself as the author, and offer a copy of the book and materials for review. Be confident but not pushy. You will be asked where your book is available. You will need to provide availability and ordering information.
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Ask if the store participates in any type of author events or book signings.
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Ask when and if, following up with them would be appropriate. Making a follow up connection is much different than being overly harassing.
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Be considerate of a store’s right to turn you down, and simply move on to your next location.
Now that you have the basics to selling to your hometown, please do not be discouraged if you are not receiving desired feedback. New Shelves Publishing Services is dedicated to being a resource for you throughout this process. We can sit down and brainstorm ideas that will help you stick to your goals and stay focused. Good Luck!
The Power of Three!
Things you can do TODAY to
increase book sales:
By Amy Collins
Don’t have time or the budget for a large marketing outreach? Use the the power of three to help your book get the attention it deserves:
- Reach out to 3 bloggers and offer to write a guest post based on a subject in your book
- Call 3 stores and ask if they would consider doing a display of your book in October if you gave them the first 6 books free of charge.
- Re-write your Amazon book description to include 3 recent book reviews and media hits
- Set up 3 author events at your local school, library or bookstore
- Contact 3 radio or TV stations and pitch them a story idea around your book.
Watch how the power of three can help increase your book sales starting today!
For more information on increasing your book sales….
Author Tours
Are Author Tours Worth It?
By Nicole Riley
I am often asked if author tours are successful. We are very honest with the folks we have worked with on what a book signing might look like, yet there are still a number of authors who think there is going to be a line wrapping around the building to purchase their books at every event no matter what we say. Although we would love to see that happen, I would like to provide a more realistic view to the process, and help you define the word “successful” for yourself.
Before going any further, I would like to say that this is my opinion solely based on my experience with booking author tours for the last couple of years. I too often receive feedback that an event was just ok, or the author hoped that more people would have attended, or flat out that this was a waste of time! I would like to add that we have had several clients we have booked extraordinary author events for that have had success written all over them! Many of which have used these events to graduate into another phase of their career development.
Before booking an author tour, ask yourself…
- What makes an author tour successful?
- What defines the word success for you?
- What are your expectations?
- Most importantly, what strategy are you using to reach that definition of success in promoting your tour?
- Do you have a publicity campaign going on in conjunction with your events that includes radio interviews or major network television?
- Have you sent a press release to the local newspaper?
- Have you taken out any ads where your event will be taking place?
- Are you promoting your book on your own website?
- Is the store hosting the event promoting the book on their website prior to the event?
- Are you aware of how much a display and prominent positioning of your book would cost without an event?
- Do you want your book to be in a store weeks prior to an event, being displayed when it might otherwise get lost on a shelf?
- Do you want your book to remain in a store and potentially be reordered because of a connection you may have been able to make with the buyer?
- Do you realize that by having an event you give journalists a great reason to write about you?
- Are the amounts of books you sell at your event defining your success?
I think it is very important to think about these questions. In my experience the most successful tours are those that are synchronized with a publicity campaign of some kind. I have seen author tour sales figures range anywhere from 3-100 books at a signing. If you sold 5-10 books at your signing would you deem your event “unsuccessful”? Of course the goal is always to sell as many books as you can, but I think we should remember that these book signings are equally about selling yourself, as it is about selling books. They are a perfect opportunity for you to promote yourself.
Invite anyone who will listen. Word of mouth is powerful! Piggybacking off of my hometown book sales blog post when I said there will be no one more interested in you and your book than your hometown, I believe the same holds true for the start of your tour. I often will refer to this type of an event as a Book Launch Party. A date that is close to your pub date, premiering in a local store, surrounded by family, friends, co workers, etc. are great ways to jump start your tour! I also suggest finding a store that hosts Local Author Festivals. This MAY bring in an extra book sales for you, but if not wasn’t it still nice to meet other local authors in your community while practicing your self -promotion skills? Successful? Only you can answer that.
If an event is not in your hometown, you will not have your local support system. If you have no media hits, and you factor in the genre of your book and pray that you have been able to reach your target audience through telepathic waves, would it be semi-delusional to think that there will be a line of buyers extending out the door? Is that expectation you set to high? For example, let’s say this is your first book, you have no publicity to speak of, and you just drove many miles to be at your 2nd event on your tour. There are 3 lucky shoppers who run into your table by accident and buy your book, and 2 customers who came in to see you because they saw the in store signage last week. Was this event unsuccessful? I guess it would be if you went into it expecting that you were going to sign 50 books that day. Again, what were your expectations? Are you being realistic? I guess my point is that you will get out of your author tour what you put into it! At the same time I say this, there are times where authors are doing all of the right things and the number of attendees is still low. Maybe it was a beautiful day, or it ended up snowing in June…. I don’t know.
So are author tours successful? I believe they most certainly can be. This is your opportunity to meet potential buyers face to face and captivate them and your audience. Plus it adds a personal touch to your book promotion efforts. Not to mention, prior to the author event your book is given free display that without the event is otherwise extremely expensive! Drive a crowd, smile, talk to people, have fun, share the message your book was intended to send. Be realistic and define your own success!
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