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So You Think Your Book Belongs in a Store?
It is every writer’s dream to see his or her book in the front window of the local bookstore. It is fun to imagine tall, colorful stacks of your books surrounded by throngs of curious readers flipping through the pages while others rush to the cash register with their copy. Feel free to continue this fantasy as you pound the keyboard, but if you’re interested in turning the vision into reality, then stop writing for a moment and read on.
The Four Questions You Should Ask Yourself Before your Finish your Book:
1. At what retailers do your readers shop?
Are you SURE? (Don’t guess – go to those places and make sure.)
Too often, I find myself assuming that I know something to be true because I believe it to be true. Things that used to be fact a few years ago may not be anymore… but I forget to take that into account. I have learned the hard way that before I make any plan that involves other people or money, I need to CHECK to make sure that what I THINK is actually SO.
2. Do those retailers buy books like yours?
Are you SURE? (See above)
3. How many of your types of books sell each week?
If you are going to be looking for a publisher or publishing yourself, you need to know what books like yours sell for. You also need to know how many units sell each month. That data will be KEY when presenting your book to an agent, a publisher, or a retailer. “I want to sell a million copies” is not a sales plan. It is a fantasy. If I told you that business books helping managers become better leaders only sell 23 copies a month at one of the major airport bookstore chains, what does that do to your financial plan? You NEED the facts to make a solid plan… data, not wishes makes for a successful book.
4. Is your book as good as the ones already there? (Be honest and really LOOK at what is on the shelves already)
- Is your cover as good as the ones on the shelves?
- Are your priced competitively?
- Does your book offer something new to the market?
- Do you have the amount of reviews and endorsements that the books on the shelves do?
- Are you going to spend the same amount of money on promoting your book that their publisher did?
- Do you KNOW what the author and publisher did to promote their book and are you able to give it a similar amount of time and energy?
- Do you have several good reasons why a buyer should risk their profit margin on an unknown author or book when they have proven successes already on their shelves?
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….
D5 Creation