Tips for Writers
The Economics of Print versus Digital Publishing
By Jerry D. Simmons | March 18th, 2010 | 2 Comments » (Click to add yours!)
Over the course of the past fifty years, the major book publishers of this country have created a system where they have systematically eliminated competition for retail book sales. They have managed to monopolize booksellers by offering an assortment of incentives, fees and discounts that capitalize on their deep pockets and prevent small and niche publishers from finding shelf space for their own titles.
Quality independently published books are having a difficult time finding adequate distribution for the print edition simply because the major houses continue to pour money into the retail sector. They will pay for anything from newsletter placement to author book tours and signings to advertising allowances for anything and everything. This has created a distribution system for print books that grossly limits quality small press titles from competing.
Retailers take a straight 50 percent off the top of every book they sell. Consider a $15.00 trade paperback, the bookstore will take $7.50, distributor will take another 30 percent or $4.50 leaving the independent author with 20 percent of $3.00. If you cannot print enough books to cover the cost of the $3.00 per copy printing then you will lose money on each copy sold. My best guess is that you would need to print roughly 3,000 copies to meet that threshold. The problem is that the quality independently published book rarely achieves a 3,000 copy advanced order.
Now consider the eBook market which is still so new that the major publishers haven’t figured out how to flex their muscles. The distributors for eBooks are not in bed with print publishers, they are digital companies who are willing to give quality small companies a fair chance to sell product. This favors the independent author over print in a number of ways. Plus, retailers for digital content have not set discounts that run standard like the print market because they are all still trying to find a competitive advantage. Another plus that favors the independent author and their eBooks.
Marketing and selling digital content is still faced with the massive problem of how to reach an audience and unfortunately there are no special formulas or secrets that will solve that issue. However, it appears that consumers or digital content are more likely to read about content via social networks, blogs and eBook reviews that are just starting to emerge. My prediction is that marketing for eBooks will start to shift from the traditional methods to more advanced ways of finding an audience through the Internet.
The cost of converting a word document original manuscript to an eBook that is compatible with all formats of eReading devices is a fraction of the cost to produce a quality print book. The eBook market is one where all sales are final which means no returns and no printing costs or warehousing, shipping and handling. Convert a manuscript to an eBook and concentrate on marketing, rather than reprinting and all that goes with that process.
As long as the major book publishers continue to focus on hardcover and trade paper print while delaying release of their eBooks the independent author has a clear advantage. By launching in eBook followed by print, after achieving a significant audience is the perfect strategy for the independent author. The low cost for entry into the marketplace allows more resources to be devoted to marketing which makes digital content the preferred choice over print editions for the independent author.
If you have a print edition and have been discouraged by the process and success, eBooks are not necessarily the answer. You should step back and look closely at your entire publishing program before deciding to move forward with an eBook edition. The emergence of eBooks and the growing market does not mean your content will suddenly find an audience it merely provides another opportunity for sales. In my thirty plus years of publishing experience, the emergence of the digital market is clearly one of the most exciting. If I can help answer your questions about eBooks, please send me an email jerry@writersreaders.com.
Tags: Book Distribution, Book Marketing, Book Publishing, Book Sales, Booksellers, eBook, Hybrid Publishing Model, Self-Published Author, Self-Publishing
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