How do the costs of publishing a book break down?
Dave, where can I find the PERCENTAGE breakdown on the average of what it costs a Publisher to print and distribute hardcover and softcover books. In other words, I am looking for how their broken down overhead costs out in percentage form, based on the total end bookstand price of the book?
And failing that, at least, approximately what percentage of the hardcover and softcover book does printing, shipping, and distribution amount to?
And last, what percentage range of the end bookstand price does the publisher normally pocket for its own share of the take?
To get the best possible answer, I sent off your question to my colleague Gary June, Chief Marketing Officer at Pearson Education's Professional & Technical Group. He was kind enough to find some time in his busy day to field these questions and the following are his "approximate" figures to help shed light on this question...
Typical trade margin ranges between 37% discount and 50%. Most books are 50%, but our more reference titles are typically 37%. Some publishers offer a bit more, others a bit less. Wholesalers work on low single digit spreads. Co-op is another 3-5 pts at most publishers.
You can't just count printing costs, you have to factor in the cost of returns and warehousing. That being said, stand-alone edition costs are in the 15% range, but the biggest problem with trade publishing and the reason it is a single digit net margin business is returns--which can run as high as 40%.
Pearson's warehousing costs are low relative to sales and our competition due to our size, but most publishers they range in the 5-8% range. So......
You can now see why there aren't a lot of people getting into the computer publishing business lately! There are better place to park your capital.
By the way, these are all estimates and the actual figures vary wildly by title and publisher, but they should give you a good barometer.
More Useful The Writing Business Articles:
✔ What's the best option for self-publishing my book?
I have written a book and I want to self-publish, but I am not sure how to choose a self-publishing company. Which self-publishing...✔ How do I get into online writing?
I really want to get into writing online, Dave. Can you offer up some tips and tricks for me to break into this...✔ How do I recover a lost ISBN book number?
I self-published a book in 1983. I would now like to make it an e-book. I do not remember my isbn number. How...✔ How do you avoid writer's block?
I want to get into blogging, but I hear from my friends that it's really hard because after a few weeks you start...✔ How do I get my first novel published when I'm a kid?
I've been searching for some help on this a for about four, five years. I'm 16 years old and I've been writing novels...
Let's stay in touch!
Sign up for my weekly AskDaveTaylor Newsletter and you'll receive even more tech and gadget help right to your inbox, along with exclusive news and industry updates. It's good stuff. I promise!
I do have a comment, now that you mention it!
Check This Out Too...
Look for Answers
All Our Categories
Apple iPad Help
Articles and Reviews
Auctions and Online Shopping
Blogs and Blogging
Building Web Site Traffic
Business and Management
Computer and Internet Basics
d) None of the Above
Google Gmail Help
Google Plus Help
Industry News and Trade Shows
iPhone and Cell Phone Help
iPod, Sony PSP and MP3 Player Help
Kindle Fire Help
Mac OS X Help
Pay Per Click (PPC) Advertising
Search Engine Optimization (SEO)
Shell Script Programming
Tech Support Video Help
The Writing Business
Twitter, LinkedIn and Social Network Help
Unix and Linux Help
Video Game Tips and Help
Windows PC Help
Find Me on Google+
ADT on G+