How You’ll Make Money with Printing on Demand of Hardback & Paperback Books
Your income per each book sold is determined by subtracting various costs from the retail price of each book. The advantage to POD is you don’t have to carry a large inventory of books — they will be produced and shipped as they are ordered. This means that the front-end capital investment will primarily be for marketing your book–which is where it should be–NOT in printing and managing large numbers of books.
Costs include printing, shipping, taxes and various distributor and retailer margins or commissions. The first cost is the Retailer Margin or Retailer Charge (Amazon, for example). This cost is generally 55% of the retail price. The next major cost is the production cost. Production costs vary depending upon order volume, page count and the size and type of book (Paperback vs Hardback, Color vs B&W, Dust Jacket, etc). Basic printing costs range from about $1.95 to $8.00 per book, plus from about $0.015 to $0.20 per page, again depending upon the books’ technical and order specifications. After these costs are deducted from the retail price, we retain a commission of between ten and twenty percent of the balance (depending upon your particular publishing agreement). The net balance after these costs is your net royalty income per each book sold.
For example, say your “Best Seller” book retails for $22.95 each. After deducting the average Retailer Discount of 55% ($12.63), then deducting the per book production cost of (in this case $2 + .015 per page= $ 7.25), produces a Gross Profit of $3.08 per book sold. From that gross, deduct our commission (in this case 10%) or 31 cents.
You would realize a net profit per each book sold (AUTHOR NET ROYALTY) of $ 2.77
Profit from eBooks
Your book can also be configured in eBook formats and then sold through our distribution network (for example, Amazon for Kindle and Barnes & Noble for Nook). At retail, eBooks are typically priced approximately 50% less than printed books. Costs associated with eBook versions of your book are quite different from the standard, printed versions, and vary widely depending upon the retailer involved in the sale. Retailer commission margins range from 30% to 70%. Generally, production cost is approximately 17.5% of retail.
For example, say your “Best Seller” eBook retails for $12.00 each. After deducting the average Retailer Discount of 50% ($ 6.00), then deducting a per book production cost of (in this case 17.5%= $2.10), produces a Gross Profit of $3.90 per each ebook sold. From that gross, deduct our commission (in this case 10%) of 39 cents. You would realize a net profit per each ebook sold (AUTHOR NET ROYALTY) of $3.51
Keep in mind that while eBooks are an option, more than 75% of book buyers still prefer traditional, printed books, so we always recommend that authors publish and release a printed version of their book first.
Personal Sales at Retail
Of course you also always have the option of purchasing your book in bulk quantities to sell directly yourself. In this case you will order a quantity of books that will be shipped to you. You save the retailer discount (Amazon’s charge for example, approximately 55% of retail) and we will not collect a royalty commission. Your wholesale cost will be the production cost plus 10%-25%. The actual cost will depend upon your book’s characteristics (type, size, etc.) and the quantity ordered.
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