wastedtime 's Techdirt Comments

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  • On the post: Publisher Realizes Google Books Isn't Evil, But Quite Beneficial

    wastedtime ( profile ), 07 Apr, 2010 @ 08:12am

    Re: Re: Re: Re: Re: They also need to realize...

    Particle board.... hmm. Just a few gases there floating around in your virtuous house.

  • On the post: Kindle Fans Punish Publisher For Delaying Ebook Releases By Giving Books One-Star Reviews

    wastedtime ( profile ), 16 Jan, 2010 @ 12:32pm

    Kindle and books and profit margins

    Sadly incorrect are these assumptions about book publishing, folks. I work in the business. Here are the real numbers. Does it changes the Kindle picture? With technology R&D and actually building the new technology, what happens to the picture?

    Take a standard book that retails for $25.

    Publishers lose right off the top the discount to the retailer, who has to make its own money, which is 40% for independent stores and as much as 60% for the blockbuster chains, Wal-mart, etc. We'll go with 40%. That's $10. We now have $15.

    Pay the author royalty of standard 10% of the retail price ($2.50). We have $12.50.

    Pay the printer and production, maybe $6, depending on the paper, the book's weight, the production values, color, plus costs of shipping from the printer (usually China) plus customs and duty; we're at $5.60.

    Now pay your advertising, staff, commissioned sales reps, capital costs, payroll, taxes, let's say $5 for all of this, we're at $0.60, in other words $0.60 profit.

    Which is why publishing is known to operate on a 2-3% profit margin. Not a business to go into unless you love it.

  • On the post: Kindle Fans Punish Publisher For Delaying Ebook Releases By Giving Books One-Star Reviews

    wastedtime ( profile ), 16 Jan, 2010 @ 12:31pm

    Kindle and books and profit margins

    Sadly incorrect are these assumptions about book publishing, folks. I work in the business. Here are the real numbers. Does it changes the Kindle picture? With technology R&D and actually building the new technology, what happens to the picture?

    Take a standard book that retails for $25.

    Publishers lose right off the top the discount to the retailer, who has to make its own money, which is 40% for independent stores and as much as 60% for the blockbuster chains, Wal-mart, etc. We'll go with 40%. That's $10. We now have $15.

    Pay the author royalty of standard 10% of the retail price ($2.50). We have $12.50.

    Pay the printer and production, maybe $6, depending on the paper, the book's weight, the production values, color, plus costs of shipping from the printer (usually China) plus customs and duty; we're at $5.60.

    Now pay your advertising, staff, commissioned sales reps, capital costs, payroll, taxes, let's say $5 for all of this, we're at $0.60, in other words $0.60 profit.

    Which is why publishing is known to operate on a 2-3% profit margin. Not a business to go into unless you love it.