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2,614 Views 18 Replies Last post: Oct 27, 2017 5:23 PM by AptosAuthor RSS
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Level 0 55 posts since
Sep 10, 2015
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Oct 21, 2017 3:30 PM

Why isn't Ingram giving bookstores the discount I am offering?

I am discounting my book 40 percent off the $16.99 retail price on Ingram. My understanding is that this is a standard discount for bookstores. (When I sell on consignment, having already absorbed Createspace's printing cost myself, the bookstore pays me 60 percent of the retail price.) Today I learned from a local bookstore owner that Ingram only offers her a 20 percent discount on my book, even though I authorized 40 percent. I will call Ingram about this on Monday, but in the meantime, does anybody have an idea why this is happening?

Level 5 15,714 posts since
May 4, 2008
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1. Oct 21, 2017 3:57 PM in response to: AptosAuthor
Re: Why isn't Ingram giving bookstores the discount I am offering?

Because you need to allow Ingram's cut as well. The industry standard is 55% off RRP: 15% goes to Ingram and 40% goes to the bookstore.

 

 

Michelle

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Odyssey Publishing -- editing, cover design and book formatting services to help you on your publishing journey.

Odyssey Books -- quality fiction and non-fiction -- where books are an adventure!

Level 3 444 posts since
Dec 13, 2011
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3. Oct 22, 2017 9:59 AM in response to: AptosAuthor
Re: Why isn't Ingram giving bookstores the discount I am offering?

Ingram charges $8.06 to print my 564-page novel. Doesn't Ingram make  money when they print my book? I don't really understand why they're  taking more. For what?

 

One division of Ingram is a large, possibly the largest, distributor of books in the U.S. It distributes books from almost every commercial publisher and is where almost all independent bookstores order their book.

 

Another division, the one that Spark is part of, prints books.

 

The distribution division charges all publishers to ship their books, regardless of where the book was printed. In this respect, Spark is just one more printing company, and the distribution division charges separately.

 

Commercial publishers have their books printed wherever they choose and delivered to Ingram (and possibly other wholesalers). Ingram charges them the same way it charges you for distribution. Big publishers' cost per book is lower because they're printed in large quantities.

 

The advantage for an independent publisher is that CreateSpace and Ingram Spark feed the printed-on-demand copy directly into the distribution chain, with no requirement for you to take ownership of printed copies and deliver them to the warehouse.

Level 5 5,650 posts since
Jan 17, 2010
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5. Oct 22, 2017 10:32 AM in response to: AptosAuthor
Re: Why isn't Ingram giving bookstores the discount I am offering?

AptosAuthor wrote:

 

I still don't understand why the 40-percent-off-list wholesale price I set on IngramSpark turns into a 20% discount for my local independent bookseller.

Because Ingram takes their percentage, as noted above, and passes the remainder on to the bookstore. As Lipmag said above, the industry standard wholesale discount of 55% allows Ingram to take their 15% and pass 40% to the bookstore. If you want the bookstore to receive a 40% discount, then you need to set it to 55% in your IngramSpark Dashboard.

 

Sarah
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http://sleepingcatbooks.com
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Level 5 5,650 posts since
Jan 17, 2010
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7. Oct 22, 2017 12:54 PM in response to: AptosAuthor
Re: Why isn't Ingram giving bookstores the discount I am offering?

You can always opt to be your own distributor and supply the interested bookstore yourself (ordering stock from your Dashboard and then shipping it on to the bookstore, or drop-shipping directly from IS to the bookstore). That way you don't have to increase your retail list price, and you can work out the terms directly with the bookstore.

Level 4 2,667 posts since
Jul 2, 2011
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9. Oct 22, 2017 2:52 PM in response to: AptosAuthor
Re: Why isn't Ingram giving bookstores the discount I am offering?

Not to pile on, but when doing your calculations, remember that regardless of whether or not the distributer is you or Ingram, you will be financially responsible for books that don't sell after 30 days.

 

POD looking pretty good now, doesn't it?

Level 2 127 posts since
Sep 19, 2017
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12. Oct 25, 2017 9:51 AM in response to: AptosAuthor
Re: Why isn't Ingram giving bookstores the discount I am offering?

OP, you're discovering the economics of publishing.  Look at it this way.  You're paying Ingram so you don't spend valuable time and money driving around to bookstores, shipping a bunch of small orders to bookstores, billing them, keeping track of what they owe, trying to collect past due bills etc.  In other words unless you're selling a ton of books (enough to have a conventional printer print runs of 10,000 copies or more, which are selling like hotcakes) it'll cost you less to have IngramSpark take care of this for you.  You're already spending a lot of time on publishing, cover design, etc. instead of writing.  And the cost of bookstore distribution is what you pay for the opportunity to have people browse the shelves and find your book while browsing.

That's how I look at it.

Level 0 2 posts since
Jun 28, 2016
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14. Oct 26, 2017 2:31 PM in response to: AptosAuthor
Re: Why isn't Ingram giving bookstores the discount I am offering?

The distributor (Ingram) is making more money that you are.

It will be hard to survive on $2.60 royalty for a $16.99 book.

You have to buy computer ink ($1,000 a gallon, but you buy just a few ounces at a time), paper, internet service, software, a share of electricity, repairs, etc. What's left over hopefully keeps food on the table.

Big traditional publishers can keep their profit margin healthy with massive printings.

An indie can't afford a massive printing.

But an indie can boost profit to a better level by taking Atcharge of distribution.

I used a national distributor for a couple of years. Then I realized I was slowly going broke.

So I set up a vendor account with Amazon.

Then I listed my book as "used" but described it as "new" direct from the publisher.

I listed the book at full new price of $19.99

Then I shut off orders from Amazon and the distributor.

When Amazon sold a book, it notified me to ship it to the customer.

Amazon paid me about 70% of the full retail price, and included another $3+ to cover my cost of shipping to the customer.

Amazingly, Amazon paid me in 14 DAYS (instead of about 60) AND gave me the buyer's home address.

So I received $17+ for my $19.99 book.

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