Retail Margin, Trade Discount, & What it Means for the Author

Written by Brent Sampson

Continued from page 1

Conversely, those authors who long forrepparttar best distribution possible will elect a higher trade discount, even though their cover price will increase accordingly (or their profit will decrease accordingly). Non-fiction or niche-markets are less affected by higher retail prices and greater distribution is often advantageous in finding those markets.

Often,repparttar 143563 author will have little to no say in what trade discount to offer for their books -- its whateverrepparttar 143564 distributor mandates.

Trade discounts can be as low as 20% to successfully get listed on Internet retailers like, who manage to make a profit with such low margins through EDI (electronic data interface) with distributors like Ingram and on-demand publishers like iUniverse and Outskirts Press.

By comparison, trade discounts can be as high as 75% - 80% when dealing with a niche wholesaler, or when attempting distribution for a book that does not have a proven market. In these cases,repparttar 143565 distributor may be paddingrepparttar 143566 coffers a bit in anticipation for a "harder sell" and perhaps, also, in preparation for offering an increased retail margin to closerepparttar 143567 deal.


Industry standards for retail margins are difficult to define because, ultimately, it comes down to negotiation between all parties involved. Publishers haverepparttar 143568 power to negotiate with distributors, who haverepparttar 143569 power to negotiate with retailers, who haverepparttar 143570 ability to negotiate withrepparttar 143571 reader, butrepparttar 143572 typical trade discount is around 55%, which allows for a typical retail margin of 40%.

Publishing-on-demand is removing some ofrepparttar 143573 participants in this little dance, and as a result,repparttar 143574 same piece of pie is being divided among fewer people, resulting in more money forrepparttar 143575 remaining players (especiallyrepparttar 143576 author).

Brent Sampson is the President & CEO of Outskirts Press Publishing at and author of Publishing Gems: Insider Information for the Self-Publishing Writer. Information at

Solutions Online Magazine Announces Second Issue of 2005

Written by Matthew Bratschi

Continued from page 1

Hollander Consultants launched Solutions Online Magazine inrepparttar summer of 2003.

Based in Portland, Hollander Consultants was named one ofrepparttar 143429 top 50 companies to work for in Oregon by Oregon Business magazine,repparttar 143430 chief publication for Oregon businesses.

Hollander Consultants is one ofrepparttar 143431 leading national consulting firms in United States and Canada forrepparttar 143432 combined dentistry, optometry and veterinary professions and usesrepparttar 143433 administrative systems developed by business management pioneer, L. Ron Hubbard.

Hollander Consultants can be found online at,,, and


Managing Editor, Solutions Magazine Director of Public Affairs, Hollander Consultants

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