This is the last part of our series on Why Publishing Costs So Much, written by my colleague, Dave Young. Today we'll look at Variable Costs.
Variable Costs...by Dave Young
Book manufacturing has its costs, too. Book printing is generally done on large printing presses, some sheet fed, others fed by rolls of paper (web presses). They're large, costly to buy, and must be operated by skilled craftsmen. The press occupies space that must be rented, heated, and otherwise maintained even if the press is not operating. Consequently, owners of these large presses try to keep them busy 24 hours a day by selling their services to several customers, just as a restaurant tries to keep its tables filled with paying customers.
A publisher must get in line to use a press. Then, if something delays the early stages of publishing, such as an author refusing to make requested changes, everything downstream of that event is affected. If the publisher cannot get the work to the printer on schedule, the press may sit idle at the publisher's expense. Then the publisher's book is moved to the end of the line, disrupting promotion and delivery schedules. Delays cost money.
In addition to assuming the risks of scheduling, the publisher must pay for several printing costs. Plates must be made. Press time must be paid for. Paper must be ordered in time for it to be manufactured, then it must be stored prior to printing. All of the elements used in publishing a book must be kept track of so that if a second press run is required (don't you wish!) these items can be found quickly and reused. All that costs money.
Printed paper is not much good until it is bound into books. The bindery folds the press sheets into signatures, typically 16 pages of text each. The signatures must be trimmed, then gathered in sequence and sewn (or glued) to the book's spine. (The process is only slightly different for perfect binding used when making paperbacks.) Covers, wrapped around cover boards, are printed separately, assembled, possibly embossed, then wrapped around the signatures.
Large publishers do the book printing and manufacturing in-house. Smaller publishers act as contractors, managing the entire process and farming tasks such as printing and binding to specialty companies in the same way that building contractors hire carpenters, plumbers, electricians, and masons. Like a good juggler, they must have several balls in the air at one time if they're to make a living.
But, we're not done. The finished books must be packed in cartons ($5.00 to $10.00 each) and those books don't just jump into the boxes. Somebody's got to put them in there, seal the boxes, then move them into storage, perhaps in another town, until the books are shipped to the stores, creating more labor and storage fees.
Meanwhile, with the other hand, the publisher is advertising the book to book dealers and taking orders. Advertising in catalogs, which must be printed and distributed, and advertising in space ads, which are printed and distributed by others, all cost up-front money.
Copies of the book are sent to reviewers, who may or may not review it. Still, the publisher must write, edit, and print cover letters to include with the individually packaged and mailed reviewer copies. That mailing must be attractive, and the packaging is unique to the book.
Orders must be solicited from major dealers. That usually means more printing, mailing, and possibly even paid sales staff to call on the dealers.
Major distributors, who fulfill orders to libraries (a large market), must be catered to as well. They will require sample copies for their own review before placing orders. And take a hefty share of the profits for the privilege of distributing each title.
Distribution (fulfillment) will require paperwork to assure sending the right quantities to fill orders, packing slips, and invoicing. Dealer support services may include designing, printing, and distributing sales aids, like signs and flyers.
Returns must be planned for. Dealers accept copies on the condition that after a certain number of weeks they may return the remaindered copies for refund. That's more handling, bookkeeping, and warehousing. On average, 20% of books shipped to dealers are returned.
At this point, the publisher must find ways to unload the returns and unordered copies of the book. Storing them for a rainy day is out of the question; storage isn't free. They may be sold at a price below the cost of manufacture just to free up the warehouse space, which has ongoing costs.
Traditional publishers know the ropes yet they often fail to earn enough from a book's sales to cover the up-front costs. It's a gamble. But, professionals win a few more than they lose so, in the long run, they remain profitable.
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