Thread: Now that's a business model...
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Old 11-27-2010, 09:03 AM   #12
Kali Yuga
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Quote:
Originally Posted by abookreader View Post
Pricing seems to be the hot button topic with them, but what they really need to scrutinize is profitability and why they can't turn a profit on a book that sells 10000 copies, when a smaller Publisher would not only turn a profit, they'd consider it a success.
Most of it is the advances.

At a big pub, the author may demand (and get) a $300,000 advance. A small publisher's advance could be $100,000 or less. That right there slashes the up-front budget costs by $200k.

The rest of the difference is probably advertising. A big pub that expects to sell 60,000 copies is going to spend more on ads than a small pub that expects to sell 10,000.

All the other costs should be roughly comparable.
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