Quote:
Originally Posted by Harmon
That's not the understanding I came away with the last time this topic was discussed. It depends, of course, on what costs are being taken into account, what money is being paid to the publisher, and what happens with returns.
But from what I was told - or at least think I was told - the book stores were providing money to the publishers in anticipation of sales - i.e., paying something for the books sent to them - and that money provided the cash flow the publishers needed to operate. I have no doubt, as well, that there are some tax aspects involved, allowing the parties to defer income or perhaps accelerate expenses, which will make cash flow different than what it would otherwise appear from merely considering profits or costs.
Perhaps you are in the publishing business & can authoritatively explain that this is not the case.
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The book stores are not paying cash up front, nor are they loaning money to the publishers. I suggest you go read up on the bankruptcy of Borders and the impact it has on publishers. You are obviously not going to believe anything I say about it.
Greg Weeks