Pricing eBooks for Library Distribution

[twedigteam]

Curious about where everyone stands on this from the publishers standpoint:

Since a title (or a copy) is distributed to many different readers over time, is it suitable to price an eBook title higher than one would for standard retail distribution? How does this work in print, and can we even compare the two formats?

In a brief amount of research, I've found reports really range, from going off the hardcover list price all the way up to 300% of the print copy (wow).

Obviously an interesting and ever-evolving topic for debate.

[Todd Young]

I might be wrong, but I thought libraries had to pay the publisher a small amount each time a book was borrowed.

[barb2cats]

In the U.S., libraries do not pay a per use fee for the paper books.

I do not know if libraries can purchase at a "library discount".

I do know that some hardback books are purchased from publishers at 'regular' retail; some are purchased with 'library binding' which I believe costs more than the regular retail cost.

Paperbacks, I believe, are purchased at retail cost.

It has been a long time since I was involved with purchasing books for a library.

[elizilla]

If you have ever lost a library book and had to pay for it, you pay a lot more than retail.

DAMHIK,IJK,OK?

[HarryT]

Originally Posted by Todd Young

I might be wrong, but I thought libraries had to pay the publisher a small amount each time a book was borrowed.

They do in many countries - it's called the "public lending right" (PLR). But it's not paid to the publisher; it's paid directly to the author. In the UK it's a little over 6p (US 10c) per loan.

[Ron.]

Originally Posted by HarryT

They do in many countries - it's called the "public lending right" (PLR). But it's not paid to the publisher; it's paid directly to the author. In the UK it's a little over 6p (US 10c) per loan.

I like that, wish they had that in the US.

[HarryT]

Yes, I think it's a good idea, too. It's not a "blanket" payment. It's capped at about £3000 a year for a given author (so popular authors don't make a fortune from it) and it's only paid to authors who are EU citizens (so, for example, Steven King doesn't get paid by the British PLR no matter how popular his books are).

[Leep]

There was talk earlier this year that Overdrive was capping the number of lends on each ebook at 26. After that, the library was required to purchase another copy to continue lending. Not sure where this went, or whether this was just for the U.S. public libraries.

cheers

[HarryT]

Originally Posted by Leep

There was talk earlier this year that Overdrive was capping the number of lends on each ebook at 26. After that, the library was required to purchase another copy to continue lending. Not sure where this went, or whether this was just for the U.S. public libraries.

cheers

It wasn't Overdrive themselves, but one specific publisher - I forget who.

[Ron.]

Originally Posted by HarryT

It wasn't Overdrive themselves, but one specific publisher - I forget who.

Harper Collins

[vulcan_girl]

Originally Posted by barb2cats

In the U.S., libraries do not pay a per use fee for the paper books.

I do not know if libraries can purchase at a "library discount".

I do know that some hardback books are purchased from publishers at 'regular' retail; some are purchased with 'library binding' which I believe costs more than the regular retail cost.

Paperbacks, I believe, are purchased at retail cost.

It has been a long time since I was involved with purchasing books for a library.

The libraries I have worked at generally purchase at a library discount for the Big 6 books through distributors Ingram or Baker and Taylor. Smaller and university presses were not discounted that much, if at all. I was happy when I worked there, because I could take advantage of that discount, which was 40% off most books, paper and hardback.

[Andrew H.]

Originally Posted by vulcan_girl

I was happy when I worked there, because I could take advantage of that discount, which was 40% off most books, paper and hardback.

Was that basically the wholesale cost?

[vulcan_girl]

Originally Posted by Andrew H.

Was that basically the wholesale cost?

I'm guessing that it was, because Ingram and B&T are distributors, and they are who my local indie bookstores purchase from.

[Skip Wyona]

Originally Posted by barb2cats

In the U.S., libraries do not pay a per use fee for the paper books.

I do not know if libraries can purchase at a "library discount".

I do know that some hardback books are purchased from publishers at 'regular' retail; some are purchased with 'library binding' which I believe costs more than the regular retail cost.

Paperbacks, I believe, are purchased at retail cost.

It has been a long time since I was involved with purchasing books for a library.

I don't think things have changed much. Most books are discounted via third party book sellers like Baker & Taylor but only for trade versions. 'Library binding' versions, which are supposed to be sturdier, are perhaps sold at a 5% to 15% discount off retail price. And many other books are not discounted at all from publishers and if they are library bindings, cost more than trade retail. Paperbacks are usually heavily discounted except that many libraries buy library binding hardback versions that are more expensive. And of course you need to add the cost of processing and cataloging. Most libraries buy this extra service from book sellers. In all, the total cost of an individual book to a library is usually more than the retail price.

[twedigteam]

I suppose when we consider the higher cost of an individual title to a library is a result of:
- More frequent use (or sign-outs, which is of course, aside from the Harper Collins 26-use cap)
- Processing and distribution costs
- Royalty considerations

These factors can also be applied to eBooks. I think a slightly higher price than retail is acceptable for electronic texts in terms of library distribution, in the area of 10-15%.

Reactions to this, publishers, librarians and retail booksellers?