Wholesaler Company, group or individual who purchases high volumes of books from
a publisher at deep discounts and sells them to retailers at midlevel discount.
(Before agency pricing, Amazon could sell e-books from Big Six
publishers at deep discounts, taking losses at a rate that Barnes & Noble could never afford to match.
Not exact matches
A standard
deep discount clause looks something like this: «On copies of the Work sold by the
Publisher at a discount of greater than 55 % from the publisher's retail price through channels outside of ordinary retail trade channels, the author will be paid a royalty of 15 % of the Publisher's net proceed
Publisher at a
discount of greater than 55 % from the
publisher's retail price through channels outside of ordinary retail trade channels, the author will be paid a royalty of 15 % of the Publisher's net proceed
publisher's retail price through channels outside of ordinary retail trade channels, the author will be paid a royalty of 15 % of the
Publisher's net proceed
Publisher's net proceeds.»
So - called «
deep discount» clauses let
publishers offer titles to booksellers and wholesalers
at big markdowns.
It seems fair that when a
publisher sells a book
at a
deep discount, the author's take might be reduced proportionally.
When a
publisher offers direct special sales
at deep below - cost
discount, it damages the
publisher's historic partnership with local booksellers.
This creates a situation where it's actually more profitable for the
publisher to sell books
at the
deep discount than just above it, since the reduction in the author's royalty more than offsets the amount of the reduction in the selling price.
A further point others have pointed out is that while book
publishers have to sell remainders
at deep discounts, the price of an e-book doesn't go down with age, as there is no need to get an e-book out of inventory.
My backlist titles are also
at deep discount, but as I said, I would expect that as
publishers are dumping backlist inventory.
According to my royalty statements, 80 - 90 % of the books I'm selling through my traditional
publishers are
at deep discount.
In the past, several
publishers I worked with told me that they were selling books to WalMart
at deep discount.
For all other royalty statements and months, take any month that shows
deep discounting at least half as much as the largest and add a number between.5 and 1.0 to that
publisher cell, based on its ratio to the largest number.
* Let's assume, for the moment, that commercial
publishers suddenly change their contracting patterns to be simultaneously fairer to the authors and more flexible in their own pricing by redefining «
deep discount» to mean «sold
at a price less than 200 % of the actual per - copy production cost established by printer invoice.»
I can speak to actual incidents
at more than one media - conglomerate
publisher — confidentiality requirements keep me from specifying — and some (not all, and quite probably not «routine») Amazon sales are being treated as «
deep discount» in royalty accounting.
Of course, remaindering means that the books will be sold —
at a
deep discount that probably will only cover printing costs
at pennies on the dollar — so the
publisher is getting paid — albeit
at a loss — but the writer is not.
While it's not clear how many
publishers have received similar demands, Amy Rhodes, a partner
at New York trade - publishing consultancy Market Partners International, said, «We have to assume they're looking for
deeper discounts from everybody.»
As a wholesaler, they can do
deep price
discounts on print books because they buy them from the
publisher at a very low price.
Amazon's
deep discounts came
at their own expense, so major
publishers were getting 100 % of what consumers spent on their books.
While offering a broad selection of Steam titles
at discounted prices, IndieGala is an official partner of several renowned
publishers such as Bandai Namco,
Deep Silver, Nordic Games, and Paradox.
A typical art
publisher needs to buy
at a
deep discount so they can sell the art wholesale to a retailer (i.e., a gallery owner).