When setting your Suggested Retail Price [SRP], there are three things to consider, each of which affect the royalties you will earn:
- your actual book price,
- the print cost (determined by number of pages, paper quality and book size)
- and the retailer discount (what the various “middle men” take)
This article will investigate how retailer discounts can affect your book's availability and royalties.
As you may have noted already, the higher the retailer discount (i.e. the more the retailer takes), the lower your royalties will be. At Tellwell we offer two strategies for setting your discount as shown below:
Maximize My Royalties
With this strategy, our top recommendation for most authors, we will apply the lowest possible retailer discount for each print-on-demand distribution channel that still ensures your book remains available through online retailers. These discounts range from 35% to 50%, depending on the platform and region:
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35%: IngramSpark Paperback and Hardcover sales outside the US and Canada
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40%: IngramSpark Paperback and Hardcover sales within the US and Canada
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40%: KDP/Enhanced Amazon paperback and hardcover sales when the SRP is at or above the following minimums:
- USD: $9.99
- CAD: $13.99
- EUR: €9.99
- GBP: £7.99
- AUD: $13.99
- 50%: KDP/Enhanced Amazon paperback and hardcover sales when the SRP is below these same minimums.
By using the lowest qualifying discount in each case, we aim to maximize your royalties while maintaining retail availability.
Note: While we take every step to ensure your book is available for online sale, we cannot guarantee that any specific retailer will choose to list it. As with any product, listing decisions are made at the sole discretion of each retailer. Minimum pricing thresholds and discount policies are set by distribution platforms and are subject to change without notice.
Enroll In Book Returns Program
In order for physical book stores to consider stocking your book, you either need to make your book returnable (book store can destroy unsold copies) and increase your discount to 55%, or deal with bookstores yourself on a consignment basis. We strongly recommend the consignment option paired with selecting one of the Maximize My Royalties distribution strategy above. However a few authors do enroll in the book returns program. There is an additional cost for doing this and your royalties will be held until you exit the program (to cover liability for unsold stock). Your Project Manager will contact you if you select this, and you can read more on this option here.