I’ve just been speaking to IngramSpark [Australia] and discovered that Ingram only charge for the actual print cost of a paperback!!!!
-dance-
No idea why that’s such a big deal?
Allow me to explain. π
When you print [and sell] your paperback through KDP, your royalty is calculated as the difference between the sale price of the book and two things:
- the print cost
- the cost of distributing [i.e. selling] through Amazon
Amazon’s distribution cost will always be 40% of the List Price [the sale price], but the print cost will vary depending on what, and how, you print. For example, black & white costs much less than colour.
To explain how distribution and print cost affect royalty, I’m cheating a bit and taking the next bit straight out of my KDP how-to book:
Royalty = (List Price β 40% [to Amazon]) – Printing
Or to put it another way, when your paperback sells on Amazon:
- Amazon takes its share – 40% – from the total sale price,
- This leaves 60% of the total sale price.
- From this 60%, Amazon takes the actual print costs.
- Whatever is left over is your royalty.
To illustrate this point, letβs say the List Price of a book is $10 and the print cost is $5.
- From that $10, Amazon takes $4 – i.e. 40%.
- That leaves $6.
- From that $6, Amazon takes $5 β i.e. the cost of the printing.
- That then leaves $1 as the royalty owed to the author.
Β [10 – 4] – 5 = 1
Note: back when you had the option of selling your paperback directly through CreateSpace, the cost of selling through CS was 20% rather than the 40% owed to Amazon, but there was still a charge.
Knowing how Amazon and CreateSpace calculate royalties, I assumed that IngramSpark must have a distribution cost factored in there somewhere as well. But they don’t, and I couldn’t be happier! IngramSpark will distributre your paperback worldwide without charging for the distribution. All they charge is the print cost. Suddenly, the setup fee and the revision fee don’t feel so bad any more.
Until I see exactly how Amazon and IngramSpark function together, I won’t be completely sure of my figures, but I am now itching to try it and see. And of course, you’ll be the first to know what I’ve learned. π
cheers
Meeks
September 21st, 2018 at 7:31 pm
A KDP paperback would sell through Amazon. Where would you sell an IngramSpark paperback? I’m not familiar with how the sales and distribution works with IS. 40% is a big chunk of the price to hang on to.
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September 22nd, 2018 at 8:37 am
lol – sorry, I didn’t mention that IngramSpark supplies pretty much all the bookstores and libraries around the world [English speaking ones at least].
We tend to think that Amazon is the biggest retailer in the world, but Ali Baba, for example, is bigger [in Asia]. And IngramSpark, as part of Lightning Source, is the biggest Western print book manufacturer.
I don’t have experience of this myself, but in /theory/ independent bookstores buy through Lightning Source [aka Ingram]. Therefore, if Indies offer the same terms as the big publishers, the independents /may/ buy Indie books.
That’s my hope. π
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September 20th, 2018 at 12:49 pm
WTG, Meeks! π
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September 21st, 2018 at 7:13 pm
lmao! FTW. π
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September 19th, 2018 at 11:36 am
Good luck! I’m looking forward to trying that too.
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September 19th, 2018 at 4:38 pm
So far so good. π
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September 19th, 2018 at 11:20 am
Yes, thanks for leading the way for us all with a big torch that simplifies everything π
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September 19th, 2018 at 4:38 pm
-grin- you guys are my tribe. π
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September 19th, 2018 at 11:01 am
Thank you SO much for willing to be on the “bleeding” edge with all this change. You are wonderful.
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September 19th, 2018 at 4:39 pm
Um…thanks? Seriously though, just paying it forward. I received a huge amount of help from experienced Indies when I started so… π
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September 19th, 2018 at 10:50 am
Hope it all works out in your favor. Hugs
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September 19th, 2018 at 4:40 pm
Thanks Scottie. To be honest, I’ll be happy if I just manage to have my paperbacks available here at home.
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