What Does Self-Publishing Have to do with Economies of Scale?

Many writers enter the self-publishing industry with an expectation about what their published book’s retail price will be once it reaches bookshelves. This expectation is based upon their life-long experiences of buying books from authors like Stephen King and J.K. Rowling.

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They are often surprised and confused when they discover that their 300-page self-published print-on-demand paperback cannot have the same retail price as a paperback of comparable length that is published by Random House. “Why?” they ask.

The answer is because the retail price must be higher than the sum of the trade discount (typically 50-55%) and the production/printing cost of the book.  Why are POD printing costs so much higher? The answer is: “economy of scale.”

Wikipedia has a fairly extensive article on economies of scale that can be found here:

https://en.wikipedia.org/wiki/Economies_of_scale

Most important among that information, as it pertains to self-publishing authors, is the following paragraph:

“The simple meaning of economies of scale is doing things more efficiently with increasing size.[4] Common sources of economies of scale are purchasing (bulk buying of materials through long-term contracts), managerial (increasing the specialization of managers), financial (obtaining lower-interest charges when borrowing from banks and having access to a greater range of financial instruments), marketing (spreading the cost of advertising over a greater range of output in media markets), and technological (taking advantage of returns to scale in the production function). Each of these factors reduces the long run average costs (LRAC) of production by shifting the short-run average total cost (SRATC) curve down and to the right.”

Basically, the more books that are printed at one time, the less expensive each individual book is to produce, which thereby allows the retail price to be lower. This is why a Harry Potter paperback is “inexpensive”, even at 600 pages, compared with a POD book of similar length. The publisher of Harry Potter printed 10 million copies all at once, thereby bringing the per-unit cost down to pennies. Of course, the publisher also made that sizable, risky, investment up-front – an investment that equaled millions of dollars.  Granted, that’s not much of a risk when you’re printing a Harry Potter book, but for 99% of the writers out there (even the ones who have traditionally published in the past), it is a risk few traditional publishers are willing to take nowadays and an investment even fewer writers are capable of.

Enter print-on-demand (POD) self-publishing. A book that is published POD operates on the exact opposite pricing model. Each book’s printing cost is based upon printing only one book at time, which protects the authors from making a sizable, risky investment up front.  Of course, that means the printing cost for each book costs dollars instead of pennies. And since the retail price must exceed the trade discount AND the printing cost, the retail price is naturally going to be higher.

The good news for Outskirts Press authors is that, when combined with EDI distribution through platforms like Amazon and Ingram, self-publishing writers never incur out-of-pocket printing costs for books sold wholesale, because the book is only printed after it is sold to the consumer. The printing cost is extracted from the retail price, along with the distributor/retailer’s portion, and the printing cost itself. Whatever is left is the “profit” from the book. The amount of “profit” that the author receives depends upon the self-publisher you’ve chosen, and varies from 20% – 100%. Outskirts Press is one of the few self-publishers that pays 100% of the profit to the author.

To publish your masterpiece with the A+ rated and #1-rated self-publishing company according to the Better Business Bureau and Top Consumer Reviews, respectively, visit Outskirts Press today.

Amazon Kindle e-Book Publication Now Included With All The Best Packages At Outskirts Press

Self-publishing with Outskirts Press  just got even better. Now when you publish with any of our best, most popular full-service a la carte or One-Click publishing packages, an Amazon Kindle e-book edition of your book will be published & distributed on your behalf for free!

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The non-fiction, fiction, Christian, and spiritual One-Click packages have always included the Kindle e-book edition (and some of them include the Barnes & Noble NOOK, as well).  Now joining them with an included Amazon e-Book edition are the One-Click packages for Children, Cookbooks, and Memoirs.  You can browse and compare all eight of the available One-Click, all-inclusive publishing suites by clicking here.

What makes this announcement so exciting is the inclusion of the Amazon e-Book edition to our most popular package, the Ultimate Black and White, which already includes a bevy of options and add-ons; and now adds the most popular e-book publishing service, as well. Even the Basic Black and White package now includes free Kindle e-book publication & distribution! The Full-Color publishing package follows suit, which is a particular boon for longer color books where the paperback or hardback retail price might be fairly high, but the e-book price can typically fall under $10, regardless of length.

So are you ready to publish your masterpiece (and your free e-book) with the A+ rated and #1-rated self-publishing company according to the Better Business Bureau and Top Consumer Reviews, respectively?

• Call 1-888-672-6657.
• Live chat at OutskirtsPress.com.
• Schedule a free consultation with a Publishing Consultant.
• Or start immediately by browsing all our available publishing services by clicking here.

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“My first book and the experience was great. My Author Representative was right there with any answers that I needed. A big tip of the hand to my line editor who was a huge help. Would I do it again? I already am, with plans for my next release. I will absolutely use Outskirts Press again, and hope I get the same team. Again, thanks.”Bob Kyle, author of The Hogger

Reach the whole world – all at once – with Outskirts Press distribution

If you could go anywhere in the world right now, where would you go? What if you could simply travel anywhere you wanted? Imagine the sights and sounds, the incredible locations and cuisine!

Now imagine you could send your book all over the world. All those amazing places you’ve just imagined—and now your book is there! With Outskirts Press, worldwide distribution of your book is no longer a dream, but a reality!

Outskirts Press boasts the most extensive distribution in the industry! You’ll enjoy the luxury of a worldwide market AND circulation of your book with celebrated names, such as: Barnes & Noble, Amazon, Baker & Taylor, Ingram, Bertram and more!

Once you choose to self-publish with Outskirts Press, you can count on us to handle all the thorny details of book distribution, like setting up with each distributor, foreign taxes and more. And the best part is that no matter where in the world customers buy your book, you’ll enjoy 100% of your royalties — no small print, and no strings attached!

Need help getting started? Connect with Outskirts Press now in whatever manner is easiest for you:

 

Self-Publishing on a Budget? We’re Here For That

If you’re watching your wallet as you dive into self-publishing for the first time and are feeling a little self-conscious over that fact, don’t worry! You’re definitely not alone. In fact, many authors pursuing publication today are constrained by tight finances, or balancing a variety of different concerns. That’s why, at Outskirts Press, we work hard to make sure all of our publishing packages and services are accessible to everyone, including you.

Looking for flexibility? We allow payments through PayPal and by credit card, allowing you to take advantage of the financing options these resources create. Check out PayPal’s 0% interest options with flexible terms, or inquire if the credit card companies you’re already using offer extra points when paying for a publishing service. (Many do.)

Or, if you’re looking for something even more tailored to your situation, we offer our own 0% financing payment plans! Simply get on the line with your dedicated Publishing Consultant, and together you’ll develop a monthly payment plan that balances your financial situation with your desire to publish. This option is particularly useful for first-time authors looking to break into the world of indie publishing!

And last but not least, we offer bundled services, such as our One-Click Publishing Packages, special discounts and promotions to assist you in finding and affording the absolute best in publishing and marketing services. After all, just “getting by” isn’t good enough when we’re talking about your masterpiece. Getting it “just right,” with professional editing and an eye-catching cover design, is an important part of making sure your book becomes a success!

For more information on financing options or Outskirts Press self-publishing promotions, call us at 1-888-672-6657 to speak with a Publishing Consultant. You can also visit our website at www.outskirtspress.com and chat with a Publishing Consultant via the live chat option.

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