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POD Math

coins-72714_1280A number of you have asked me about how the math works when you go to IngramSpark for POD.  Here is an example:

A 204 page POD paperback book costs $4.98 to print. (.02 a page plus .90 for the cover)

The book is priced retail at 16.99

Ingram will purchase the book from Ingram Spark at 55% discount off of the retail price.  That will leave you $7.65

Ingram Spark will take the $4.98 out of that total due for the printing and send you $2.67.

Ingram will then take the book that they bought from  you (through Ingram Spark) and sell it to bookstores and libraries at a discount of anywhere from 20% – 42%.

You make $7.65 but have to pay for printing out of that.

Ingram Spark makes $4.98 for printing

Ingram Wholesalers make $2.21 – 5.95  but they have to pay for shipping and handling out of that.  (FYI-If you choose the short discount and only let Ingram offer a 20% discount, you are severely limiting the number of places that will take your book….)

The bookstores and libraries make between $3.40 – $7.13 but they have to pay for employees, rent, lights and the rest out of that.

Does that make more sense?

A number of authors have questioned why they only get to “net” $2 or less in some cases.  I would argue that once the stores and wholesalers pay THEIR expenses, they make a LOT LESS than that!

As long as you are making 11% of the retail price as a net before taxes, you are in good shape! (most established publishers would be thrilled with that)