(Big 5 Mix Full Article... click here to return to Learning Center Step 2...)
Information & Tips Christian Self Publishers Need to Know to Prepare For Publishing a Hardback / Paperback Book, eBook or Audio Book
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1. Ask for the total up-front cost required to get your book to market: Does the publisher clearly state the TOTAL costs to get your specific book completed and distributed to the markets you want? If not, be cautious. Is there anything else you will have to purchase to get your book ready to be printed, marketed, distributed, returned, updated, removed? Are optional components really optional or are they essential to effectively sell your book? Are there extra fees for your book to be offered via Amazon or Barnes & Nobel, or retailers outside the US? Are the ISBN and barcode included? What about editing? Other?
The Innovo Difference: We clearly state your total up-front cost for every purchase. And our turn-key packages include everything you need to get your book to market. We even show you side by side comparisons of all of our options so you can choose what works best for you. You don't have to guess or worry about hidden charges with Innovo.
2. Ask how the Retail Price is set: Does the publisher require a calculated retail price or can you set whatever retail price you want? Be cautious if you are required to set a retail price based on the company's formula. Would your book be competitive at that price? Ask why they do not let you set your own retail price.
The Innovo Difference: You set the retail price for your book. It's your book and you set your price so long as it covers the costs. Unlike some publishers, we don't require you to set an inflated retail price to make more profit or claim higher author discounts off the retail price. In addition to offering the book through Innovo's distribution network, you can sell your book directly to anyone you wish and through any other process you choose--at any price you choose.
3. Ask how the wholesale price is set: Does the company require a calculated wholesale price or can you set whatever wholesale price you want? Another way to ask this is whether the company requires you to offer a specific discount to wholesalers or resellers like Amazon. Typically, the "trade" wholesale discount is 55%. If you have to offer a 55% discount off the retail price for wholesalers-can you make a profit?
The Innovo Difference: You set your wholesale discount between 25% and 55%. It's your choice-and unlike some publishers who require the standard 55% trade discount, you have the choice and the responsibility. The higher the discount you set, the more likely wholesalers will want to resell your book, but the less margin you will make on each book. At Innovo, we believe each Author should have the opportunity to set the wholesale price as part of their package. The lower limit is set at 25% because many retailers and wholesalers will not agree to carry books with a wholesale discount less than 25%. Of course, the wholesale discount applies only to 3rd parties in our distribution network. You can sell your book directly to anyone you wish at any price you choose.
4. Ask how the printing, handling & shipping costs are set: Does the company tell you the printing, handling and shipping costs they charge you per book printed for Author orders? If so, how much? Once you know the specific trim size and page count, every company should be able to tell you the per book printing and handling costs. One way or another, you will have to pay the printing, handling and shipping costs on each book produced so it is important to know the cost.
The Innovo Difference: You don't have to buy a single copy of your book from Innovo. Not even one. But if you would like to purchase copies of your book we offer them to our Authors at very competitive prices… in fact, we are $5 to 6 dollars less expensive PER BOOK than our chief competitor. That means hundreds or even thousands of dollars in savings over the life of your book. That's it. No hidden fees and no outlandish markups. And we quote the order up front with the exact cost (which will vary based on the shipping options chosen, the type of books-hardback or paperback--page count, etc.). Check out our direct order prices on our web site.
Compare this to publishers who offer authors the option to buy their book at a discount off the RETAIL price-the retail price that the PUBLISHER sets! If the publisher sets the retail price at $30 dollars/book and offers a 60% discount-the author still has to pay nearly $10 dollars for his/her own book! With Innovo you know exactly where you stand on every order. This is unique in the industry and the right thing to do.
It is also important to know that we print and bind every book on-demand. It takes us about 1 minute to print and bind a 500 page book. So there is no need for you to buy books in advance or carry large inventory.
5. Ask what percentage your royalties will be and how they are calculated: first of all, question why the publisher is not providing 100% royalties, given that the author is paying to have the book developed. In addition, ask how the publisher defines "Royalties". Royalties are almost always paid on the wholesale price, minus the printing, shipping, handling and other overhead costs. Royalties are rarely if ever paid on the Retail price (in fact, never in our experience). Based on this, one can begin to see why understanding the Big 5 is so important for every author.
-- For example, if you are offered 100% royalties but you have to set your retail price at $35 when similar books are offered for $14.00-will anyone buy your book given the inflated retail price?
-- Or, if the publisher sets your retail price at $14.00--but you are required to offer a 50% wholesale discount and you are required to pay $6.80/book in printing, shipping and handling costs--you only earn 20 cents per book even with a 100% royalty (e.g., $14.00 - $7.00 wholesale discount - 6.80 P/S/H cost = $0.20).
The Innovo Difference: You receive 100% royalties on net receipts for every book we sell for you to 3rd parties like Amazon or Barnes & Noble or bookstores. Net receipts is the amount of money Innovo receives for sales, minus the costs of returns, manufacturing (e.g., printing), shipping and handling. We encourage you to compare this to anyone in the industry. Many of our competitors only offer 25% to 50% royalties AND they set your retail and wholesale prices. Our philosophy is different: we believe that you are paying for our services upfront so you should earn the royalties when your books are sold.
A Final Note on the Big 5: For-profit companies are in business to make money… and that's expected, reasonable and fine. At the same time, savvy authors should understand the Big 5 mix so that they can make informed business decisions.
Our advice at Innovo: If you cannot make heads or tails about the Big 5 after spending a reasonable amount of time with a potential self-publishing company, politely move on. There may be a reason why the publisher is making this area complicated or hard to understand.
On the Personal Side: Costs & Personal Financial Planning
We at Innovo Publishing welcome the opportunity to partner with you on your self-publishing endeavors, and we'd first like to let you know our financial philosophy.
- If your financial situation is such that you must recover your self-publishing costs in the short-term or face financial hardship, we recommend you reconsider.
- As a self-publisher, you are paying the upfront cost to create your book and there is no guarantee that you will sell enough books to recover your costs. A few people may turn a profit quickly, and you may be one of them, but many take longer or may not make a profit at all.
- Dave Ramsey, a well known talk show host and advocate of debt free living, is one of our heroes at Innovo--check out his web site if you would like to learn more about biblical financial principles and financial peace.
- Please see our Open Letter to Authors on book royalties--Innovo offers 100% Author Royalties, which is our approach to help you profit as quickly as possible from your book.
- Our advice at Innovo: set financial priorities to live life debt-free.
The Big 5 Mix--You Really Need To Know (complete version):
The Big 5 mix: to select the right self publishing company and to estimate the potential profit from your book, you really need to understand 5 key drivers and how they interact: the upfront costs, the retail price, the wholesale price, manufacturing & printing costs and your royalty percentage.
Remember to always think about the Big 5 together-it is the combination of upfront costs, retail & wholesale pricing, manufacturing/printing costs and royalties that tell the story. As you prepare to publish your book, you should know your options and how each publishing company you are considering handles these. Understanding this upfront can save you a lot of headaches later. So with any potential publisher, you should ask at least 5 tough questions:
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Innovo Publishing, LLC is a Christian-based, full-service Christian book publishing company, serving the Christian & wholesome markets. Innovo creates, distributes & markets hardback & paperback books, eBooks (Kindle and Adobe), MP3 & CD audiobooks (audio books) and iPhone & iPad iBooks for Christian self publishers and provides automated order fulfillment through a network of about 30,000 wholesalers and retailers. All Innovo books are professionally edited with custom-designed covers and interiors. Innovo can publish a Christian book in as little as 45 days, and accepts fiction & non-fiction books, business books, & wholesome books for all publishing genres. Among Christian book publishers, Innovo provides unique benefits, including 100% royalties to our authors, who retain all rights to their work.
Innovo Publishing provides a variety of Christian book marketing options for authors including 30-45 second video Previews, 1-1.5 min. video Features, and 2-3 min. video Premieres with distribution to multiple social media and video viewing sites.
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