Wholesaler or Distributor - Which One Do You Need?

bookstore

Barnes and Noble wants to purchase copies of a new book written by a friend of mine. Great news, right? The only problem is that they want him to go through a wholesaler or distributor in order to get the books into their stores. They sent him a list of companies that they are working with so that he could select one. This led to a discussion about the differences between a wholesaler and a distributor.

In a nutshell, using a wholesaler enables publishers to get their books into most traditional bookstores, online retailers and libraries. They essentially receive and process orders. The wholesalers keeps supplies of books in their warehouses and mail them to retailers and libraries.

On the other hand, a distributor gets books into the hands of wholesalers in addition to bookstores, online retailers and libraries. Distributors also handle the storage and shipment of books. Additionally the distributor employs a sales staff to assist in the marketing efforts of its publishers. Unlike wholesalers, distributors often require an exclusive arrangement from their publishers.

So how do these two entities make their money? Wholesalers make their income by buying books from publishers at a high discount and selling them to their customers for a slightly lower discount. A wholesaler may require a 50-60% discount off the list price of the book, which means the publisher receives 40-50% of the list price. In turn the wholesaler may allow bookstores 40-45% off the list price. Libraries may be offered 20-33% off list price.

Book distributors derive their income by taking an overall percentage (normally 25-30%) of the retail selling price. That may work out to 67% off the list price, leaving the publisher with 23% of the list price.

Both of these result in less income per book for the publisher. Because distributors are doing some marketing of the books, the publisher realizes less income in that arrangement than a wholesaler agreement. So does it make sense to enter into one of these agreements? If your book is of regional, national or international interest, you may want to consider these options. Many bookstores will not deal with individual authors or publishers, so if you want your book(s) in bookstores and/or libraries you may have no choice. While you are giving up a pretty substantial portion of list price on each book, using a wholesaler or distributor opens up many new marketing opportunities for you. Additionally they deal with getting the books into the markets, billing and collection of any moneys due, and shipment of books. Trying to do all these tasks on your own can be overwhelming.

As with all things in this brave, new world of publishing do your research on the companies before signing any contracts. There are a lot of unscrupulous folks trying to take advantage of authors and publishers right now.

The Big Read

Tomorrow is The Big Read in St. Louis, a free festival designed to inspire people to pick up a good book and read. Authors will be signing their books and doing readings, the St. Louis Publishers Association will give a presentation on how to publish your own book, story book characters will roam the crowds and other entertainment will be provided. There are also booths displaying their wares, and the St. Louis Publishers Association offers the opportunity to its members to have their book(s) available for sale. I had volunteered to help staff the booth, and also will have copies of my book "Who's Been Sleeping in My Bed(room)? Researching a St. Louis County, Missouri Home" in the booth.

One of the things you always have to be thinking about as an author, particularly a self published one, is marketing your book. I try to be on the lookout for unique opportunities to find readers. Because my book definitely has a niche market, traditional book stores are not where I find my buyers. Instead I have been more successful in selling through specialty shops such as the Webster Groves Historical Society and St. Louis Genealogical Society stores, and the Missouri History Museum gift shop.

Because The Big Read attracts educators and libraries from across the area, I'm looking forward to being able to talk up my book. Unlike some authors, I welcome the chance to have my book in the libraries. Because it is set up in a work book fashion, I think library patrons will want to go out and buy their own copies once they have a chance to see the book.

If you are a self published author, I encourage you to seek out these alternative marketing venues.

Another Black Mark Against the Printer

Bright and early this morning I sat down with all the books and flipped through each and every one looking for the dreaded black streak. I was dismayed when 3 of the first 5 books I picked up had the marks. By the end of the stack I had a pile of 41 books with the streaks. That means that nearly half of the second printing of these books were damaged! Where was the quality control?

There are also 3 books where the printing on the binding wraps around to the front of the book. I believe these books were the printers try at convincing me that the wave problem was due to my selection of a 70 lb weight paper. I think they used 60 lb on those 3 and so my binding was too wide. Yeah, let's throw those in the box and make her pay for them as well. Needless to say 44 books are in a box to be returned. Or refunded. I haven't figured out what my next step will be. I placed a call to my production mis-manager yesterday to give him a head's up on the issue. We played phone tag today.

In the meantime, I called another local printer that my friend has used for all of her books. (Duh - why didn't I ask Edna who she used in the first place!) I gave him the specifications on the book and explained the issues I have been having with my current printer. He will get back to me with a price. I want someone else lined up before I need to reorder books. No way Black Mark Printers will ever get my business again.

Because I like things to end on a positive note, I'll report that the St. Louis County Library ordered a book today. I think they will order additional copies once they have an opportunity to see what the book offers. I also dropped off a book at the St. Louis Genealogical Society for their review. If they think it is a good fit, they'll carry it in their store. I told them to keep the copy for the on-site library once they are done with the review. My last stop was to my local library. I am donating a copy to them, and need to drop off 8 additional business cards Thursday morning. The Municipal Library Consortium, made up of 9 independent libraries in the county, is meeting in Webster Groves Thursday. Tom, our director, will pass out my business cards and show them my book at the meeting.

Approaching the Libraries

I have become friends with Tom, director of my local library, through a local writers group on Facebook. I stopped in the library this morning to show the book to him, albeit a copy still stuck on doing the wave, and asked his advice on my next step to getting it into libraries. He admired the book, and recommended that I downplay the helpful forms section of the book. Libraries don't like those as people tend to, well... write on the forms.

He suggested coming up with a flier describing the book, and listing any quotes from reviewers. The fliers can be left behind with any libraries I visit, and can be mailed to those I can't get to personally. He also asked where my invoice is. I'm pretty sure I gave him a "huh?" look. He said I'll need to leave an invoice with the book at each library. Okay, another item on the "To Do" list. It sounds as though I will need to approach each of the libraries within the Municipal Library Consortium of St. Louis County separately. Darn it! I was hoping they had a central buyer of books. St. Louis County Library is on my hit list, of course. But Tom advised me to also contact St. Louis City Library. He is confident they will want more than one copy of the book for their branches.

On a different note, the Book House, which sells new and used books in St. Louis, heard about my book and wants to carry copies. In an email, the owner asked what discount I am offering to bookstores. Yet another "huh?" moment for me. I thought the bookstores would have an agreement waiting for my signature. I'll do some research and talk with other authors to see what is fair to both parties. I don't want my naievete to get me screwed with the other retailers.