Distribution, Royalty and Retail price

How do you distribute your book? What about setting the Royalty and the Retail price?

Scroll down for some examples of retail prices and royalty (your profit). For more exact examples per your own book, go to createspace.com – they have an excellent Royalty Calculator where you input the size of your book and then play with various retail prices to see how much royalty they would yield. Similarly, you can figure out the basic cost of printing your book – which saves you doing the math on the Fixed Charges (.07/page for color, .012/page for black & white; cover @ .85 per; etc).

Distribution options through createspace.com / Amazon

  • With Standard distribution, your book can be distributed at Salt River, your own website estore, and by Amazon (USA and Europe). You pay Amazon 40% of your retail price for this option.
  • With eStore distribution, your book can be distributed at Salt River and at your own website estore. You pay Amazon 20% of your retail price for this option.
  • With Extended distribution, your book can be distributed at Salt River, your own website estore, by Amazon (USA and Europe), and by certain retailers and book stores (see createspace for details). You pay Amazon 60% of your retail price for this option.

Are you planning to distribute through Amazon at some point in the future? If so, set your retail price to cover the 40% you will pay Amazon plus the royalty you would like to receive.

Figuring out your royalty and retail price

Below are a couple of charts giving examples of Full-color books and Black & White books of various lengths & prices. You decide on your royalty (how much profit you want to receive) and you decide whether you want to sell at your list price or whether you plan to offer a discount. A decent royalty, in other words, gives you the leeway to sell for less (discount) and yet have plenty to pay your printing costs, the Amazon percentage and any pre-publication expenses (editing, book design, cover design, illustrations, etc.).

Considerations: If your pre-publication expenses are low, try setting your royalty high enough that you recoup your expenses with the first 125 copies sold.

  • Figure out your total pre-publication expenses
  • Divide by 125
  • The result is the royalty you need in order to recoup your expenses

If your expenses are medium/high, this will make your retail price too high. In that case set the price at what you feel is reasonable – and think about offering your book simultaneously as an ebook (Kindle, etc). The ebook income will help you recoup the balance of your hardcopy book expenses.

 

Royalty chart

In the examples below, the Fixed Charges are taken into account. The Royalty is after Fixed Charges are subtracted from the profit margin.

FULL COLOR at createspace.com

The figures given here are approximate only.           “R” means AUTHOR ROYALTY.

Number of pages Trim size Retail price Standard distribution (40% of Retail to Amazon) eStore distribution
(20% of Retail to Amazon)
Extended distribution (60% of Retail to Amazon)
50 8.5 wide x 11 high $25 R = $10.65 R = $15.65 R = $5.65
100 8.5 x 11 $35 R = $13.15 R = $20.15 R = $6.15
100 8.5 x 11 $40 R = $16.15 R = $24.15 R = $8.15
100 8.5 x 11 $45 R = $19.15 R = $28.15 R = $10.15
150 8.5 x 11 $35 R = $9.65 R = $16.65 R = $2.65
150 8.5 x 11 $40 R = $12.65 R = $20.65 R = $4.65

BLACK & WHITE at createspace.com

The figures given here are approximate only.          “R” means AUTHOR ROYALTY

Number of pages Trim size Retail price Standard distribution
(40% of Retail to Amazon)
eStore distribution
(20% of Retail to Amazon)
Extended distribution (60% of Retail to Amazon)
210 5.5 wide x 8.5 high $15 R = $5.63 R = $8.63 R = $2.63
210 5.5 wide x 8.5 high $18.50 R = $7.73 R = $11.43 R = $4.03
210 5.5 wide x 8.5 high $19.70 R = $8.45 R = $12.39 R = $4.51
350 6 x 9 $18.50 R = $6.05 R = $9.75 R = $2.35
350 6 x 9 $21 R = $9.95 R = $14.95 R = $4.95
350 6 x 9 $25 R = $6.05 R = $9.75 R = $2.35

Creative Commons License
ON SALT RIVER Website by AG et al is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License.

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