LM_NET: Library Media Networking
I received many interesting responses to my query:
>>This morning in the library there was a discussion about 3 Rosemary Wells
>>books that were at Costco. One teacher stated that she had heard on the
>>radio that the author does not get any money on his/her books that are sold
>>in Costco. Is this true?
Thank you very much to all!
*******
Hi, I am an author (Hopscotch Around the World, Christmas Around the World -
Morrow Junior Books).
In answer to your question. If the publisher sells the book to anyone - the
author gets a percentage of the sale. There is usually a clause in the
author's contract about books sold overseas, or if the book goes out of
print. As far as I know the book sale should generate the same per cent for
the author at Cosco as it will at Barnes & Noble.
When a discount house buys books they probably have no return privilege - as
bookstores do. (Wouldn't it be nice if as librarians we bought books - and
if they weren't popular we could return them?) Well, bookstores do have that
privilege. I would imagine that the discount to a very big purchaser like
Cosco might be as high as 50 or 60 % -- but still the author will get her
percent.
When I make an author visit the libraries receive a 40% discount - and can
return any books not sold at the school. So you can see what discount would
be offered to a bookstore or discount who purchases hundreds and thousands of
books.
The % for an author is usually less than 10% of the sale price of the book --
therefore you don't see many rich authors - unless they hit the very high
sales bracket as Dr. Seuss, or the goosebumps guy.
Hope this helps.
Mary D. Lankford
*******
Costco (and even in Calif. it is Costco now) buys from wholesalers or from
the publishers just like anyone else. They are not selling remaindered
merchandise. I once had a teeny tiny book business, and learned enough about
the discount structure on books to see how Costco and similar outlets can
make their necessary profit (small, but on large quantity) even at the 40%
discount from list that they offer. I suppose it is conceivable that the
author's contract has a clause about reduced royalties on certain types of
sales, but I find it exceedingly improbable that ANY author in his or her
right mind would simply give up royalties on sales through discounters.
Ask the teacher who is making that claim exactly where he or she heard the
assertion -- and then track back through THAT source (if any can be cited).
If it is true and he/she can document it I'll give $100 to your favorite
charity. I'm wagering that the assertion is a baseless rumor.
Ken Umbach
*******
I don't know in what context the discussion you heard on the radio was but
authors recieve royalties on all books thay sell in any retail outlet.
Each author makes the deal with their publisher and may recieve more or
less royalties depending on the agreement .
One instance in which an author does not recieve royalties is when a
stripped ( without the cover) paper back book is sold. Yoiu should never
buy them or accept them as donations. The fruit of the author's labors is
stolen
Lisa Von Drasek Bank Street School for Children
*******
I'll give you an opinion based on my previous experience in the
publishing field. The contract the author signs with a
publisher spells out exactly how much profit he/she gets from
every book sold, as well as foreign rights, movie rights,
audiotape rights, etc. I don't ever remember a contract that
gave no money to the author for sales to discount places, but
the royalty typically is lower, for 2 connected reasons: the publisher is
selling at a higher discount (thus less profit to share) and
more copies are being sold to the discount place than to usual
retailers, thus the higher discount in the first place. So,
while not knowing for sure in this case, I would say, it is
incorrect to say that authors do not get any money from books sold at
Costco (I buy materials for my library there, too!). They might
get less money, but in all actuality, many who purchase books
there might not not usually buy books anywhere else, so it
might be _more_ money for the author! (Days like today make me
wish I was back in publishing!)
Susan Morris
*******
As far as I know, the author receives money from the publishers, they
have no say in where their books are sold. As a former retail bookstore
person I can tell you that huge warehouses like Costco and Price Club
purchase in such huge quantities that they can receive tremendous
discounts from publishers. This is why you have Barnes and Noble
Superstores and Borders proliferating and crowding out the smaller
independent books stores. Eventually the fear of the bookstores is that
Costco and Price Club will even be able to force THEM out of business.
Meanwhile, the rest of us either benefit from membership in the
warehouse stores to stock the more popular titles at discount prices or
depend upon the independents to get the selection of books we really
want. So, I guess to answer your question, no the author gets no money
from Costco but they receive their royalties and money directly from the
publisher who published their book.
Maureen Meyer
*******
My own opinion, based on no outside data, is that Costco buys what they sell
from various wholesalers. I would guess the author gets whatever rolalty
they deserve, based on how sales are made from the publisher.
Helen Sternheim
*******
In response to your posting: Costco and Sam's Club and such are able to buy
parts of print runs on publications. They contract to buy, for example,
100,000 copies of Shel Silverstien's "Falling Up" at an 80% discount. That
is how they can afford to sell them at a 60% discount. Yes, the author does
get less of a royalty on that sale than on the sales of single copies to
libraries and small purchases to say Ingram or Baker and Taylor. They also
get a break by buying on a non-returnable basis as opposed to Toys 'R Us who
returns as soon as a the sales of a title drop off. There are many nuances
to the publishing industry that librarians as a group are unaware of.
Certain author's (or their agents) stipulate within their contracts how the
books are to be distributed. I hope that this helps to answer your question.
Amy
*******
I do not know about book sales but I do know about software sales and
I would think that the "rules" are probably the same in both
publishing industries. When I allow a publisher to publish my
software he agrees to pay me a royalty based on what he receives from
the sale of the work. So if he sells it directly to the customer at
full retail price I get a fixed percentage of let's say $20.00. If he
sells it to a dealer at a discount of say 50%, I get my percentage of
$10.00. If the program becomes really old and no one wants it and he
dumps it to a discounter and sells it to them at 75% off, then I get
my percentage of $5.00. In other words, I always get something but
what I get depends on what the publisher gets.
Jean Lowery
*******
I have purchased books at Costco/Price Club (they have merged) because of
their great prices. I think that they have to get their books at a
distributor or from the publisher just as any bookstore or jobber would.
They probably bargain for quanitity discounts and pass them along.
Originally, these places were set up for businesses to purchase items for
resale, but along the way opened up to consumers.
Personally, I think they're great.
Michele Pozner
*******
+*+*+*+*+*+*+*+*+*+*+
Sara Miller, Media Specialist
Wascher Elementary School
Lafayette, Oregon
millers@mail.yamhillesd.k12.or.us
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