Ghostwind
First Post
helium3 said:Where'd these numbers come from? Also, how do pre-orders and re-orders affect the profit margin? I thought the margin was set by cogs and distribution and shipping costs. I'm not being critical here, just curious. This is like, the most interesting thread I've read on ENWorld in years.
The numbers come from my weekly sales reports that I get from my warehouse. Preorders determine the amount of product that is printed. The larger the preorders, the larger the print run and therefore the less per unit it costs to print (within a certain margin). When orders drop to less than 350 copies, print costs actually go up which affects your margin because you've already solicited the book at a certain cost approx. 90 days prior. Print too many books and you're sitting on product that won't sell. To give you an idea, I'm sitting on several hundred copies of various Bastion titles that were overprinted because the bubble burst on sales about the time that they came out resulting in a net loss overall. Too many copies affect my margin because of the costs of development (especially layout which runs about $4-$6 per page).