peapodgrrl
baba-prague said:Thanks for starting this thread, and for the very comprehensive work you've put into your post - great stuff!
I'd only add two small points. One is that we should also mention distributors. Distributors are not the same as wholesalers, although the two are often confused by people. A wholesaler merely takes your publication and sells it on to retailers when they order. A distributor has sales-people and is much more active (well, in theory!) in actually taking your deck to retailers, showing it in trade fairs and so on. The drawback is that a distributor will, on average, take about 65% of the retail cost of the publication (leaving you with 35% from which to pay all production and design costs - so thin, thin, thin profits!). However, we find distribution a big help as we are not in the US and really have no other way to get to shops in the US and Canada (i.e. we can't go and visit shops, and even phoning a lot of shops would be quite difficult and costly).
So - just something else for people to think about. However, I'd add that distributors usually don't want to take on just one piece, they like to work with publishers who intend to do at least a few things each year - otherwise it isn't cost-effective for the distributor. (Oh, and I should add that before anyone says how awful it is that distributors make huge amounts of money - they don't - it's a notoriously hard business for them as they have to give the shops around 50% discount often, so they end up with only 15% out of which to pay warehousing, sales force, publicity etc.)
The only other thing I wanted to say is that we should remember that AT is international and not everyone is in the US or near the Pacific Rim. So although I agree with your point about the expense of using Western printers, I would like to put in a word for other places. For instance, we are now working with two printers in Czech and possibly one in Poland soon. They are less expensive than, for example, the UK would be, and as long as you choose your printer with care, the quality is just as good (in fact as wages are lower here you could even argue that as printers have more staff there is a bit more time - and more skilled hands - to do fine adjustments). Having said that I'm NOT saying that we can act as agents for any printers (we just don't have time). But I would urge people in Europe to consider Eastern and Central Europe for printing - particularly the countries that are now in the EU and have no customs charges.
Good thread!
Fool and Baba Prague and everyone:
Thanks so much for a bunch of great posts You raised a very important point that I totally forgot about: distributors. If you don't have distributors, it's a lot harder to wholesale your decks. I also want to mention reps, too, and our experience with them.
First, on distributors: there are distributors all over the world, but for the United States, the two big ones are New Leaf Distributing and Baker and Taylor. We are distributed by both, as well as by Brumby Books in Australia. The differences in distribution companies are night and day, but that is a whole 'nuther thread. I will say, however, that I agree with you about how crucial it is to be hooked up with distribution arms. If you want to get into, say, a Barnes and Noble, you won't have a chance in heck unless you are tied in with a distributor. You make less profit with distributors per item, because they will insist on anywhere from a 55-65 percent discount for resale. Of course, it is worth it. Also, until you have a track record, they will take you on a consignment basis (you only get paid when your product moves, so you are shipping product without immediate payment). Of course, it's a moot point because if your product doesn't sell, you won't get paid either way--if they buy once, they won't reorder, and if on consignment, you won't see any checks. If your product *does* sell, it doesn't really matter in the end whether or not you're on consignment. You'll get your money either way.
Another way to go is Reps. Sales Reps go out and represent your line to their established line of book and new age stores (or whatever category they specialize in). There are two kinds of reps: rep organizations and what are called "road reps." In my not so humble opinion, the former is the only kind worth messing with. I would stay away from the latter. It's a waste of time.
Reps have their own way of doing things, and you will find that you'll be creating marketing literature to meet their specific needs and spending a lot of time and money supplying them with materials to sell your line. That's a key word here, "line." A rep won't touch you if you only have one item, they want whole lines to take around to their stores. For more information on Reps, I recommend researching the UAMR (United Association of Manufacturer's Reps). Joining them will give you access to all the reps and rep organizations who can represent your line. (www.uamr.com) Reps work on straight commission, usually fifteen to twenty percent across the board, paid monthly on a cash-in basis.
Fool, that would be a truly great thing if you could print a bunch of different decks at a discounted rate. I don't know if that is doable for you, but if it is, you'd be offering a precious service to artists out there who don't have the wherewithall to print large runs. I wish you great success with that.
And to the individual who mentioned that the Pacific Rim isn't "the only show in town," you're absolutely correct. There are many other countries, albiet European, who are able to print more cheaply than the United States. In my research, however, nobody could come even close to the Pacific Rim as far as per unit price---even with the exorbitant shipping and tarriffs. And I did a lot of research over a year's time on this.
Thanks, guys, for jumping in and contributing to this very important topic.
Warmly,
Mindy Sommers
Dreaming in Color