NEW PUBLISHER BUSINESS PLAN
Paul Czege:
Hey Seamus,
This interview with Luke Crane (the publisher of Burning Wheel, Burning Empires, and other games) about finances and the sizes of print runs and profitibility is worth listening to.
Paul
Eero Tuovinen:
Quote from: Seamus on April 02, 2009, 07:13:32 PM
Thanks for the feedback. How does doing a print run that small effect profit? Wouldn't I need to charge a lot more for each book? I keep hearing 500 is the most economical run for a small publisher starting out. Where can I get good information on Printing so I don't get taken advantage of?
Ah hah, for this I have a nice little essay somewhere around here... this one. It should explain the different printing options and their general advantages pretty well.
Printing a 100 copies will definitely cause the per-copy cost of the book to be higher than it'd be if you printed a 1000. How much higher depends on the particulars of the book's dimensions, page count, color, binding, etc. As it turns out, however, this is not as much of a problem as one might think: a small print run means that you're going to be selling the book direct, which in turn means that you're making twice the money you'd be making in retail, which turns into at least four times the profit (after printing costs) - the outcome is that even if the per-copy cost is double or triple what you'd have with a large run, as long as you can sell it all directly to the customer thanks to not having to unload a large number of books, you're still making the same or even better profit per copy on those 100 books that you'd be making on the 1000.
greyorm:
Seamus,
This is my perception of some of your responses, so please correct me if you meant something different. It feels to me as though you view some of the advice you're hearing conflicting with what you think you want to do or where you want to go, but keep in mind: 1) We've been doing this, you haven't. We're good sources of information from the actual trenches. 2) No one here wants to see you fail or hold you back. Anything we say is meant to help you do the best you can, and is time-tested advice that has worked in the real world.
So, that in mind, I'm not sure what you mean in your response to Eero. It seems as though your objection to the advice he provided was that you weren't trying to be "indie" but trying to be a "name" in the hobby. But that is a meaningless dichotomy; "indie" does not equate to "small" or "unknown" or "not really a business", or whatever, and I am confused as to why you seem to think "slow and steady growth" can not be achieved by the practices and advice provided. I don't understand why you seem to believe these are somehow incompatible or opposed. Can you explain (assuming I haven't mistaken your meaning)?
Because you are an indie publisher right now, regardless of what you want to be five years down the road. It means you are a small start-up business; and as such, you should not be using big name business strategies to obtain the steady growth necessary to reach your stated goal of becoming a name-brand, because right now you need to work the market as what you are.
But before I write out any other advice, I did have one question: I don't recall if you stated this before or not, so I am curious as to where you get the 1000-1500 number from as your desired initial print run? Who recommended that to you and why?
Seamus:
Quote from: greyorm on April 02, 2009, 07:54:07 PM
Seamus,
This is my perception of some of your responses, so please correct me if you meant something different. It feels to me as though you view some of the advice you're hearing conflicting with what you think you want to do or where you want to go, but keep in mind: 1) We've been doing this, you haven't. We're good sources of information from the actual trenches. 2) No one here wants to see you fail or hold you back. Anything we say is meant to help you do the best you can, and is time-tested advice that has worked in the real world.
So, that in mind, I'm not sure what you mean in your response to Eero. It seems as though your objection to the advice he provided was that you weren't trying to be "indie" but trying to be a "name" in the hobby. But that is a meaningless dichotomy; "indie" does not equate to "small" or "unknown" or "not really a business", or whatever, and I am confused as to why you seem to think "slow and steady growth" can not be achieved by the practices and advice provided. I don't understand why you seem to believe these are somehow incompatible or opposed. Can you explain (assuming I haven't mistaken your meaning)?
Because you are an indie publisher right now, regardless of what you want to be five years down the road. It means you are a small start-up business; and as such, you should not be using big name business strategies to obtain the steady growth necessary to reach your stated goal of becoming a name-brand, because right now you need to work the market as what you are.
But before I write out any other advice, I did have one question: I don't recall if you stated this before or not, so I am curious as to where you get the 1000-1500 number from as your desired initial print run? Who recommended that to you and why?
First let me apologize. I wasn't trying to come of as anti-indie in my post and I realize that is how it came accros. My basic point was we want to hit the ground with just the right speed to grow in the future; not too big or too small. I just wanted my goals to be clear, so I could get the best advice.
I am happy to hear advice that conflicts with my expectations. I know very little about publishing. Like I said, I have mostly seen the freelance side. I do know what I want. Which is to grow and be successful. But if my assumptions are wrong, I want them challenged (and though I may appear resistant-- what I have heard hear has seriously made me rethink my strategy---I am just one of those people who likes to question everything until I know its the right way to go, so I needed to throw out the other advice I heard. Basically I am looking for specific reasons.
The 1000-1500 number comes from other forums with publishing pages I have visited, my days working as an editor where my bosses always said that was a good number for a small publisher, from books on small publishing, and the I am Mongoose Book. Granted the first three may have no application to the role playing industry, and the last needs to be taken with a grain of salt. For what it is worth, I am definitely leaning toward starting smaller.
Seamus:
Quote from: Eero Tuovinen on April 02, 2009, 07:42:26 PM
Quote from: Seamus on April 02, 2009, 07:13:32 PM
Thanks for the feedback. How does doing a print run that small effect profit? Wouldn't I need to charge a lot more for each book? I keep hearing 500 is the most economical run for a small publisher starting out. Where can I get good information on Printing so I don't get taken advantage of?
Ah hah, for this I have a nice little essay somewhere around here... this one. It should explain the different printing options and their general advantages pretty well.
Printing a 100 copies will definitely cause the per-copy cost of the book to be higher than it'd be if you printed a 1000. How much higher depends on the particulars of the book's dimensions, page count, color, binding, etc. As it turns out, however, this is not as much of a problem as one might think: a small print run means that you're going to be selling the book direct, which in turn means that you're making twice the money you'd be making in retail, which turns into at least four times the profit (after printing costs) - the outcome is that even if the per-copy cost is double or triple what you'd have with a large run, as long as you can sell it all directly to the customer thanks to not having to unload a large number of books, you're still making the same or even better profit per copy on those 100 books that you'd be making on the 1000.
Thanks for the break down. The small print run and the direct sales is definitely something we are considering. But I do have some concerns. Does this limit my long term growth? Though they buy at a discount, doesn't having the distributor put you on shelves where people browse, help get the product and your name out there? (I have been told this by some people, and it matches my own experience-- I usually learn about publishers and products while looking for my other role playing games at the hobby shop or book store). If I am doing direct sales, how do I get people to know about my product?
By the way, you have been one of the most active and helpful people here Eero, so please don't take my questioning the wrong way. I am listening; I just want to make sure I am clear on these things and understand all my options' pros and cons.
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