What do you think about Amazon’s announcement that small publishers need to print with their printer in order to be listed on Amazon?
What do you think about Amazon’s announcement that small publishers need to print with their printer in order to be listed on Amazon? To regular readers of this column, this announcement should have come as no surprise. I wrote about this last summer. Most “experts” thought I was out of my mind. Looks like I get the last laugh, now. First off, if you are selling books through a distributor or selling via Amazon Advantage, this announcement means nothing. If your book is available on Amazon via one of the various POD (Print on Demand) programs….
Several weeks ago rumors were running wild that Amazon was essentially cutting off Lightning Source, a POD printer owned by Ingram and replacing them with their own printer, Book Surge. This rumor was confirmed, a short time later, by Amazon with the following press release (click here) To those of you who list books on Amazon via a traditional distributor or through the Amazon Advantage program, this announcement means nothing. If your books are being listed on Amazon via one of the various POD programs, this simply means you may need to upload your file to an additional website, and if you have been playing games with the discounts, possible make a little less money.
If you are the owner of Ingram or the President of Lightning Source you might be having a few sleepless nights but beyond that, it’s no big deal. Printers win accounts and lose accounts every day. That’s business. Many of the larger companies are already dealing directly with Amazon. The rest will follow suit. Again…no big deal. The book buyer is unaffected. If your book was selling well on Amazon prior to this announcement it will continue to do so. If it’s not, it won’t.
This story should end right here. Actually, it shouldn’t even be a story. The only reason I am giving this as much play in my newsletter as I am, is due to the various reactions out there in POD land. Cries of foul and anti-trust violations abound. Even some of the trade associations started jumping on the bandwagon. It is absolutely the most amazing thing I have ever witnessed. It’s crazy. Lightning Source is basically sitting back saying “business as usual” while many LSI disciples are out on the street corners shouting foul. It will be interesting to watch everyone’s next move.
The following are a few of my “posts” during this whole thing. My regular readers should get a kick out of them. To those of you who thought I was crazy last year, when I first wrote about this, I’ll take this one last opportunity to say, “I told you so”, and move on. There is much more going on out there in the self-publishing world than worrying about who is printing with whom. See you in May.
Initial Post in reaction to everyone’s surprise.
I believe I wrote to this group 2-3 months ago (actually 9 months ago) about the probability of Amazon directing POD traffic to their printer. I don’t see it as any different than when Ingram stopped dealing directly with small publishers and pushed them to their printer, Lightning Source. One way or the other, it shouldn’t make a bit of difference to anyone except LSI. To read those articles, (click here)
Ron Pramschufer
RJ Communications
www.selfpublishing.com
“What upsets people the most is that choice is being taken away from them - they are being forced to use a specific printer (which many of them have had bad previous experiences with). “
You are free to use any printer in the world, including LSI and deal directly with Amazon either through their Advantage program or through a distributor. It wasn’t that long ago that small publishers were able to deal directly with Ingram. Ingram made a corporate decision to stop dealing with the small publishers in order to support their printing facility, Lightning Source. Unfortunately, for the small publisher, in Ingram’s case, they did not start the equivalent of an Advantage Program so small publishers were left with two choices… Either find a distributor or deal with Ingram’s printer. This move hurt the small publisher significantly more than this current move by Amazon, but that’s life…
Ron Pramschufer
RJ Communications
www.selfpublishing.com
“How did Ingram’s decision to stop dealing with the small publisher and force them to use Lightning Source hurt the small publisher?”
According to a PMA/BISG survey titled “The Rest of US”, from a few years back, the average print run for independently published books was 3000 and the average page count 256. The unit cost of 3000 copies of a 256 page hardcover jacketed book is $2.77 per book. The LSI cost for printing the same 256 page book is $9.32 per book. The $6.55 difference comes out of the publisher’s pocket. It doesn’t take much imagination to figure it out from here.
Ron Pramschufer
RJ Communications
www.selfpublishing.com
Previous post: AT&T could not establish to discriminate, for example, that it would only provide Long Distance service to Registered Voters in the State of Kansas
Unless something has changed, you must use AT&T if you want to own an I Phone (or at least, use it). There is no difference. I run an online bookstore and it only offers book for sale that I print. Same thing holds true of Lulu’s online store and I Universe’s online store.
What really upsets people and nobody seems to be talking about is not the printer who prints the books but the short discount, non-returnable factor that everyone got used to with LSI. If LSI/Amazon came to an agreement where Amazon agreed to sell LSI printed books but only on a 55% discount/returnable basis, all those complaining now would still be complaining.
It’s time to get over it and face the fact that if you want to sell through Amazon in the future it will be on a 55% discount/returnable basis. If you can’t make money with those terms, you either stop selling through Amazon or it’s time to go back to the printing press and print more copies to get a lower unit cost so you can make money.
That’s the publishing business.
Ron Pramschufer
RJ Communications
www.selfpublishing.com
“This is my only publishing list that is not going insane over Amazon’s squeeze on POD publisher. No one here concerned”
It doesn’t make any more difference who prints for Amazon than who does for Ingram. B&N tried it themselves and it didn’t work. Baker & Taylor has also toyed around with it. It’s no big deal. You are talking about sales channels. If you need so sign up for one additional program to get your books into the Amazon sales channel, it’s not a big deal.
Ron Pramschufer
RJ Comunications
www.selfpublishing.com
Last 5 posts by Ron Pramschufer
- Bookstore Distribution—Self Publishing Dream come true or The Emperor’s New Clothes? - July 8th, 2008
- I want to self-publish a book. Where do I start? - May 29th, 2008
- What are the steps are involved in Self-Publishing a book? - March 24th, 2008
- Do you know any good book printers? - February 11th, 2008
- What do you think of Facebook as a marketing tool for self-published books? - December 5th, 2007
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April 18th, 2008 at 9:39 am
“…by Amazon with the following press release (click here)…”
The “click here” isn’t linked. What was the URL to the press release?
Oops! Sorry about that. The press release is located at http://www.amazon.com/gp/feature.html/?docId=1000213141.
Thanks
Ron
April 18th, 2008 at 9:52 am
Mr. Pramschufer, thanks for this post! As a micro-publisher preparing to launch his first book via LSI to get on Amazon, this makes me rethink my strategy.
My personal thanks to you for all the valuable information you put out. It directly lead to my decision to purchase my own ISBN’s which gives me the flexibility of moving my book to whatever channel makes the most sense for me.
Amazon has to do what it feels is right for itself. Your information helps put things on an even playing field and lets me do what is necessary to launch my business.
Cheers!
Bernie Malonson
April 18th, 2008 at 10:00 am
Several things about the amazon grab for printing POD books.
Very similar to the IBM case in the 60s where they tried to make people use their punch cards. The govt needs to look at amazon for antitrust violations.
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Booksurge has a reputation for low to bad quality with many of their books.
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They do not apparently have the capacity to print everything amazon needs either.
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amazon takes way too high a %percentage% for what they do. small publishers cant make a decent profit (if anything). using amazon is like writing for free to get “exposure” if you give then a 48% discount.
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there are good alternatives for self publishers and POD sales.
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just say no. do not deal with amazon in any manner.
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April 18th, 2008 at 5:15 pm
Notice in “speedball’s” post how the same misinformation is again trotted forth to “prove” that this is all a huge plot by Amazon to monopolize the print-on-demand industry?
We’ve used Booksurge since they were Digitz. All of our backlist to fall of 2006 are listed there, and several of those are dual-listed with LSI as well. I have never to this day seen any difference in quality of the product, and yet because Angela Hoy, who hasn’t used Booksurge for years if at all, claimed the Booksurge quality was abysmal everyone now is convinced it’s so.
I have to agree, Ron. The earliest protests against the Amazon policy–which is nothing but utilizing POD the way it should be used–were from people who have gotten away with short-discounting. In essence, Amazon has been selling books for them and in some cases losing money on every sale. Since it wouldn’t have won any support to complain about that, the outcry turned to screams of restraint of trade and monopoly and who knows what-all.
I said it several times when the mess first started, and I say it again: TANSTAAFL.
April 19th, 2008 at 2:41 am
I have three POD books. One, Escape from Paradise, is printed both by Booksurge and by LSI. I suppose that Amazon has simply switched over to Booksurge for its copies. The other two book, Palazzo, and Dear Friends and Darling Romans, are printed only by LSI. Nevertheless, those two books continue to appear on Amazon, and usually “in stock.” Does this mean Amazon is still ordering from LSI?
April 19th, 2008 at 5:33 am
Amazon bypassed the anti-trust issue in clear terms in their press release. Though Amazon will probably circumvent any serious anti-trust litigation, I still find the whole thing unsettling. It’s yet another in a long line of examples of capitalism run amok in America.
To change the subject, I’ve been with BookSurge for 8 months now and I am appalled by their poor quality product. For example, after one reading of our book, the cover is shot. I have noticed that LSI enforces a much higher standard, based on LSI books I have read. This was a huge motivation for me to also sign with LSI, but now LSI’s only virtue is its automatic tie-in with Ingram for non-Amazon sales. BookSurge has no affiliation with Ingram or any other major distributor.
Fortunately, both BookSurge and LSI print the publisher’s name in the Copyright page and leave their own identities off the book entirely. It seems that both companies defer to whomever owns the ISBN. Imposing their respective identities would have been a deal breaker for us.
FYI, I noticed large fluctuations with my Amazon rankings, indicating a minimum of eight sales in March. BookSurge reflected only two of them. After I raised hell at BookSurge, the sales are now completely in line with the fluctuating rankings.
Also, I find it odd, to say the least, that LSI has automatic tie-ins with Amazon UK and Amazon Canada, but BookSurge does not. I wonder if the foreign Amazons will also nudge LSI out.
Finally, I disagree with the publishers who say that one should avoid Amazon altogether. I say any exposure is always good. I feel that Amazon can be a viable stepping stone and a worthy starting point to launch a book. Plus it does generate income.
Sincerely,
Lee Hall
April 19th, 2008 at 3:21 pm
Ron,
I’ve been waiting to hear you weigh in on this issue. It’s interesting that you are siding with Amazon. I’ve heard that Amazon is slowly contacting each of LSI’s customers with a sales pitch to sign a contract with BookSurge. I guess at some point Amazon will contact RJ Comunications/Thor with such a pitch. I am guessing that you will probably turn them down and remove Amazon.com from the list of Thor’s wholesale partners.
Personally, if Amazon should turn off the Buy buttons for my book, I will choose to sign up for Amazon Advantage using stock from my print run. Once my stock is depleted I may consider BookSurge, and hopefully their quality problems won’t still be an issue by then.
April 21st, 2008 at 8:58 am
Mark,
You need to go back and read my article again. No, I would not drop Amazon from my program. I will include any program that can sell books and make money for my author/publisers. If I need to open 10 accounts with 10 different retailers or wholesalers, I will. It is in the author’s best interest. It’s not a matter of sides, it’s a matter of how many valid sales channels can be set up to sell books. In my mind, that number was NEVER one.
Ron
April 25th, 2008 at 1:37 pm
I’ve been a happy customer of LSI for several years primarily because they let me start a micro publishing company with very little investment and still get major distribution and a reasonable cost per book.
However, I’ve always seen LSI as a stepping stone towards the day when I’d be doing short run printing and storing and shipping our books. Once we get up to a certain sales point it makes more sense (and cents!) to buy more books cheaply rahter than fewer books at a higher price.
I also want to point out that I always counsel prospective authors to be able to make money at 55% off! The average authors royalty is about 10% of the retail price. I can make about 3 TIMES that much and still sell my books at 55% off, so if I need to shift over to Advantage then that abil;ity is already built in to my system.
Remember that being an author may not be about selling books! If you are a professional speaker then having that book on Amazon.com is priceless even if you don’t sell any.
Just something to think about.
Robert Morgen
May 22nd, 2008 at 2:22 pm
Hi,
I have a few questions.
Robert Morgen…what you wrote was interesting but can you explain:
Why you make 3 times more with a 55% discount. What formula do I use?
Can you explain how if you are a speaker, a book on Amazon is “priceless”?
Since you know this, maybe you can suggest something for me. If I am a speaker, about quit smoking and have a book. How can I get some audiences large and small to speak to on the subject? For instance are there sites that have databases of companies that want speakers?
****************************************************************
Ron,
I haven’t yet got my book published, but can you cut to the chase for me?
Should I still publish thru Thor? Will I be listed in Amazon if I do?
Thanks
Don Muller
http://easyquitnow.com