"I have self published my own book and I am presently looking to place it with
local bookstores. Is there a customary discount given and is it based on the
quantity? Example: purchase 1-20 books and receive 15% discount. Also what is
the general allocation given when books are brought wholesale?"
~DJC
Answer supplied by Earl Cox of Writersandpoets.com, AALBC.com
Let's start building a discount schedule by breaking the schedule into two
different classes of customer.
1- Retailers
2- Wholesalers
On average, a retailer will expect to receive a minimum discount of 40%, a
wholesaler will expect to receive at least 50 or 55%. Certain specialty
wholesalers demand a 60% discount because they specialize in a particular market
and sell to an exclusive group of retailers such as gift shops, street vendors,
etc.. Now let's look at the schedule:
Retailers
1-4 copies = 20%
5-24 copies = 40%
25+ = 47%
Wholesalers
1-9 copies = 40%
10 - 100 = 50%
101+ = 55%
We set the retail discount at 20% for 1-4 units to encourage retailers to buy at
least 5 copies or more. In addition, the costs associated with shipping and
invoicing 1 or 2 copies of a low priced paperback are high.
In addition to the discount schedule, you will also need to consider the
following questions:
Who pays for shipping to the account?
Will you allow returns?
Will you offer an additional discount if the customer buys non returnable?
If you allow returns, who will pay the cost of shipping returns back to you?
Will you give an additional discount if the retailer is buying your book for an
event?