Book Publishers Profit Margins

In 2012 and 2013 elsevier posted profit margins of more than 40.

Book publishers profit margins. The following year aspesi reversed his recommendation to sell. Similarly 7 5 is the standard paperback royalty generally rising to 10. When compared with other kinds of companies book publishers do just okay in terms of profit margin.

Bookshops and wholesalers take more than half the. Use the book profit calculator below to calculate the potential income a book will add for you. While traditional book and magazine publishers struggle to stay afloat research publishing houses have typical profit margins of nearly 40 per cent says vincent larivière a researcher at the.

Which was also home to the british book publishing house. Informa s academic publishing division reported revenue of 530 0m gbp and operating profit of 154 1m gbp for an operating profit margin of 29 note operating profit doesn t include taxes. Ebook publishers pay different royalty percentages depending on what price the ebook has.

Remember you re only one book away from changing the rest of your life. The bookstore buys the book for 6 or 40 discount off the retail price from the publisher who calls that 6 the net price. Research shows that ebooks priced between 2 99 and 9 99 sell the most all things being equal so some online publishers incentivize pricing that falls between that range with higher royalties as can be seen in the chart.

When the books sells to a customer the store then makes a 4 profit 10 6 4. But this is based on the r r p not the money the publisher collects. Note that this discount varies between 40 and 50.