- by Tara Maya
Ingram and the Sea Change in Publishing
Ingram wants to lead the sea change in publishing:
While digital is growing rapidly, Ingram continues to invest in print technology to maintain its leadership position in a segment it all but invented: print-on-demand. Its Lightning Source division now has 4.4 million titles and has added more titles this year than at any time in its history. “We’ve seen an explosion of titles,” Prichard said, attributing that to a number of factors: traditional publishers doing shorter first printings and reprinting using POD; the growth of aggregators that print public domain titles; more self-publishing; and greater use of POD by academic presses.
…
“We expect to take over more publishers’ back-end operations as they move from print to digital, and business models change like never before,” Prichard said. As digital publishing commands more resources, publishers will want to move the management of slow-moving titles to Ingram, freeing warehouse space and “turning fixed costs into variable costs,” Prichard believes. Serving as the back end for publishers as well as Ingram’s still rapidly growing direct-to-consumer business centered around fulfilling Internet book orders is why Prichard predicted that Ingram’s print sales will increase in the years ahead.
…Blending Ingram’s print and digital capabilities was one reason Prichard led the reorganization of the company 15 months ago, a process that combined three businesses—Ingram Book Company, Ingram Digital, and Lightning Source—into the Ingram Content Group. The move centralized all of the departments of the three separate businesses and has made it easier for customers to work with Ingram, whether for print, digital, or a mix of services.
Oh, and this is both funny and sobering.
Writer: Nine months.
Editor: What?
Writer: Nine months, working 60 hour weeks. That’s how long it took me to write my novel. That seems a bit longer and more labor-intensive than your three weeks. Yet I’m only getting 17.5% of the price that you set. Do you know what your percentage is?
Editor: Off the top of my head, no.
Writer: You get 52.5%.
Editor: Really? Huh.
Writer: To me, that doesn’t seem fair.
Editor: You don’t seem to understand that you need us. Without editing or cover art…
Writer: (interrupting) Let’s say the ebook sells ten thousand copies. Which, at your inflated price of $9.99, seems unlikely. But let’s say it does. That means I earn $17,500…
Editor: A respectable figure…
Writer: …and you earn $52,500. Even though you only worked on it for three weeks.
Editor: But you gotta admit, we made a terrific cover for it.
Writer: True. But for fifty thousand dollars, I bet I could buy some pretty nice cover art on my own. I bet I could pay a doctor to raise Pablo Picasso from the dead and have him do the cover.
Editor: Don’t forget editing.
Writer: How long does it take to edit a manuscript?
Editor: Excuse me?
Writer: In hours. How many are we talking? Ten? Twenty?
Editor: It might go as high as fifty hours, with multiple read-throughs and the line edit.
Writer: How much do editors earn an hour?
Editor: Excuse me?
Writer: Let’s say fifty bucks an hour. I think that’s high, and I also think your fifty hour estimate is high, but even if we go with both, that’s only $2500. And according to the Artist & Graphic Designer’s Market, book cover art should cost around $2000.
Editor: Don’t forget formatting and uploading.
Writer: I can pay a guy $200 to format and upload the book. In fact, I can also pay a guy $300 to create a cover, and an editor $500 to do both content and copy editing. But you’re not charging me $1000, or even $4500. You’re taking $52,500. And that number can get even bigger. If I hire my own editor and artist, those costs are fixed. You continue to take your 52.5% forever.
Editor: You don’t seem to understand. Do you know how much it costs to rent this office? We’re paying $25k a month, and that doesn’t even include utilities. I’ve got three assistants. We all have health insurance and 401k. Expense accounts. Do you have any idea what it costs to take agents out to lunch?
Writer: My agent didn’t broker this deal.
Editor: You’re missing the point!
(Assistant enters, with coffee)
Assistant: Here’s your cappuccino, Editor.
Editor: There’s another cost! We paid five grand for this cappuccino machine! How are we supposed to stay in business unless we take 52.5%?
Writer: (standing up) I think we’re done here.
Editor: Wait a second! You need us! Without us to validate your work, you’ll never be considered legitimate! You’ll just be some unknown, satisfied rich guy!
There’s more. You should read the whole thing. Hilarious and yet quite… thought-provoking.