Monday, July 30, 2012

POD Costs and Profits Using Amazon and Lightning Source

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Here is a economic analysis for self-publishers of what is involved in selling a book applying Amazon and Lightning Source (LSI). Here Amazon is the retailer for our books, and Lightning is the printer and distributor for our books. This analysis will show you how considerably capital you will get for every book that you sell on Amazon's web site when you use Lightning Source as your printer and distributor.

This will also assist you comprehend how Amazon and Lightning take their cut of your book's cover cost, and what income you end up obtaining. I picked 2 books that are various in size, page count, and cover cost. This analysis does not take into account any other costs for these books, such as for advertising, writing, marketing and advertising, and so on. Also, this analysis does not take into account any other sources of cash that can be derived from these books, such as selling via my own internet sites with Amazon's Benefit Account, or selling on Kindle.

Book one: The Path of the Law

-ISBN: 978-one-933230-08-five paperback -Title: The Path of the Law -Pages: 112 -Size: 8.five" x five.five" -Cover cost (set by me): $1one.95 -Discount (set by Amazon): 5five% (Even if you set a lower discount on LSI, Amazon nonetheless gets 5five%) -Wholesale cost (quantity Amazon pays us): $five.38 [$1one.95 x 0.45 = $five.38] -Print charge (quantity LSI keeps): $two.46 -Net publisher compensation (the final quantity that I get from Lightning): $two.92 [$five.38 - $two.46 = $two.92] -I end up with 24% of the cover cost [$two.92 / $1one.95] = 0.24 = 24%

Up-front out-of-pocket charges for this book: one. Lightning charges for this book -Cover fee: $37.50 (1 time) -Book interior fee: $37.50 (1 time) -Annual catalog fee: $12 (each and every year) -Fee to get a proof copy: $30 (1 time) -Total charges the 1st year: $117 -Total charges the second year: $12

two. Amazon charges for this book -Total charges the 1st year: $0

3. Total initial year up-front out-of-pocket charges for this book: $117 -Hence, I have to have to sell 41 copies of this book on Amazon ahead of I recoup all of the charges. [$117 / $two.92 = 40.07 = 41]

Book two: 101 Medical Word-Search Puzzles

-ISBN: 978-one-933230-09-two paperback -Title: 101 Medical Word-Search Puzzles -Pages: 132 -Size: 1one.0" x 8.five" -Cover cost (set by me): $17.95 -Discount (set by Amazon): 5five% (Even if you set a lower discount on LSI, Amazon nonetheless gets 5five%) -Wholesale cost (quantity Amazon pays us): $8.08 [$17.95 x 0.45 = $8.08] -Print charge (quantity LSI keeps): $3.75 -Net publisher compensation (the final quantity that I get from Lightning): $4.33 [$8.08 - $3.75 = $4.33] -I end up with 24% of the cover cost [$4.33 / $17.95] = 0.24 = 24%

Up-front out-of-pocket charges for this book: one. Lightning charges for this book -Cover fee: $37.50 (1 time) -Book interior fee: $37.50 (1 time) -Annual catalog fee: $12 (each and every year) -Fee to get a proof copy:$30 (1 time) -Total charges the initial year: $117 -Total charges the second year: $12

two. Amazon charges for this book -Total charges the 1st year: $0

3. Total initially year up-front out-of-pocket charges for this book: $117 -Consequently, I have to have to sell 28 copies of this book on Amazon ahead of I recoup all of the charges. [$117 / $4.33 = 27.02 = 28]

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