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Where the new text dollar goes... |
A) Publisher Income: 7.0 cents after taxes
After-tax income from which the publisher pays for new product development, author advances, market research and dividends to stockholders expenses.
B) Publisher Paper, Printing, Editorial Costs: 31.9 cents
All manufacturing costs from editing to paper costs to distribution as well as storage, record keeping, billing, publishers' offices, employee's salaries and benefits.
C) Author Income: 11.4 cents after taxes
After-tax authors' royalty payment from which author pays research and writing
D) College Store Personnel Cost: 11.5 cents
Store employees' salaries and benefits to handle ordering, receiving, pricing, shelving, cashiers, customer service, refund desk and sending extra textbooks back to the publisher.
E) Publisher and Author Taxes: 9.9 cents
Federal, state and local taxes, excluding sales tax, paid by authors and publishers.
F) College Store Freight Expense: 1.4 cents
The cost of getting books from the publishers' warehouse or bindery to the college store.
G) Publisher Marketing Costs: 15.2 cents
Marketing, advertising, promotion, publishers' field staff, professors' free copies.
H) College Store General and Administrative Costs: 5.6 cents
Insurance, accounting and data processing charges, bank charges, store supplies, advertising, and other overhead paid by college stores.
I) College Store Occupancy Costs: 6.1 cents
Store rent, utilities, building repairs, and maintenance. |
| The statistics of publisher's costs in this illustration are based from financial data gathered by the Association of American Publishers and the National Association of College Stores. |
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