Clutch9800 wrote:We may be from different planets but total sales of between one and two million a year is a pretty successful small business.
Clutch
Total sales don't mean
anything to whether a business is successful or not. Total sales
minus costs is what actually matters. A million dollars in sales would not keep a franchise restaurant in business, because the costs are high. A million dollars in sales would keep a private consultant in a fancy house with a Mercedes full of cheerleaders because costs are low.
Each book has a break even point and if it sells more than that, it makes a profit. And if it sells less than that, it does not. A Catalyst book tends to be about 120,000 words, and writing costs about $4,200 for the whole thing. There is also editing, layout, art, advertising, administration, and of course: the owner siphoning money out to maintain his lifestyle. And that's just the production costs to make what is essentially a very fancy .pdf, before we get to shipping and especially
printing that have a per-book cost.
The point we're running with here is that a million dollars for one book is a lot more than a million dollars for twelve books, because for the pile of a dozen you're paying production costs 12 times (and also ordering smaller print runs, which may get you worse bulk discounts on printing and shipping).
Of course, it's kind of moot if you simply don't intend to
pay your writers or artists or editors or graphic designers, or printers their full contracted wages. You can probably santa sack a fair amount of cash on a million dollars of sales if you do that. But make no mistake, if you were actually
paying your production staff, you' be paying over ten grand per book just to create the printing proofs - for a dozen books that is over $120k out of your million before you've printed or shipped a single thing.
And that's not even counting that last year their books were
licensed, which means that they were supposed to turn over some fraction of the sales to other companies. No, if this particular small business is only selling a million to two million dollars, it's not doing particularly well.
-Username17