How Do I Know How Much I Can Pay For A Book?

10/26/06

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Because of the various charges incurred when a book sells, customers of my book frequently ask me how they can know how much is the most they can pay for a book and still make a profit.  Since this varies with the selling price owing to marketplace commissions as well as the weight of the book and packaging material costs, it is easier to say what the break-even cost would be for a book selling at a given price for different weights and packaging material costs.


To answer this and provide a useful chart, I used the following assumptions:

Marketplace Commission: 15%

Marketplace Postage Reimbursement: $2.29

Media Mail Rate: $1.59 (up to 1 pound)

Additional Media Mail Increment: $0.48 per each additional pound.


And generated the tables for books weighing one to five pounds with packaging material costs increasing from $0.45 to $0.65 in $0.05 increments respectively.
                              

Book
Selling
Price
  Weight
1 Pound
Weight
2 Pound
Weight
3 Pound
Weight
4 Pound
Weight
5 Pound
 $    1.00    $    1.10  $    0.57  $    0.04  $   (0.49)  $   (1.02)
 $    2.00    $    1.95  $    1.42  $    0.89  $    0.36  $   (0.17)
 $    3.00    $    2.80  $    2.27  $    1.74  $    1.21  $    0.68
 $    4.00    $    3.65  $    3.12  $    2.59  $    2.06  $    1.53
 $    5.00    $    4.50  $    3.97  $    3.44  $    2.91  $    2.38
 $    6.00    $    5.35  $    4.82  $    4.29  $    3.76  $    3.23
 $    7.00    $    6.20  $    5.67  $    5.14  $    4.61  $    4.08
 $    8.00    $    7.05  $    6.52  $    5.99  $    5.46  $    4.93
 $    9.00    $    7.90  $    7.37  $    6.84  $    6.31  $    5.78
 $   10.00    $    8.75  $    8.22  $    7.69  $    7.16  $    6.63
 $   11.00    $    9.60  $    9.07  $    8.54  $    8.01  $    7.48
 $   12.00    $   10.45  $    9.92  $    9.39  $    8.86  $    8.33
 $   13.00    $   11.30  $   10.77  $   10.24  $    9.71  $    9.18
 $   14.00    $   12.15  $   11.62  $   11.09  $   10.56  $   10.03
 $   15.00    $   13.00  $   12.47  $   11.94  $   11.41  $   10.88


From the table you can see that if you sell a book for $1.00, you can pay up to $1.10 for it and still break even as long as it does not weigh more than a pound.  Anything you pay that is less that $1.10 would be profit.  On the other hand, if the book weighs 5 pounds and you sell it for a dollar, in order for you to break even you would need for someone to give you the book plus $1.02 to break even.


Another way to think of this is to consider that you sell a book weighing one pound for a dollar.  You will make $1.10 in profit, so you can not pay more than $1.10 for the book in the first place.


Consider that you sell a book weighing 4 pounds for $12.00.  The table shows that you will profit $8.86 on the book, so if you actually pay $2.00 for the book you stand to profit $6.86.


I also included a graph of this data so you could see where selling prices between the ones I provided will fall.  Each line represents a different book weight range.


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