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Categories: Book printing >> Printing Blog
The Value Chain of Book Printing
Origin:Image Printing  Data: 3/24/2011  Keywords: Value Chain of Book Printing

The basic aim of a book printing company to publish a book is to sell and get the profits. Even not-for-profit publishers will want to at least break even, covering their costs, unless they receive a subsidy from parent organization. A publisher might previously have cross-subsidized less popular titles from the profits of its top sellers, but that approach has largely been abandoned. Of course a book may acquire value as a collectable object or a great literary work to be admired and studied by future generations, but this chapter will concentrate on the creation of monetary value by publishers as commercial enterprises. As for the raw material, the publisher aims to add sufficient value so that it sells the product at a higher value than the costs that have been incurred. A number of activities are undertaken in order to take the author's text and make it available as an attractive product that consumers will want to buy. These activities are shown below. Each of the publishing functions is described in more detail in the relevant chapter.

When a book is acquired from an author, it has to be edited, designed, produced, marketed to the book trade and readers, and sold to bookshops or the end-purchaser. Once the book has been printed, it has to be stored, orders are taken from retailers or consumers, and the book is then dispatched from the warehouse. Publishers can choose which elements of the value chain they undertake themselves, and which are outsourced to third parties. For example, while commissioning new titles is usually done in-house, copy-editing and proofreading are typically carried out by freelance editors. The key elements of the value chain are the acquisition of intellectual property, editorial, design and production, marketing, and sales, and most publishers will control these functions directly. Publishers can look to combine stages of the value chain and, for example, editorial, design and production may be combined into one function, and the post of production editor is increasingly common.

Publishers seek to gain competitive advantage in the market, and this is done through acquiring and controlling the best intellectual property. Having the best possible people in the commissioning roles will be the key to many publishers' success. There is also value to be found in other parts of the value chain. For example, a larger publisher will be able to negotiate from a stronger position with printers and paper suppliers, and with key retailers and wholesalers. Giving away high discounts to the bookshop chains has the aim of ensuring that a publisher stock is widely available, and should increase sales, but it also squeezes a publisher profit margins.

Selling direct, rather than through intermediaries, enables a publisher to keep more of the product's final value. There are economies of scale in production if co-edition orders can be added to the print run. Using print on demand to print smaller quantities, or selling ebooks, may minimize or eradicate investment in stock. There is less competitive advantage to be found for a publisher in the physical distribution of books, since the levels of service are now high across the industry. Nevertheless a larger publisher benefits from economies of scale in distribution in such areas as investment in IT systems, the size of orders, and negotiation over carriage costs with shippers, and the collection of money from customers.

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As a professional book printing factory in China, Image Printing Packaging Ltd focus on book printing and packaging printing mainly for oversea and domestic customers. We are located in Shenzhen city, the book printing and packaging printing industrial center of China and even worldwide. Please be kindly note we offer a wide range of professional customed printing service with aggressive prices
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