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Categories: Book printing >> Printing Blog
What Affects the Pre-production Decision?
Origin:Image Printing  Data: 4/2/2011  Keywords: Pre-production Decision

When the book printing house takes the final decision on fixing the price and print quantity, the fixed costs have already been incurred and cannot be changed. On account of the uncertainties of estimating demand, a prudent publisher favors a higher price and a lower quantity rather than a lower price and a higher quantity.

If the actual demand for the book is less than expected, a price on the high side may still return a profit, whereas too low a price could lead to substantial loss. The great dangers are underestimating costs, overestimating demand, and under pricing. This leads not only to a loss on the individual book, but also can wipe out the profit on others. Successful books can always be reprinted, but at a price and quantity which again are chosen to avoid loss. If a book is likely to be added to the backlist, there may be an argument for accepting a lower than usual gross margin on the first printing, on the grounds that a reprint will have a much healthier margin. The first printing of a school textbook may attain no profit, but the hoped-for second and subsequent printings should move it into profitability. Also hardbacks can perhaps tolerate a lower gross margin, since the follow-on paperback will not have the production fixed costs to bear.

Other factors affecting the pre-publication decision concern the level of investment at risk, for example very high advances or a large investment in a major textbook, and its duration. Several combinations of price and print run may be tried out, including worst case scenarios, and the break-even may be calculated. A project break-even point is the minimum quantity that must be sold to cover the production costs and the advance or royalty. Also included might be a proportion of the overheads. On some proposals, if the break-even is considered attainable, that may inspire sufficient confidence to go ahead. Some publishers calculate the cashflow and the interest incurred over time. From the outset to after publication, the publisher usually endures a net loss before the income surpasses the outlay. The estimated income is derived from the sales forecasts broken down over time.

If you wrote in a book printing company, you are an expert in your subject. Now, all you have to do is to use your imagination to connect your subject and book to the breaking news and let the media know you are available. Paul Hartunian is a master at this. He makes up a list of major TV news programs, morning shows, and Sunday shows and stores them in his computer. Now, when news breaks, he dreams up a hook, alters the news release mentioning his book and faxes it to every show. Test several potential hooks by telephoning radio and TV call-in shows. Draft your pitches; write them out. Begin by identifying yourself as the author of (your book), then state your observation. Choose your words carefully and refine your observation to sound bites. Then be prepared for questions to explain what you have found. Once you get a good reaction, approach larger shows.

As an author, you were creative enough to write your book. Now, use your creative ability to dream up a connection between it and current events. The media needs you. Your book will thank you. TIE NEWS RELEASES INTO HOLIDAYS AND OTHER PREDICTABLE EVENTS. The media will be talking about the subject and looking for related material. See John Kremer Celebrate Today and Chase Annual Events for dates but use only the better-known events.

UP -- The Costs Confidential to Book Printing Company
Next -- Gross and Net Profit for a Book Printing Job
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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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