Director’s DeskAt What Cost? or Does It Pay to Ignore Ingram?

April 2003
by Jan Nathan

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Last year just before BookExpo America, Ingram Book Company announced that smaller publishers would have to have a distributor of record in order to continue to do business through them. This year, a new contract has been sent to people defined as “Micro Publishers.” Ingram’s definition of a micro publisher is one with “less than $15,000 in net sales over a two-year period.” I tend to agree with this term. If your sales wouldn’t bring in more than $15,000 from bookstores through Ingram over a two-year period, the bookstore market is probably not all that important in your overall marketing plan.

By changing their policy somewhat today, Ingram is allowing the “micro publisher” to remain with them on a direct basis by agreeing to the terms in their Small Publisher Terms Agreement. Among other things, page one of the Publisher Submission Package states that the “terms agreement” cannot be altered but just “signed and returned.”Theagreement itself (at last a contract that consists of one page only) requires the publisher to:

Sell to Ingram at a 60% discount.Pay freight charges to and from Ingram.Allow Ingram a payment term net 90 days from EOM (end of month).Allow all products to be returned to publisher with no prior permission for returns and no restocking fees.Participate in a “New Vendor” program during their first year of business, which involves a one-time setup fee of $250, due…IBPA Members – Click here to view the full article (login required).

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