Outsourcing That Ties In with Growth

November 2008
by Linda Carlson

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Outsourcing That Ties In with Growth

by Linda Carlson

Profit: that’s what businesses are all about. You get higher profit in one of three ways: you sell more at your current margin, you sell the same amount at a higher margin—or you do both. Doing both is, of course, ideal, but it’s challenging, especially in today’s difficult retail market. Most customers have less disposable income, and more ways to get the information that books have traditionally provided. That also translates to less available space for our products in bookstores and the other typical retail outlets for books—and more competition for that decreasing space.

One strategy for cutting costs and increasing profit on current products is outsourcing, especially if you have extensive backlists and frontlists and are striving to position yourself for growth. (A piece in an upcoming issue will focus on how midsize publishers are, or could be, generating higher volume.)

Outsourcing can provide more than a cost advantage, even though you’re introducing another layer between publisher and consumer, and every new layer means another discount. Think, for example, of Epicenter’s experiences with its Palin biography over the Labor Day weekend (see “Sarah’s Story: Keeping Up with an Instant Bestseller,” October). Whe…IBPA Members – Click here to view the full article (login required).

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