The Buck Starts Here
« Back to Independent Articles
No marketing decision is made in a vacuum. The choice to adjust one part of your marketing mix influences the other marketing functions. Your profitability is determined by your ability to plan and control the interaction among the four major elements of marketing strategy: the product and its price, distribution, and promotion.
The impact of marketing decisions on your profitability is demonstrated in the charts below.
The first one shows the net revenue for a title priced at $14.95 with 1,000 books published and sold through a distributor charging a fee of 65% of sales. The net profit is determined by deducting the Cost of Goods – Sold (COGS)–in this case, $4,500 for editing, cover design, layout, and printing–and the distribution discount from the total revenue. Selling all these books would net $732.
How would your profitability be affected by a change in distribution? The chart below shows how much you would increase net revenue if you sold t…IBPA Members – Click here to view the full article (login required).
From mailings to exhibits, see how IBPA's marketing programs help you grow your sales.Educational Opportunities
Attend a seminar, ask an expert, and get more free advice with our educational programs.Become a member
Access exclusive members-only benefits starting at just $10.