"Still," Mettee says, "publishers have to ask themselves if zero or very low returns is the goal they should be aiming for. A company that is experiencing zero credit losses is likely leaving a lot of profitable business to its competitors."
A publisher experiencing zero-percent to 5-percent returns may be sacrificing opportunities to sell books, Mettee believes, as business profits from additional sales gained through looser credit can, up to a point, exceed credit losses. The trick is to figure out that point. "So what is the magic number?" he asks. "It'll be different with each house, but shooting for 10-[percent] to 15-percent [maximum returns] might be a starting point."
Cover Story: Rethinking a World With No Returns
"Still," Mettee says, "publishers have to ask themselves if zero or very low returns is the goal they should be aiming for. A company that is experiencing zero credit losses is likely leaving a lot of profitable business to its competitors."
A publisher experiencing zero-percent to 5-percent returns may be sacrificing opportunities to sell books, Mettee believes, as business profits from additional sales gained through looser credit can, up to a point, exceed credit losses. The trick is to figure out that point. "So what is the magic number?" he asks. "It'll be different with each house, but shooting for 10-[percent] to 15-percent [maximum returns] might be a starting point."