Deconstructing Distribution
When the strategy of using commission reps or an in-house sales force is adopted, the publisher will need to have a warehousing and fulfillment operation to support them. For the publisher undertaking its own distribution, the cost of warehousing and fulfillment is typically expected to run 8 percent to 10 percent of sales.
Eugene G. Schwartz is editor at large for ForeWord Reviews, an industry observer and an occasional columnist for Book Business magazine. In an earlier career, he was in the printing business and held production management positions at Random House, Prentice-Hall/Goodyear and CRM Books/Psychology Today. A former PMA (IBPA) board member, he has headed his own publishing consultancy, Consortium House. He is also Co-Founder of Worthy Shorts Inc., a development stage online private press and publication service for professionals as well as an online back office publication service for publishers and associations. He is on the Publishing Business Conference and Expo Advisory Board.