Printing and inventory management are some of the most challenging aspects of publishing. Done correctly (or somewhat successfully), it can improve cash flow and help your business succeed. Unfortunately, because most of us operate somewhat differently, there is no secret formula that works for everyone. We publish in different genres, use different paper stocks, have different distribution models, etc. Throw in a confusing supply chain, and we have a complex business. But does it have to be?

Navigating Different Publishing Models

Over the course of my career, I’ve had the pleasure of working at four very different types of publishers and Ingram Content Group, under the Lightning Source division. Each publisher operated differently. One publisher owned and operated its own warehouse. Another publisher operated a leased warehouse space. Two publishers had no warehouse space, all stock shipped directly from printers over to fullservice distributors. What have I learned? Nothing is straightforward.

The Benefits and Challenges of POD

Generally speaking, new publishers and authors start out using print-on-demand (POD) to get their business off the ground, what I refer to as the gateway drug. Within this model, full color can be prohibitively expensive and quality subpar with offset printing. To be fair, though, both digital printing technology and quality have vastly improved over the past 10 years. POD does provide some nice benefits, which include freeing up capital, the ability to do global distribution, and generally favorable online availability messaging (e.g., in stock). It’s a good solution for getting your business off the ground and limiting financial exposure. When I launched Callisto Media, we were 100% POD and profitable within six months. Eventually, it made sense for Callisto Media to go hybrid, transitioning high-volume titles to offset as the business took off.

Making the Transition to Offset Printing

Making the transition from POD to offset can be a bit scary and overwhelming. The per-unit cost will be attractive, but now the publisher/author is responsible for making full payment to the printer within 30-90 days, and the clock starts ticking once the books are shipped from the printer. Also, publishers are responsible for paying the freight, customs, clearance, and local delivery fees. Be sure to add all costs up as you consider offset printing versus short run and POD. To avoid getting into cash flow troubles, it’s best to be confident inventory will sell in a “reasonable” amount of time. Based on my current paper specifications, I generally find offset to become cost-effective when printing 1,500+ copies.

If sales of your titles range wildly (as they currently do for me), my recommendation is to use a blended approach. At TOKYOPOP, we don’t own or operate our own warehouse. All of our stock is shipped directly from each printer to our full-service distributor for the trade market and to Diamond for the direct market. For backlist titles, which only sell a few copies each month, our strategy is to do short-run digital printing with RPI (good, reliable quality). For most of our frontlist titles and top-selling backlist titles, we print offset in Canada and China. As previously mentioned, it generally makes sense printing offset for 1,500 or more copies. Do your homework, and don’t forget to factor in freight, duties, and local delivery.

Negotiating Print Rates and Managing Inventory

I often get asked whether publishers/authors can negotiate print rates. The short answer is it depends on market conditions (e.g., paper supply, print capacity). During COVID-19, the supply chain was a mess. Book sales increased and publishers were scrambling to print domestically, resulting in printers being at capacity. Essentially, demand was higher than supply, and this resulted in printers increasing print rates. Now that the global supply chain is back to normal and industry book sales have pulled back a bit from the peak days of COVID-19, printers have plenty of capacity and are vying for volume.

Publishers are currently in a good position to negotiate print rates with existing partners. POD is generally tough to negotiate (fewer players in the market) unless your annual volume is ticking up nicely and/or your book types fall within the sweet spot for digital printers. Historically, offset printing in China has been the most advantageous when it comes to rates and quality. I am hearing Latin America has become an attractive option for some publishers.

Be sure to do your due diligence before working with any printer, and may the force be with you!

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