We have shown in Chapter XXI, p. 144, the component parts of the expense of each copy of the present work; and we have seen that the total amount of the cost of its production, exclusive of any payment to the author for his labour, is 2s. 3d.(1*)
Another fact, with which the reader is more practically familiar, is that he has paid, or is to pay, to his bookseller, six shillings for the volume. Let us now examine into the distribution of these six shillings, and then, having the facts ofthe case before us, we shall be better able to judgeofthe meritsofthe combinationjust mentioned, andtoexplainits effects.
Distribution of the profits on a six shilling book
Buys at; Sells at; Profit on capital expended
s. d.; s. d.
No. I—The publisher who accounts to the author for every copy
received; 3 10; 4 2; 10 per cent
No. II—The bookseller who retails to the public; 4 2; 6 0; 44
Or, 4 6; 6 0; 33 1/3
No. I, the publisher, is a bookseller; he is, in fact, the author's agent. His duties are, to receive and take charge of the stock, for which he supplies warehouse room; to advise the author about the times and methods of advertising; and to insert the advertisements. As he publishes other books, he will advertise lists of those sold by himself; and thus, by combining many in one advertisement, diminish the expense to each of his principals. He pays the author only for the books actually sold; consequently, he makes no outlav of capital, except that which he pays for advertisements: but he is answerable for any bad debts he may contract in disposing of them. His charge is usually ten per cent on the returns.
No. II is the bookseller who retails the work to the public. On the publication of a new book, the publisher sends round to the trade, to receive 'subscriptions' from them for any number of copies not less than two. These copies are usually charged to the 'subscribers', on an average, at about four or five per cent less than the wholesale price of the book: in the present case the subscription price is 4s. 2d. for each copy. After the day of publication, the price charged by the publisher to the booksellers is 4s. 6d. With some works it is the custom to deliver twenty-five copies to those who order twenty-four, thus allowing a reduction of about four per cent. Such was the case with the present volume. Different publishers offer different terms to the subscribers; and it is usual, after intervals of about six months, for the publisher again to open a subscription list, so that if the work be one for which there is a steady sale, the trade avail themselves of these opportunities of purchasing, at the reduced rate, enough to supply their probable demand.(2*)
381. The volume thus purchased of the publisher at 4s. 2d. or 4s. 6d. is retailed by the bookseller to the public at 6s. In the first case he makes a profit of forty-four, in the second of thirty-three per cent. Even the smaller of these two rates of profit on the capital employed, appears to be much too large. It may sometimes happen, that when a book is enquired for, the retail dealer sends across the street to the wholesale agent, and receives, for this trifling service, one fourth part of the money paid by the purchaser; and perhaps the retail dealer takes also six months' credit for the price which the volume actually cost him.
382. In section 256, the price of each process in manufacturing the present volume was stated: we shall now give an analysis of the whole expense of conveying it into the hands of the public.
The retail price 6s. on 3052 produces 915 12 0