On the Economy of Machinery and Manufactures

by Charles Babbage

391. Having now explained all the arrangements in printing the present volume, let us return to section 382, and examine the distribution of the L915 paid by the public. Of this sum L207 was the cost of the book, L40 was taxes, L362 was the charges of the bookseller in conveying it to the consumer, and L306 remained for authorship.

The largest portion, or L362 goes into the pockets of the booksellers; and as they do not advance capital, and incur very little risk, this certainly appears to be an unreasonable allowance. The most extravagant part of the charge is the thirty-three per cent which is allowed as profit on retailing the book.

It is stated, however, that all retail booksellers allow to their customers a discount of ten per cent upon orders above 20s., and that consequently the nominal profit of forty-four or thirty-three per cent is very much reduced. If this is the case, it may fairly be enquired, why the price of L2 for example, is printed upon the back of a book, when every bookseller is ready to sell it at L1 16s., and why those who are unacquainted with that circumstance should be made to pay more than others who are better informed?

392. Several reasons have been alleged as justifying this high rate of profit.

First, it has been alleged that the purchasers of books take long credit. This, probably, is often the case, and admitting it, no reasonable person can object to a proportionate increase of price. But it is no less clear, that persons who do pay ready money, should not be charged the same price as those who defer their payments to a remote period.

Secondly, it has been urged that large profits are necessary to pay for the great expenses of bookselling establishments; that rents are high and taxes heavy; and that it would be impossible for the great booksellers to compete with the smaller ones, unless the retail profits were great. In reply to this it may be observed that the booksellers are subject to no peculiar pressure which does not attach to all other retail trades. It may also be remarked that large establishments always have advantages over smaller ones, in the economy arising from the division of labour; and it is scarcely to be presumed that booksellers are the only class who, in large concerns, neglect to avail themselves of them.

Thirdly, it has been pretended that this high rate of profit is necessary to cover the risk of the bookseller's having some copies left on his shelves; but he is not obliged to buy of the publisher a single copy more than he has orders for: and if he do purchase more, at the subscription price, he proves, by the very fact, that he himself does not estimate that risk at more than from four to eight per cent.

393. It has been truly observed, on the other hand, that many copies of books are spoiled by persons who enter the shops of booksellers without intending to make any purchase. But, not to mention that such persons finding on the tables various new publications, are frequently induced, by that opportunity of inspecting them, to become purchasers: this damage does not apply to all booksellers nor to all books; of course it is not necessary to keep in the shop books of small probable demand or great price. In the present case, the retail profit on three copies only, namely, 4s. 6d., would pay the whole cost of the one copy soiled in the shop; and even that copy might afterwards produce, at an auction, half or a third of its cost price. The argument, therefore, from disappointments in the sale of books, and that arising from heavy stock, are totally groundless in the question between publisher and author. It shold be remarked also, that the publisher is generally a retail, as well as a wholesale, bookseller; and that, besides his profit upon every copy which he sells in his capacity of agent, he is allowed to charge the author as if every copy had been subscribed for at 4s. 2d., and of course he receives the same profit as the rest of the wholesale traders for the books retailed in his own shop.

394. In the country, there is more reason for a considerable allowance between the retail dealer and the public; because the profit of the country bookseller is diminished by the expense of the carriage of the books from London. He must also pay a commission, usually five per cent, to his London agent, on all those books which his correspondent does not himself publish. If to this be added a discount of five per cent, allowed for ready money to every customer, and of ten per cent to book clubs, the profit of the bookseller in a small country town is by no means too large.

Some of the writers, who have published criticisms on the observations made in the first edition of this work, have admitted that the apparent rate of profit to the booksellers is too large. But they have, on the other hand, urged that too favourable a case is taken in supposing the whole 3000 copies sold. If the reader will turn back to section 382, he will find that the expense of the three first items remains the same, whatever be the number of copies sold; and on looking over the remaining items he will perceive that the bookseller, who incurs very little risk and no outlay, derives exactly the same profit per cent on the copies sold, whatever their numbers may be. This, however, is not the case with the unfortunate author, on whom nearly the whole of the loss falls undivided. The same writers have also maintained, that the profit is fixed at the rate mentioned, in order to enable the bookseller to sustain losses, unavoidably incurred in the purchase and retail of other books. This is the weakest of all arguments. It would be equally just that a merchant should charge an extravagant commission for an undertaking unaccompanied with any risk, in order to repay himself for the losses which his own want of skill might lead to in his other mercantile transactions.