A to Z: Going Indie: P is for Profitability

 

Welcome to Blogging A to Z! My theme this year is Going Indie. I hope you enjoy it. Don't forget to check out the other participating blogs.  

So now that I'm trying to treat my writing life with a little more respect and be more of a businesswoman about it, I have to pay attention to things like profits. And the big question is how to measure that. 

There's a lot that I've bought for my writing life (see my M post on Money for details), but which things count in my reckoning for whether a book is profitable yet? 

Mostly, I've decided that things I buy that are for author life in general or serve as infrastructure don't go in the reckoning for any single book. So, buying an author banner, getting bookmarks made, paying a table fee at an event, doesn't count. 

But things specific to that book like editing, book cover, buying copies, etc. DO count. 

So for Not Too Late as an example:  I came up with $726.10 as my starting number, my "sunk cost." 

That includes: 

• $62.50 for Vellum (not sure this should actually count, because I'll use it for ALL my future books, but if it does count, that is 1/4 of what the software cost me, since I've used it on 4 books so far)
• $59 for two ISBNs, one for ebook, one for paperback (since I bought in a group of ten--they're cheaper if you buy more at a time)
•  $196.80 editing
• $400 book cover 
• $7.80 for a paper proof copy 

Since then, I've purchased 68 copies of the book for resale. I know that's a weird number, but it's because I shipped to bookstores in weird amounts for consignment arrangements as well as buying for my own in-person re-sale. I've sold 9 copies at full price in person, three at lower price to the cover artist, and one through one of those consignment arrangements. 

When I track how much I spent buying books, I always include the shipping, too. So each book costs me between $4 and $5 on average. So, the copy that sold through consignment paid me $9, but it's really $4 or $5 profit since I had to buy the book in the first place. I hope that makes sense. The copies I sell in person make me $10 or $11 each, for comparison. 

So I've put all that into a spreadsheet and currently, I'm further in the hole than I started, at $834.35. I'm not worried though, because, like I said, this book hasn't actually released yet. This is all PRESALE still.

My *hope* is that the book will be "in the black" within its first six months. So, just in time for Halloween. I'll let you know how it pans out!