How does CrossBooks calculate royalty payments?
Royalties are based on the payments we actually receive from the sale of printed or electronic (e-book) copies of your book, minus any shipping and handling charges or sales and use taxes. Also, we offer discounts to retail and wholesale customers, so the royalty amount you receive depends on what type of customer bought your book and any discount they received. Here’s an example of a common sales transaction: The cover price (list price) for your book is $17.95. Your royalty rate is 50 percent. A retailer places an order for your book through Ingram Book Company, a wholesaler. Ingram, in turn, purchases your book from CrossBooks at a 48 percent discount (our standard discount to wholesalers). Ingram then resells the book to the retailer. Your royalty on this sale of your soft cover book will be calculated as follows: Retail Sale Example: $17.95 (SRP “Suggested Retail Price”) – $8.62 (48% Retail Discount) = $9.33 (Net Retail Discount) – $4.97 (COGS “Cost of Goods Sold”) = $4.36 (Net “C
