Industry-standard discounts are discounts offered by publishers to retailers, typically between 40% to 50% of the list price; they may differ depending on book type and publisher. One common industry-standard discount type is called net price discounting; this is when retailers pay publishers less than the list price – for instance, if a book had an original list price of $20 but received a 40% discount, that retailer would pay $12 directly to the publisher for it.
Other industry-standard discounts are suggested, including short discounts – typically given to retailers ordering multiple copies at once and generally offering 40% of the list price off of 10 books requested or 50% for 100 or more copies called -. For instance, books that list at $20 might receive either 40% off for orders of 10 copies or 50% off when 100 or more copies are ordered simultaneously.
Discounts exist to encourage retailers to buy and sell more books. Publishers can increase sales by making their books more affordable for retailers while creating an even playing field among various retailers.
Industry-standard discounts are vitally crucial to books and publishing for many reasons:
- They ensure books are priced consistently across retailers, making it easier for customers to compare deals across stores and select their favorite book at the best price.
- Industry-standard discounts help level the playing field between independent bookstores and large chains by forcing all retailers to provide equal discounts; this allows smaller bookstores to compete more effectively for customers while helping keep chain retailers at bay.
- Standard values support overall industry health by making books affordable and accessible to many people.