Sometimes we like to write a bit about the nuts and bolts of business. We don’t want to be banging on about it at the moment since there is wall-to-wall coverage of far worse things in the recession than some Highlands independent publisher’s odyssey. But once in a while it is good to look at the plain old pounds, shillings and pence of publishing.
We get e-mail newsletters from the publishing industry (they are free – we stopped taking the subscription magazines a while back). In common with all other industries there are large cutbacks being announced in staff and print runs at the major publishers – three or four in the last week: 15% cuts in staff typical, slightly higher percentage cuts for titles and list. If you already have a publishing deal – way to go. Hang onto it – they ain’t making any more just now! Of course, since there only two of us we might have to lose an arm or a leg to keep up with staff-reduction trends.
It is very hard for us to say whether the economic conditions are affecting our sales – because we have neither much of a historical pattern to compare this month with (we have been nought-to-sixty in two years), nor a uniform flow of new titles month by month. But overall this month we took a kicking from Waterstones returns (they come in bulk every 3 months or so) which is barely outweighed by outgoing sales – at least not by the time you take the distributors’ fees off. On the other hand we did OK with some sales at one-off events, some author sales etc. And sales from the website, which generate about 5 times as much profit-per-copy as a retail sale, were better than average. So we keep chugging along. The bank can’t chop us off at the knees, because we don’t have a loan except from ourselves.
How can we possibly keep going like that? Well, we also generate some profit from hiring out our typesetting services to other smaller publishers (yes , there are one or two!) – normally ones who have niche markets or charitable status to back up their book sales and can therefore afford to outsource. We, on the other hand, continue to do absolutely everything conceivable ourselves – and will likely extend that to include the accounts this year (I already did the bookeeping since we started). Having done that, I believe we will have taken our costs and overheads down to absolute bedrock. We outsource the actual printing, of course, and ‘mass’ distribution. And that is all. (Well, all those of you in business for yourselves will be thinking ‘there’s always more to cut off costs’ – but I promise my pick-axe is hitting solid rock pretty consistently.)
So actually this isn’t a grump about recessions and tough times at all. We thank our lucky stars every day that when we want to make a decision for TRP then we can just go ahead and do it – right there and then. A board meeting over the porridge. No committee to convene (except maybe a quick word with the odd cockerel or sheep). We are now running at a tiny operating profit, we have big ideas for turning that into something sustainable by the end of the year, and we are still getting to work with some startlingly talented people. Two writers have asked me in the last week or so whether setting up a publishing company was a clever thing to have done. The answer was – not unless that is really what you get satisfaction out of. Which we do.
David