MB
Don't know about CD margins, but book margin is considerably less than 50-70%. From the American Booksellers Association site:
bookweb.org
<<For the purpose of initial planning of both inventory costs and
planning ratios, the prospective bookseller should use a basic 40
percent discount from selling price. Remember to add estimated
freight costs, which booksellers frequently pay.
Discounts on nontrade titles, such as texts or scholarly reference
titles, are usually smaller, 20 percent being the most common with
special agency plans allowing up to 33 percent. Such titles are
traditionally referred to as "short" discount titles, although there are
also "net pricing" plans. These state only a set price to the
bookseller without reference to a discount from a suggested list
price.>>
Whan I sold books in the late 70's our small chain got up to 47% (before shipping--which was about 6%-books are heavy) from some of the major publishers, but usually closer to 40-42%. The big chains can do slightly better; how much better is going to make the ABA's and their adversaries' lawyers a lot of money. This was all back in the stone age when books were sold at list price, period. Now you have to factor in AMZN and others' 20% discount. At least BKS & BGP sell coffee to the posers; I'm not sure how AMZN plans to make a profit.
Sorry to be so late responding. We were at my wife's daughter's farm in downstate Illinois, far from any ISP. Last time we were there on a Monday was Oct. 27, 1997<G>.
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