Post 373 Lulu POD publisher price increase

‘08 Oct 03 I had decided to go with Lulu publishing http://www.lulu.com/a while back but when I went to finalize getting my books out there, I found that Lulu had increased the price at the end of Sept. I submitted a post to the Lulu Forums >Feedback on "A Special Message from Lulu’s Founder & CEO"

(Post 1) Well it looks like I’ll be going else where, as this “gouging” is no different than what the oil companies are doing. Lulu is now informing us that their manufacturing costs have almost doubled, and if that is the case, then there is definitely some POOR management that allowed this problem to go on for so long, but….. I suspect that greed is more of an issue in this case when you examine the data.

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Retail Book Cost Calculator

Choose a book to price.
How many pages? 200
Retail Royalty
Currency $US
Retail Min. Royalty: ……………………..$1.00
Lulu Fee: ……………………………….$0.25
Manufacturing cost per unit:……………$5.50
Retail Markup: 5.50 x 2.455 = ………….$6.75
Total Retail Price:……………………..$13.50
+ shipping and handling………………..$
+Taxes ………………………………..$_______
Total ………………………………….$

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New Price Page

$4.00 – Page cost (2¢/page x 200 pages)
+4.53 – Binding Fee
$8.53 – Manufacturing Cost

Total Retail Price breakdown
Manufacturing ………………………………..$8.53
Min. royalty fee ……………………………..$1.00
Lulu royalty fee $.25 …………………………$0.25
Total manufacturing cost/unit ……………….$9.78
Retail markup 9.78 x 2.455…………………..$14.22
MSRP………………………………………..$24.00
+ shipping and handling………………………$
+Taxes ………………………………………$_______
Total ……………………………………….$

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While ~$4.00 may not seem like a lot, when that increase is passed along to the retail sector, it basically adds another $7.47 to the $4.00….. making the suggested retail price $11.47 higher than before, (That’s a 78% increase in the MSRP) not counting, shipping and handling plus taxes…

The other thing that is not seen; is that most of the books that Lulu prints are ones that they sell directly to the public at the MSRP…. So in reality, they are not just working on their manufacturing margins, but are in fact.. getting the full MSRP, minus, whatever royalty fee that the author gets.. That means that under the old pricing schedule they would make $12.50/ book, and now under the new pricing schedule they would be making $23.00/book…

There are a couple of other POD publishers that I was considering before I chose Lulu, and I’ll be going back to have another look at them, as I’m basically looking for a printer with a fair price that can ship to individual customers on request.

Shenreed

PS: this post carries on to Post 375 Lulu and a Insight on Publishing my Book

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