Everyone has a blog these days. There are blog sites related to every subject imaginable and some whose hosts just ramble on about nothing. Do you visit other blogs? Are you addicted to reading blogs? Some people are, you know. Do you have favorite blog sites that you frequent—those related to writing and publishing, for example? Whatever your blog habits, I appreciate that you are reading this entry on my blog site. If you’re new here, I hope that you will check out our archives and that you will visit here often.
I’m Patricia Fry, 35-year veteran within the realm of writing and publishing. I strive to educate and inform readers who are interested in writing and publishing. This blog is just one mode through which I teach and provide resources for freelance writers and authors as well as those hoping to enter into the realm of publishing through their poetry, article/story-writing or a book manuscript.
I attempt to keep you abreast of what’s going on in the publishing industry. I post warnings. I alert you to new resources and opportunities. I share with you and I ask you to share with me. This blog site has a purpose. It is an extension of my knowledge base related to publishing as well as my constant research, work and experiences within this arena. My goal, through this blog, is to help you to understand your options and opportunities (whether you are seeking a publisher, marketing a book or attempting to earn some money as a freelance writer). But I also want you to know your responsibilities as a published author or freelance writer. Yes, along with the title—the role—comes responsibility. This is true no matter what field or area you are involved in. I think that most Americans are getting that picture loud and clear when they watch what’s currently happening with our economy, for example.
We, as individuals, have responsibilities when it comes to making the right choices be it a loan we’re pursuing, using credit, spending or investing. But so do those heading up big business and our government have responsibilities and obligations they must consider and fulfill.
On a smaller scale and pertaining to publishing, let me tell you about something that has recently come to my attention. A while back, I may have mentioned this in a blog, a SPAWN member felt he was “taken” by a fulfillment and distribution company to the tune of $3,000. This company sold all of 5 (five) books for him over a period of a few months. The thing is, the company did what the contract said they would do. But our member was counting on cashing in on what they said verbally, as well. And nothing they told him in their meeting, was pursued.
This week, someone in one of my online discussion groups complained about being bamboozled by a fulfillment and distribution company (I think it was the same company). Others chimed in with similar tales of woe. They claimed that this company did not sell anywhere near the number of books they expected, yet they were still being charged a huge amount of money. But what everyone seems to have forgotten is that these companies typically (and I’m sure their contracts reflect this) do not sell your books. They warehouse them for a fee. They take orders on an 800 number for a fee. They ship books out when orders come in. (Yes, for an additional fee.) But, it is my understanding that they do not solicit orders. They do not promote your book. It is up to the author to promote the book and make the sale. Without the author’s (or the author’s publicist’s) hard work, those books stored in boxes on pallets in the fulfillment company’s warehouse are just going to continue sitting there. The fulfillment company needs you—the author—to promote, promote, promote; to get necessary exposure; to locate his audience, approach them and show them the book. In order for the fulfillment company to do their job, the author must do his.
Have you worked with a fulfillment company? I’d like to interview some of you who have stories to tell (good and bad) about your experiences with fulfillment and/or distribution companies.
In the meantime, be sure to read my book, “The Right Way to Write, Publish and Sell Your Book.” The information, resources and guidance in this book will keep you from making costly, embarrassing and self-defeating mistakes. ( http://www.matilijapress.com/rightway.html
For a major information and resource center and support system for hopeful and published authors, join SPAWN (Small Publishers, Artists and Writers Network) http://www.spawn.org
Patricia:
I read your comments today about fulfillment companies and wanted to respond since I am responsible for sales and marketing for ProLog Logistics, a third-party fulfillment company.
There is a distinction between a distributor and a fulfillment company. The former typically buys the inventory and is responsible for reselling the product, which includes the warehousing and order fulfillment process. Typically, the seller is receiving their funds at the time that the inventory is purchased by the distributor (or based on some terms) and the margin provided the distributor is the source of their profit. In this case, unless the seller has agreed to allow the distributor to return the product under certain conditions, the distributor bears the risk of owning and selling the inventory, as well as the costs for reselling and shipping the product.
Fulfillment companies do not traditionally take ownership of the product and are not responsible for generating sales. The fulfillment company is providing a contracted service related to warehousing, order processing and, in many cases, customer service. This is very consistent with the description that you outlined in your comments.
If a fulfillment company presented that they would take responsibility for creating sales for the seller, this would be somewhat unique. I suppose you might find some that would misrepresent their services during the sales process, but this typically will just result in a poor reputation that will injure their business long-term.
We have been in business for over 13 years and have never had a client confused on our role as your describe. As you mention, our contract is very clear as the services that we provide.
The fees that you mention being charged are most likely related to storage costs and monthly minimums. The worst case scenario for most fulfillment companies is if product is stored at their facility, but little to no orders are processed. In this scenario, these minimums kick in to ensure that the fulfillment company is realizing a reasonable return on the utilization of space. Fulfillment companies are generally not a cost-effective way to store excess/dead inventory. However, they can represent a very cost-efficient alternative if the product is moving.
The level of monthly minimum charges being incurred are typically related to the amount of storage required. In our case, we have a very flexible system that allows us to minimize these charges. However, many fulfillment companies have a hard cap requirement, which can be difficult for smaller companies to sustain. We structure ourselves to work with clients of all size (and the terms set needs to support this), but some fulfillment companies are not willing to do the same.
In terms of confusion with the price structure, most fulfillment companies structure their pricing in a “ala carte” fashion that most client find difficult to understand and impossible to project the total cost that they will pay to the fulfillment company. This structure is perpetuated by the fulfillment companies for two reasons. First, they don’t want to spend the time with the client during the sales process to truly understand their requirements and tailor a simplified quote. Second, a client’s business tends to change over time, which leads the fulfillment company to present a terms structure that will automatically adjust to changes in the business. Unfortunately, the same structure can cause significant confusion, dissatisfaction and a loss of trust.
Our approach is different to address these issues. We spend a fair amount of time during the selling process understanding the details of a client’s requirements and business. We then generate a simplified structure that presents the client with a single unit fee that encompasses all their services. This makes are pricing simple, transparent and eliminates any chance that the client will be surprised by the actual cost once an integration is completed. It does require that the client and our company work together over time to reevaluate pricing periodically if there are major changes in the client’s business. However, we build in sufficient flexibility into the structure of our quotes such that this not typically required.
ProLog is very focused on developing long-term relationships with our clients. As a result, many of clients come from referrals from existing clients. I think you find that the experience with our company would be significantly different than the situation outlined in your comments.
Let me know if I can help you or your readers in any way.
John Boresi
VP-Sales and Marketing
ProLog Logistics, Inc.
http://www.prologlogistics.com
619-229-2200, ext. 4005
Hello John,
Thank you for your input. Well said! We always appreciate useful and qualified information. It still all comes down to the author taking responsibility through education, by becoming informed and by reading and understanding any contract they are considering. Education is key and you have certainly provided a good lesson in fulfillment and distribution.
Patricia