| Gross and net profit for China book printing books |
| Keywords: China book printing, book printing services, book printing company |
The gross profi t for China book printing books is what is left after the unit cost and royalty have been deducted from the net sales revenue.
The gross margin is the percentage of the net sales revenue that forms the gross profit. In the above example, the gross profit forms 50 per cent of the revenue.
The management may say to their editors, ??We want to see each book printing publishing proposal attaining a minimum gross margin of 55 to 60 per cent?．. That percentage represents the sum of money the publisher would have left after the production costs and royalties have been deducted from the NSR, provided all the copies were sold. The sum would, in theory, be sufficient to recover the overheads and expenses and to provide a net profit. The publisher?．s overall net profit is the sum left after all the costs of running the business have been deducted. Overheads for a publisher would include the costs of salaries, marketing and sales, warehouse and fulfi lment, general administration, office space, heating, lighting, and other items such as bank interest and bad debt.
The editor strives to balance the income and costs so that the desired gross profit is attained. This is called value engineering. If the gross profit is too low, the production costs could be reduced (fewer pages, fewer illustrations, cheaper paper) or the author?．s proposed royalties cut. Conversely the price and sales estimate could be increased. But while the publisher worries about costs and margins, the end-user is concerned with price and perceived value, and does not care about the costs, the number printed or the author?．s effort. Reducing the production values on a book, for example by using cheaper paper or fewer colours for the cover, may harm the book?．s sales. It will depend on the type of publishing and the expectations of the market ：C which are high in some markets like art or cookery books. For an editor publishing a book with a limited market, there remains the fatal temptation to imagine a nonexistent larger market and to increase the print-run in order to lower the unit cost.
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