Sometimes you have to jump even if you don’t have a parachute. I know because it’s happening to me right now.
If you’ve been listening to the show then you know we are profitable, even if barely so, but it’s been a struggle to get through most months because our production costs are so high.
Right now we are paying $6/book and selling them for 1 for $20, 2 for $30, or 3 for $40 at shows. If you look at that profit margin, it’s not very good.
Max we are making 3.5x our margins. Since we have con costs and operational costs, or profit was non-existent even if we sold a TON of books.
A good, nice, healthy profit margin is 10x production costs. If you can 10x production costs, you are going to be able to make a decent profit after operational costs, at least at scale.
Scale is when you grow your business over time. That growth is scaling your business.
So long story short, we had to make a change. A big change. If we are going to be successful, we had to somehow find a way to either charge more…
Listen to this episode with a 7-day free trial
Subscribe to The Author Stack to listen to this post and get 7 days of free access to the full post archives.
