From Dennis Lowery, President of Adducent |
Currently our titles are available in these regions:
- North America
- United Kingdom
- Western Europe
- South America
In the United States, the United Kingdom and Australia, where we have physical production and distribution facilities that provide those services, we can print and ship efficiently and cost effectively to that countries respective local markets. And their proximity enables us to reach markets in adjacent countries, albeit at a somewhat higher cost to retailers in those countries due to international shipping and other import/export related expenses. So we are very pleased to announce business developments that improve our title availability and lower cost for retailers in some of those extended markets.
Expanded Global Reach Into Foreign Local Markets
Adducent has entered into a new agreement with our production and distribution partner that will expand our capabilities further globally. Specifically we now can offer “wholesale like” Print to Order solutions in countries where we do not have physical production services. Our partners will now show titles as available locally in their market and will print them locally as orders come in from their sales channels and retailers.
We are announcing the immediate availability in local markets in Brazil and Germany at this time. As additional partners are vetted and contracts signed, we will make formal announcements on each partner. While titles have been available in these countries previously; they were not manufactured locally, which increased the retailers cost to offer our titles to their customers and higher cost impacts buying decisions.
This new agreement and production capability make our titles locally available to retailers at reduced cost to them without lowering our list/retail prices or increasing our wholesale discount, which would require adjusting royalty rates we pay our authors. This enhancement and expansion does not entail our dealing with local printers, unsecure file distribution or currency exchange issues or concerns—no inventory, shipping headaches or import/export problems that complicate and make more costly getting our titles into these local markets. This allows us to never miss a sale in that market and is a possible front list entry solution into foreign language markets. This service offering emulates our current wholesale channel and we (and our authors) will receive compensation for each book sold in the market at the title’s current list price and wholesale discount in US$.
Pricing, Formats & Turnaround
As the publisher we do not set the price in these local markets. We establish our titles list/retail price in US$ and discount level, which sets the wholesale price we are paid for each book in US$. The local partner will convert this to local currency, add margin and print cost, and then determine the price to sell the book in the market in local currency. This is a non-issue for our authors as they are paid royalties based on list/retail price per their publishing agreement with Adducent.
Each market will have different capabilities for printing depending on the competencies of the local printer. Not all formats will be immediately available in all markets. In local German markets hardback and trade paperback versions of our titles will be available; local markets in Brazil will only have paperback versions available at this time.
The expected turn-around times in each local market for the manufacture and delivery of books will vary by partner but the target is 2 days.
The Order Process
- Our print partners will make the title metadata available to the local sales channels and retailers and collect orders.
- When an order is received our production partner will be notified and the title file will be transferred to the print partner for printing and then the file will be destroyed.
- Our production partner, headquartered in the US, will maintain file integrity, file security, reporting and payments back to Adducent (the publisher) in the same manner it does today for sales in current markets.
Our production partner has developed a rigorous process in selecting and certifying print partners adherence to production standards. Our production partner will maintain ongoing quality control and monitor processes to make sure each partner meets the guidelines and quality standards set. Books printed by our partners will adhere to our specifications, as the production will be driven by the original book production file.
So our world gets a little smaller—our reach a little bit farther—markets drawing nearer and over time our titles will get more opportunities as we grow and expand our capabilities even further in more foreign local markets.