Differences Between Trade Paper & MMP, Part II

This is the second of two posts on the differences between trade paper and mass market paperbacks (MMPs). Yesterday, we talked about the differences in size and in the quality of the paper used to print both types of books. Today we're going to look at the way the books are treated once they are removed from the shelves of stores.

Before we get to that difference, I'm going to detour for a moment to talk about the return/remainder system. You need to understand that system to understand the rest of this post. And it starts with how hardback books are handled.

Hardback books are sent to bookstores/retail stores essentially on consignment. Depending on the size of the chain, bookstores/retail stores purchase these books at a discount directly from the publisher or from a book distributor. Obviously, a chain like Wal-Mart gets a huge discount--based on the expected volume of their sales--which explains why Wal-Mart can sell books so cheaply. Chain bookstores like Barnes & Noble or Border's get a smaller discount than Wal-Mart does, and independent bookstores get an even smaller discount than the chain bookstores do.

All of these retailers purchase their shipments with the knowledge that they can return any unsold books. The retail outlet usually has to pay for the cost of shipping the books back, but they then receive full credit.

According to agent Richard Curtis, "this practice was originally created as an admirable incentive for booksellers to take chances on new writers." Essentially, the publisher guarantees that the bookstore won’t get stuck with the bill for a book that didn’t sell well.

When the consignment system began, returns were only about 10% of the total books shipped to retailers. In recent years, however, returns have gone as high as 50% to 60% of books shipped.

By the way, this is another issue confronting authors who self publish. Many writers who go to the so-called subsidy press companies (read here: vanity press companies) are unaware that the consignment/return system even exists.

After the hardback books are returned, they are often remaindered, meaning they are then resold at a huge discount to remainder specialists and retail outlets. The publisher is trying to salvage something from the returned books--if only the printing costs.

Remaindered books are placed on sale tables in bookstores, supermarkets and even used bookstores to be sold at a fraction of their original retail price. Today, I can buy remaindered hardback books that originally retailed for $25 for $5.99 in my local Tom Thumb supermarket or at a Half Price Books outlet. The books are new, just remaindered. All those books on the discount shelves at the front of your local Barnes & Noble are also remainders.

An easy way to tell that you are purchasing a remainder is to look to the white page edges of the book. There will usually be a black magic marker slash drawn across the pages on either the top or bottom of the book, signifying a remainder.

There is also an alternate system known as “remaindered on the shelf” where the remaindering process is streamlined. The original retailer takes a smaller credit on the unsold stock, but then doesn’t have the expense or bother of shipping them back. Instead, they move the books directly from their own retail shelf to their sales tables and mark down the price from the original retail price.

I recently learned from Joe Konrath's blog of a new phenomenon called "strip and bind." Instead of remaindering the returned hardback books, some publishers remove the hardback cover and rebind the book as a trade paper. They then ship the books back to retail outlets to be sold new at a price anywhere from $12 to $16. Selling the rebound book new again is a significant improvement (for the publisher) over the enormous hit they will take for remaindering the book.

Now that you understand the system, let's return to our discussion of trade paper books and MMPs.

Remember: we identified mass market paperbacks as the smaller books printed on much cheaper paper. A completely different system is in place for handling these books when they are removed from bookshelves.

Instead of shipping MMPs back for credit, their covers are ripped off (stripped) and sent back to the publisher as proof that the book didn't sell.

Stripping a MMP saves labor and shipping costs on a very cheap product. Publishers give credit for the MMP covers received back while the rest of the book can be recycled (pulped) locally. That is why you often see notices printed or stamped in mass market paperbacks saying, "If this book is sold to you without a cover, it is being illegally sold." That notice is meant to alert you that the bookstore ripped the cover off and sent it back to the publisher for credit. The store is, therefore, prohibited from turning around and reselling the coverless book again (double dipping by being paid twice for the same book).

You'll recall that trade paper books are larger than mass market paperbacks and printed on much heavier paper than a MMP. The name "trade paper" comes from the fact that, in addition to being sold to traditional bookstores, they are sold directly to the trade--airports, supermarkets, etc.

When a trade paper book is removed from retailers' shelves, its covers are not stripped. Trade papers are treated like hardback books instead of like MMPs. Rather than being stripped, the entire trade paper book is returned for credit and then remaindered.

What does all this mean to authors? Well, first of all, you get no royalties on remaindered books. But there is still an upside for the writer in remainders. Your book is still out there being sold, and you are still gaining name recognition--even if you don't pick up any money from those sales.

It's a simple concept. The more of your books that are out there circulating--whether new, used or remaindered--the more chances a reader will pick one up. Think of used or remaindered books as part of your publicity campaign. Even though you won't get paid for those sales, they are increasing your name recognition and giving you additional opportunities to develop new fans.

From personal experience, I know that I am rarely willing to invest $25 in a hardback by a new author. I prefer to buy new authors in MMP or trade paper format. However, I will often pick up a remaindered hardback by an unknown author to read. If the book is good, I will make a point of finding and purchasing other offerings by that same author to guarantee a royalty will accrue to him. It's my small way of supporting my peers.

I hope this post has been helpful in explaining one aspect of the publishing business.