News

Daunt's flat rate discount "could hit author royalties"

01.01.70 | Graeme Neill

Waterstone’s proposed higher discount, flat rate terms for publishers, put forward in exchange for scrapping promotion fees, could hit author royalties, according to agents and the Society of Authors.

Contracts vary widely, but typically contain a high discount clause which kicks in at a particular discount level, after which the author receives a diminished proportion of the headline royalty agreed with their publisher. Up to three levels of discount can feature, with the royalty received by the author getting smaller at each level. High discount clauses tend to come in at around 50%–65% discount. Waterstone’s is believed to have been asking some publishers for discounts of around 59%–60%.

Agent Carole Blake warned that the effect on authors could be “significant”, depending on how vigorously their contracts had been negotiated. It could also affect authors on multi-book contracts negotiated several years ago, she said. “But if would be good news if it turns Waterstone’s around,” she added.

Society of Authors general secretary Nicola Solomon said: “On new contracts, we’ll be advising people to bear [Waterstone’s new flat rates] in mind and to look closely at high discount clauses and see what they mean for you. We’ll be watching closely, but people do not have standard contracts.”

Simon Trewin of United Agents said he was in favour of any development which helped bookshops tailor their offers to their local community. He said: “Waterstone’s is just a tiny part of the market and what matters is the volume of books that goes out there. You have to look at the totality of earnings – very few books are leaving the warehouse at standard discount.”

Comments: Scroll down for the latest comments and to have your say

By posting on this website you agree to the Bookseller comments policy. Comments go direct to live please be relevant, brief and definitely not abusive. Report any "unsuitable comments by clicking the links"

Sort: Oldest first | Newest first | Readers' most recommended

By Nupreader

Why do you think authors have been complaining for many years about the high discounting of their titles? It is no secret that publishers have been giving the chains, and Amazon etc, these deals and the poor author often only gets a reduced royalty, not on the price the book sells at but on the discounted price the bookshop pays. I hope Mr Daunt will not make the originators of his product pay for simplifying the system. And not only the author suffers. He has been an independent bookseller and knows how damaging high discounting to the Big Boys can be for the smaller shops.

Wed, 05/10/2011 - 14:53
By Bookishworm

Yes Bookish, what exactly is it that makes you think you are entitled to have public conversations about the internal dealings of a private business? Don't you realise that this nonchalant approach to confidentiality puts your bookshop at risk, since any one of your competitiors only has to look here to see what you are thinking? Grow up for God's sake.

Mon, 19/09/2011 - 11:34
By L Jackson

None of this should be discussed in this open forum. It just shows that Daunt, really does not know what to do with the business he has. He throws out his line and sees what he catches.

Sun, 18/09/2011 - 09:19
By ffs

Do be quiet Bookish. Which bit of confidentiality aren't you getting?

Sat, 17/09/2011 - 08:51
By Bookish

Yes that's the amount I heard..it's not that unusal that what we got as Ottakar's on promoted titles. The extra discount has been given accross the whole range as the returns will be a fraction of what we return now...apparently!

Sat, 17/09/2011 - 07:24
By iucounu

Do you really mean 59-60%, or is that a typo?

Fri, 16/09/2011 - 13:15
By iucounu

Do you really mean 59-60%, or is that a typo?

Fri, 16/09/2011 - 13:15
By Bookish

Yes that's the amount I heard..it's not that unusal that what we got as Ottakar's on promoted titles. The extra discount has been given accross the whole range as the returns will be a fraction of what we return now...apparently!

Sat, 17/09/2011 - 07:24
By ffs

Do be quiet Bookish. Which bit of confidentiality aren't you getting?

Sat, 17/09/2011 - 08:51
By L Jackson

None of this should be discussed in this open forum. It just shows that Daunt, really does not know what to do with the business he has. He throws out his line and sees what he catches.

Sun, 18/09/2011 - 09:19
By Bookishworm

Yes Bookish, what exactly is it that makes you think you are entitled to have public conversations about the internal dealings of a private business? Don't you realise that this nonchalant approach to confidentiality puts your bookshop at risk, since any one of your competitiors only has to look here to see what you are thinking? Grow up for God's sake.

Mon, 19/09/2011 - 11:34
By Nupreader

Why do you think authors have been complaining for many years about the high discounting of their titles? It is no secret that publishers have been giving the chains, and Amazon etc, these deals and the poor author often only gets a reduced royalty, not on the price the book sells at but on the discounted price the bookshop pays. I hope Mr Daunt will not make the originators of his product pay for simplifying the system. And not only the author suffers. He has been an independent bookseller and knows how damaging high discounting to the Big Boys can be for the smaller shops.

Wed, 05/10/2011 - 14:53

Latest Jobs

eProduct Manager (Maternity Cover)
eProduct Manager (Maternity Cover)...
Available on request
International Sales Executive
We have an exciting opportunity to...
Available on request
Education Co-ordinator
Hachette Children’s Books, part...
Competitive
 

TheBookseller