According to Dorchester, retail sales are down 25% and it is getting harder and harder to get its titles into stores because shelf space for mass market books has been reduced. They even had to let their field sales force of seven go.
The ebook business, however, has had “remarkable growth” which he expects to double again in the next year. Still, digital sales accounted for only 12% of total revenue prior to the company making the transition to the e-book/pod model. Prebich conceded that Dorchester will have lower revenues, but he expects margins to improve. He said the company is working out a new royalty rate with authors that he expects to announce next week. Editors are talking to authors now about the changes. “We hope they’ll stay,” Prebich said. Dorchester’s e-books are available at most major vendors and compatible with most platforms at an average price of $6.99. Trade paperbacks will be priced in the $12 to $15 range
