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The distributor discount is the percentage of the list price that goes to the wholesaler or distributor for listing and selling your book. These companies do not sell the book to consumers. They usually keep 15% to 20% of the discount and pass on the rest to the bookseller (who does sell to consumers). That’s why you need to make sure the distributor discount is large enough to ensure that both the distributor and the bookseller can make some money.
The default distributor discount throughout the industry is 55% and, unfortunately, there is not much that can be done about that. We can set up a short discount on Ingram and lower the price, but Ingram will respond by raising their share of the discount, shorting booksellers even further. In the long run, it's usually best to give the distributors what they want.
If you have any questions, please give us a call at (866) 229-9244.