I didn't realize until this morning that I have the ability to earn as much as BP or Exon per unit. My unit is a book; their unit is a barrel of oil. Roger Marks, an oil consultant wrote in today's (4.26.15) Alaska Dispatch News, that the oil companies are selling their oil for an average of $55 a barrel.
After they pay transportation costs ($9); property tax ($2); royalties ($5.75) taxes ($1.61), state and federal taxes ($.34 and $1.16). That leaves the producers with $2.14 per barrel net income.
That's about what I make from the sale of a book at retail. The book sells for $19.95. The book store needs a profit so my distributors sell to them at 40% off retail ($7.98). The distributor needs to be paid so they get 30% of the remaining ($3.59) and that leaves $8.38. The book cost $4.56 per copy to print and ship. So the author nets $3.82 if you don't include costs of editing, cover and interior design of the book.
I haven't decided to let BP or Exon know my profit figures yet or even thought about selling the whole lot on the open market. But let me tell you--the thrill of making more on one book than they make on a barrel of oil is stimulating.
What are your thoughts about writing for profit?
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