What Trade Discount Should I Set for Book Distribution?

When you set up your book for distribution with Bookvault, you’ll choose a trade discount.

The trade discount is the percentage of your book’s recommended retail price (RRP) that a retailer or bookshop can retain when they sell your book. 

How does a trade discount work?

For example, if your book has an RRP of £20 and you set a 30% trade discount, a retailer can retain up to £6 from each sale.

The remaining amount is then used to cover the production cost of the book, with any balance paid to you as publisher compensation.

A simple way to think about it is:

Retail price – retailer discount – production cost = estimated publisher compensation

Do retailers always take the full discount?

No.

The percentage you set is the maximum trade discount available to the retailer.

A retailer may take less than the full amount, but they can take up to the percentage you have selected.

What is the minimum trade discount for The Great British Bookshop?

To list your book for sale on The Great British Bookshop, Bookvault currently requires a minimum trade discount of 20%.

What trade discount do bookshop expect?

There isn’t one discount that works for every retailer.

Bookvault notes that many bookshops and distribution partners may expect trade discounts in the region of 30% to 65%, particularly for wider retail distribution. 

A higher discount can make your book more commercially attractive to retailers, but it also reduces the amount left as publisher compensation.

Does a higher trade discount mean I earn less?

Generally, yes.

The larger the retailer discount, the more of the retail price is allocated to the retailer before printing costs and publisher compensation are calculated.

For example:

Your actual publisher compensation will also depend on the cost of producing the book.

How do I choose the right trade discount?

Think about the balance between:

• how much margin you want to offer retailers
• your book’s retail price
• your printing cost
• the publisher compensation you want to receive
• how widely you want the book to be distributed

Before saving your distribution settings, review the estimated publisher compensation shown in Bookvault.

Can I change my trade discount later?

You can review and update your distribution pricing from your Bookvault account.

If you change the trade discount, your estimated publisher compensation will also change.

Retailers may take time to process updated pricing information after a change is submitted.

Is a trade discount the same as a customer discount?

No.

A trade discount is intended for retailers and bookshops purchasing or selling your book through distribution.

It is different from promotional discounts, coupon codes or sale prices you might offer directly to readers through your own store.