the royalty jar
Over the course of these royalty season posts, I have spoken a lot about the reserve against returns, and this entire post will deal with this. The idea of the reserve is rooted in reality. The books the publisher sends out can be returned for full credit by booksellers. The publisher has to ave some protection against paying royalties on copies that might be returned. But the reality of the reserve is that it is the publisher's cookie jar, a source of abuse, and like many things in the publishing industry a relic of a past age that doesn't want to come kicking and screaming into modernity. Once upon a time, the fate of a book really was a mystery. It isn't any more. With Bookscan and other direct ties between major retail accounts and major publishers, the big publishers know the fate of a book. Maybe not by June 30 for a book that came out in May, and I can understand a bit if the reserve against returns on that first royalty report is high. Yet, I will o...