Reserve For Returns

[jpskewedthrone]

I must apologize to everyone for my previous freak-out episode journal entry about my first sales report. Oh, the freak-out was totally for real and lasted pretty much the entire afternoon, from mail delivery to my game meeting with pbray and jennifer_dunne. But then, they explained to me what the "reserve for returns" lines meant.

See, I took them to mean actual returns. As in, books not sold and thus returned so that the author can be buried in a crypt made of his or her own book.

However, it has been explained that the books sold on this report are essentially books that DAW can guarantee without a doubt have been sold. The reserve for returns are those books that are actually still out there either:

a) On a shelf in a bookstore;
b) In a warehouse (but not DAWs warehouse);
c) Actually in someone's house, preferrably being loved, because someone actually bought it.

So, more books have probably sold than it would seem on the list. I realize (now) that that's what most of you are saying. But its hard to get through the panic when there's a line that says: US Regular Sales, followed by a heart-stoppingly small number. And all other lines contain the word "return".

But I'm happy to report that the reserve for returns line has a significantly HIGH number. So there's hope. I do not need to be shot. Yet.

But I do apologize for the public freak-out. Thanks for the instant hugs and well-wishing, as well as the attempts to explain. I need to remember that I'm still new at this and should not instantly panic when something new and foreign appears.

Comments

[krteilman.livejournal.com]

Poor baby, I'm glad you are feeling a bit better. I promise once I have money I shall tromp right to the B&N and buy your book!!!!

[kristine-smith.livejournal.com]

No need to apologize.

After about a year, your agent can ask that most of that reserve money be freed up, which bumps up the royalty check nicely. The rationale is that after a year, and possibly an additional printing or two, any books that are ordered afterward are likely ordered for good reasons (frex, the bookstore actually expects to sell them) and are unlikely to be returned in the en masse kinda way that justifies a substantial reserve.

[jpsorrow.livejournal.com]

Good to know. I'm not sure why this isn't explained to newbie authors before the first statement arrives. It would certainly save heartache. I really don't need any more gray hairs.

[kristine-smith.livejournal.com]

The things that aren't explained are Legion. It seems as though you're just expected to pick it up as you go. I recall an online discussion years ago during which I mentioned something about the fact that my books had been modeled at B&N, and that I was very happy about it. A bestselling author asked me to define modeling. I was floored. I felt that after a couple of years and a couple of books, I didn't know that much, but there were experienced folk who knew less than I did. Looking back, though, I am sure that there were aspects of the business that this writer knew much better than I did. It's like profession by committee. We each have a very firm grasp on one or two aspects. Put it all together, and you'd have one knowledgeable writer.

(for those who don't know--"modeling," as I understand it, is when a book is placed on automatic reorder in such a way that there is always a total set number of copies in a system. A one-book model means that there is always one copy of a title on the shelf or on order--as soon as that book is sold, an automatic reorder is placed. For a two-book model, there is always some combo of two books in the system--two on the shelf, two on order, one and one, etc.. That's why modeling is so desirable--you don't have to depend on a clerk remembering to place the order, or on a special request. The book will always be there. Not every store in a chain has to pick up the model, but many do, and it's a very nice thing.)

[everyonesakitty.livejournal.com]

Oh, good! I just saw your previous post and was going to tell you I didn't believe it; I've heard so many people talk about how cool, different and memorable your book is, I just couldn't believe it wouldn't sell well. Glad the other number is high, and here's hoping you get more royalty money soon!

[jpsorrow.livejournal.com]

I couldn't believe it at first either, but then the paper was just sitting there, so real. . . .

But now I realize that . . . I don't have a clue how well the book sold. Even after the statement.

Oh well. Numerous people (including you) have made me realize the book must not have tanked because they released book 2 early, in a good month, and they released book 1 in paperback with an embossed title and author name. So someone at DAW must be happy with the sales.

I can live with that without knowing the REAL numbers. *grin*

[kristine-smith.livejournal.com]

No need to apologize.

Especially given that I posted my own revision letter freak out-slash-crying jag in my beer. I'm slowly surfacing.

It can be a roller coaster, no matter how long you've been at it.

[pbray.livejournal.com]

Don't apologize. You're perfectly entitled to a meltdown. Hell I had a public meltdown when the CE kept changing towards to toward and dove to dived in one of my manuscripts.

It does make me think that SFWA ought to put together a session for Worldcons on "You've sold your first book, here's what you need to know" for new authors, that would include the intricacies of navigating your first royalty statement, among other lurking horrors.

As well as supplying an author emergency kit containing a six pack of hard lemonade, a pound of chocolate, and a stress doll with detachable limbs.

[melissajm.livejournal.com]

Both the panel and the kit are good ideas. Needs a plain lemonade option, though.

FWIW, Josh, when I got my first royalty statement for Between Worlds I went around telling my family and friends "My book made $x!"

Then I realized I'd read it wrong. It made NO profit.

Mm, crow. Yummy. ;)

Here's hoping for more sales next time!

[jpsorrow.livejournal.com]

That's just the thing. I probably have more sales, but even with the next statement I won't know all of the sales because of the reserve for returns line.

[melissajm.livejournal.com]

Well, :fingers crossed: I hope it's a lot!

[msagara.livejournal.com]

The reserve period is usually 2 years. Some companies will debit the reserve when they get returns -- but some hold that reserve for the full 2 years.

I missed you at WFC =/. We walked all over the convention on Saturday night trying to find you, but no luck >.>

[jpsorrow.livejournal.com]

Alis said you guys looked for me. I spent most of that night at the party in 449. I hear you guys never made it up to the 4th floor. Oh well. I'm sure we'll be attending the same cons at some other point in the future.

[kristine-smith.livejournal.com]

It was several years ago. I still want to say that I was able to get at least some of the reserve money for the first book inside two years. But my agent at the time felt that the reserve amount was excessive, and I think he pushed rather hard.

Some of this can be agent-dependent, which adds another variable to the mix.

[j-cheney.livejournal.com]

I want the stress doll with detachable limbs!

(Glad it wasn't as bad as it sounded)

[jpsorrow.livejournal.com]

I'm glad as well. I don't need the extra gray hair.

[j-cheney.livejournal.com]

Yeah, well, none of us do...