From Publishers Weekly:
Bob Hoyt, an instructor and director of the Health Informatics program at the University of West Florida, knew his students were struggling with the high cost of their textbooks. The nominal price of college textbooks has “risen more than fifteenfold” since 1970 — which is three times the rate of inflation — according to a recent article in the Economist, while the Wall Street Journal notes the cost of new print textbooks has risen, on average, about 6% a year for the last decade. Hoyt was also frustrated that new developments in his field meant information in the books was already obsolete by the time they were published. “There were no textbooks that were up to date or easy to read,” Hoyt says. To solve the problem, he decided to create his own, with associate editor and adjunct instructor at the University of West Florida Ann Yoshihashi, and self-publish it on Lulu.com — and sell it for about a third of the cost of a regular textbook.
Seven years later, Health Informatics: Practical Guide for Healthcare and Information Technology Professionals (about using IT to improve health care) is in its sixth edition and is taught at more than 200 universities in 30 countries. The book has sold about 12,000 copies and has been endorsed by the American Medical Informatics Association. While the sales figures don’t come close to the stratospheric success usually associated with self-publishing success stories, there are signs that self-published textbooks could be the start of a new trend with the potential to upend the $7 billion college-textbook industry.
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Lulu President and CEO Tom Bright says it’s precisely authors like Hoyt and Yoshihashi—authors he calls “content entrepreneurs”—that are leading the next successful wave in self-publishing. Bright notes that content entrepreneurs are primarily business owners or professionals—people for whom writing isn’t their primary career.
Bright says authors of this sort sell 20 times as many books on Lulu as fiction writers do. “We’ve found that top nonfiction and education books generate 24% more net sales per title than top books in other genres,” he adds.
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But Yoshihashi had done her research and determined that self-publishing held a number of advantages for them over traditional publishing. These advantages included the fact that they were able to keep a larger share of the profits, the ability to control the price of the book, the quick turnaround time from submission to publication, and the ease with which they could update the book and republish it. “We also can say when we would like older editions to be no longer printed. You don’t have this type of control with traditional publishers,” he notes.
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Hoyt feels that the rising cost of college textbooks has helped their affordably priced volume become so successful. With the Kindle edition priced at $32.95 and the print edition at $69.95, the book is considerably less expensive in both formats than most textbooks available for purchase. Hoyt says his students appreciate that he took pricing into consideration when self-publishing: “They can buy a chapter at a time so they don’t have to buy the entire textbook if they don’t need it. This, he notes, “is very important given the financial burden to students and burgeoning textbook prices.” And while renting textbooks has become a popular option for students who can’t commit to purchasing the book, Hoyt notes that buying their textbook in e-book format is actually cheaper than renting it.
But, even with this competitive pricing, the profits add up quickly—Lulu authors keep 80% of the income from print sales and 90% of digital sales. With the proceeds generated from the sale of the volume, the authors have donated more than $100,000 to the University of West Florida and established grants of more than $25,000 to support health informatics educational programs. Self-publishing, Hoyt says, let them control the price of the book to get ahead of the competition while keeping costs low for their students.
Link to the rest at Publishers Weekly