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The Economics: A Back of the Envelope Calculation
The proliferation of new publishers and titles do not necessarily signal that the lesbian publishing industry is a highly profitable venture. Connor states “I don't think any gay authors are currently sitting back in their lounge chair by the pool ordering their servants around. Everyone I know writes on the side and has a job that pays the bills.” The publishing industry as a whole is a hit-driven business that relies on volume for profits. A quick back-of-the-envelope calculation proves that there are easier ways to earn a buck than publishing lesbian fiction:

Assume a hypothetical title is going to be released with a $15 cover price and a print run of 8,000 books--average for an established author and known lesbian press. The hard production costs (printing, graphics, and editing) come out to $10,000. An additional $2,500 is spent on marketing materials bringing the total cost of the book to $12,500.

The average discount to distributors and retailers is 65% with 15% going to the distributor and 50% going to the wholesaler/retailer. That means that the revenues the publisher receives for the sale of the book is 65% less than the cover price. The total gross to the publisher for this title is $42,000 less the production costs nets $29,500. Author royalties come out to $9,600 (assuming 8% of cover price--this number varies greatly from one company to another but 8% is average). The final publisher take is $19,900.

An important number to note here is that the ratio of net profit for the publisher relative to royalties for the author is roughly 2:1. Industry standard usually falls between 1.5:1 and 3:1. And these numbers do not even take into account company overhead or book returns, which can reach as high as 20%.

A decent sized lesbian press might release two dozen books a year, which brings total revenues to $477,600 before taxes, overhead, and other costs of business--a seemingly break-even proposition at best.

Diversification and Going Forward
The future for both publishers and booksellers appears to hold diversification as key. On the retail side, independent bookstores are relying more and more on sideline sales to supplement the book business. 25% of Charis' sales now come from sidelines such as videos, CDs, and small gifts. Giovanni's does brisk business in bumper stickers, jewelry, and rainbow flags especially around Pride.

Cleis Press is publishing more heterosexual literature and according to the article “Making It, Gay & Lesbian” in the April 25, 2005 issue of Publishers Weekly, has seen its profits grow to 19% as a result. Bella Books now offers Bella Distribution to other publishers, effectively monetizing their existing infrastructure. Bold Strokes Books is investigating the possibility of adding graphic novels to its lineup.

Increasing unit sales is clearly a major goal for all of these lesbian presses. If they can increase demand and sales for individual titles, they can increase press run sizes and thus approach the more profitable economies of scale demonstrated by mainstream releases. The biggest challenge is awareness. Many media outlets and publications have scaled back on book reviews and most lesbian presses do not have the budget for PR or ad campaigns.

While lesbian fiction content and selection has been as strong as ever in recent years, only time and the market will tell if this proliferation can be sustained.

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