Apple Guilty of Price Fixing Ebooks

On 7/10/2013, Apple was found guilty of being the ring leader of a price fixing scandal on ebooks. They colluded with these major publishing groups, Hachette, Macmillan, Penguin, HarperCollins, and Simon & Schuster, which all quickly gave in to the accusation and agreed to settlements – leaving only Apple to be the only company that went to trial. Apple made sure that the main publishers all agreed to sell their ebook at the $14.99 price, which would make Amazon eventually raise their ebooks from the $9.99 price point up to $14.99 too.

You can read the full article here.

Related to this price fixing scandal were the previous concerns that many consumers had of why some ebooks are priced higher than hardcovers. Understanding the context of how the prices of books are decided will paint the picture for why Steve Jobs’ “Agency Model” was a scheme to fix the prices. While you can read the full article here, I will provide a short synopsis to explain what is going on behind the scenes with book prices.

If a printed book is listed for $25, half of that goes back to the publisher (which then gets divided among author, agent, and publisher), and the other half goes toward the retail chain. This allows a profit buffer for the retailer to discount the book and still make money (because the publisher will still make half of the original list price no matter what the book gets discounted to). Then Amazon came onto the market and started selling ebooks for $9.99 on the kindle… they were actually selling the books at a loss. The consequences of this is that they were changing consumer’s expectations of the value of what a book should be.

So when Apple launched the iPad, they changed the way ebooks were sold. Publishers got to set the price, they get 70% and Apple gets 30%. They raised the price of ebooks to $14.99 because at that price, even with keeping 70%, publishers were still making less per book sale than selling a hardcover.

If Amazon were to adopt this model, dubbed the Agency model, then they would no longer be losing money per book sold. In addition, since Publishers choose the price in this scenario, the prices would all be set at $14.99, and that’s how Apple led a price fixing scandal.

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Shifting Focus and Changing Plans

For most authors in search of traditional publishing, it is only after diving into the deep end head first that you realize that you can barely tred water among all the other authors in the pool. It is only then that you might decide to take a step back and survey the landscape so that you can find a more likely path. In my case, that’s exactly what happened, and now I’m changing course toward calmer waters. It’s not the shortest journey, but it’s become more apparent to me now more than ever that an author must have patience and, in my opinion, layout a series of stepping-stone goals.

It has been my goal to get my novel published. However, the path that I chose to get there was to submit to literary agents (the gatekeepers to the publishing industry). My reasoning was that I knew they could educate me on the process, negotiate for a fair deal (so I would know whether I am being taken advantage of), and sell my manuscript better than I could. However, submitting to literary agents as a new author is like trying to take a shortcut in the publishing world. Literary agents generally look to get their clients that highly desired hardcover deal which is not often achieved by first time authors.

So it is time that I “start small” and choose the other path. I’m going to submit directly to some of the smaller, more focused publishing houses that usually deal with paperback and ebook deals. This was somewhat difficult for me to wrap my mind around as any self published author can achieve those same things via Amazon’s Create Space or other similar venues. However, a publishing house does more than just publish. It’s the editing, the marketing, the recognition amongst the consumers of a quality product, the brick-and-mortor store distribution, and the commitment of a team that is involved in your success as much as you are.

I feel that now, with my short story published, my query letter will exhibit more confidence, and with my progress into book two, it’ll demonstrate my dedication. If successful, I’ll have to negotiate the terms of my own deal and manage my own career, but it’s all about the journey, and it will all be worth it in the end.

How to Write a Synopsis For Your Novel

Synopsis of Hamlet. This mind map gives a visual display of why it is so difficult to capture everything from a novel within the short length of a synopsis.

In my journey toward seeking representation, I have queried over 50 literary agents, all of which did not require a synopsis as part of the submission. I kept a reserve of ~20 other literary agents that I would submit to if my first round of submissions didn’t go so well. These 20 all require synopsis’s.  Unfortunately for authors, literary agents do not have standardized requests. Some ask for 1 page synopsis’s and others want 2 pages (a rare few even ask for a 3-5 page synopsis), which of course must be submitted along with your Query Letter and/or a sample of your work. While I do have one very promising agency reviewing my manuscript (fingers crossed!), I am preparing for round 2 (just in case) and just completed my synopsis.

SYNOPSIS TIPS & FORMAT:

At the top of the page (left or center) provide this info: Synopsis of “Title”. Genre: ____ Word Count: _____ By: “Your Name” (however, you can put your pen name if you wish).

Since most agents/publishers ask for either a 1 page or a “brief” synopsis, I think it’s best that you craft it to be within 1 page, single spaced. A synopsis is a narrative of your story, written with the same style and sense of excitement and wonder of your novel. Do not simply say, “Here is the main character, and this is what happens to him/her,” you must make the synopsis drool-worthy.

Synopses are always, ALWAYS, written in 3rd person and in the present tense. No exceptions! The synopsis must introduce your main characters. When you do so, you must make their full name in ALL CAPS, but only for the first time you mention their name. This makes it easy for a reader to locate the introduction of a character.

You do not have to detail all your sub-plots or all your characters, but the main story line must come across in your narrative. So it is best to ensure that you have captured all the major scenes and major plot elements and conflicts, and most importantly: The ending. Yes, you must give away your ending. How you conclude your story is especially important to agents and publishers.

PRO TIP #1:

Have a reader that is unfamiliar with your story read your synopsis and give you feedback. It can be difficult for you to be objective about your synopsis since you understand the meaning behind every sentence.

PRO TIP #2:

Think outside the box. You don’t have to write your synopsis in the same order of events as your novel. You can explain things out of order, which can help when you are trying to condense things down to one page.

PRO TIP #3:

Before writing your synopsis, bulletize the main points that you want to write about. This will help keep your novel at a high level and will help prevent you from diving into the details.

PRO TIP #4:

Don’t go down a rabbit hole. Beware of explaining one event/scene that forces you to explain another. Rabbit holes add additional details to your synopsis that only raise more questions than answers.

PRO TIP #5:

Less is more.

PERSONAL OPINION:

Why did I delay writing a synopsis, you ask? Because, summarizing your entire novel into one page is quite possibly the Achilles Heel of every author. Reducing my 100,000 word novel into an ~900 word page is difficult, to say the least. For most novels, there are so many complex sub-plots that hold a lot of weight to the overall story (as shown in the picture above), and not being able to fit them into your synopsis can be torturous.

When I joined NaNoWriMo this year, in order to fill out my profile, it made me write a synopsis of my novel before I even began writing it. I must say that writing the synopsis beforehand helped me identify character motivations that I hadn’t even considered in my outline. It was profound, and it helped me expand on my planning. However, if you were to write a synopsis before hand (which is similar to the Snowflake method of outlining, which I discuss here), you can bet, with a certainty, that you will need to revise it after you finish your novel.

STEPHEN KING’S APPROACH:

In his novel, On Writing: A Memoir of the Craft, Stephen King doesn’t touch on writing a synopsis, but what he does talk about is plot – which is what a synopsis is supposed to capture. Steven King’s novels are not born from the conception of a plot, but are based on a single situation instead (I wrote more about it here in my discussion of the 7 basic plots). He is able to reduce his entire novels down to one sentence. It struck me that when writing a novel using this approach, it would probably be a lot more friendly when it’s time to summarize your novel into a synopsis. And even more helpful for the purposes of writing a Query Letter (explained here with additional detail here).