An unusual question but I'm curious about how stores in Australia work with scrapping of damaged or slow selling stock, Do they get insurance for stock not sold, scrapped or damaged?
I have a friend who works for a warehouse that distributes/sells just about everything and things get damaged or thrown out if not selling well. Staff often get to take extra stuff, depending on what it is and then is given to family members or friends.
What im wondering about is things where royalties are paid, would they be written off for insurance or simply replaced by the manufacturer if damaged in transit for example? He gets lots of software, games, music, DVDs, books etc aswell as eletronic items with damaged packaging that have all warranty information still. Im assuming that it could be deemed as a type of fraud to put in a warranty claim for these items if a receipt wasnt needed which is the main reason for my post, I wouldnt want to attempt it. Or would stock from a warehouse/distributor be written off totally by insurance hence already paid for?
When authors or artists publish a title, would they be paid royalties even for items damaged and scrapped or is it simply written off like it never existed and replaced?
In certain junk stores ive seen loads of one title of a less popular book that they just cant sell, im wondering if those 1000s of copies of that book would be included as a sale for that particular author? Do they get royalties for every published book regardless?
Im just curious how this works.
Typically the publisher sells copyrighted material to the retailer at X% discount; in the case of books, it might be 50%. Authors get their royalties from the discounted price. If the retailer can't sell the goods, they have to return it to the publisher. If this is the case, the author's royalties get netted off the returns.
There are probably cost benefit considerations of shipping things back to the publisher such as books.