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If an author writes a book in the woods that never gets published, does anyone hear it scream?
Maybe that depends on what the writer wants. I wrote and wrote and wrote for many years without ever wanting anybody else to see one word of it. So, of course my writing existed.
But if I'd wanted people to read it, then I guess it wouldn't have existed.

As far as writing for yourself goes...of course, if the writer isn't looking to get published, that's different. I'm really only addressing writers who wrote a book in the hopes of publishing it. And i was making an obscure little Thoreau reference as well--Thoreau actually self-published one of his books! Imagine if that book stayed in the woods and was never read by anyone else. What a tragedy that would have been.
Seriously, i think there probably are quite a few small presses that don't make any profit at all. (Errh, majority?). But even so, that doesn't make it any easier for me to land at one of them since I'm still competing with thousands of other writers for that opportunity. And also, small presses tend to be more narrow in their interests, so I have a have quite a short list of small presses that might even be interested. Most of them, unlike your family's company, want to make back enough money to pay their employees and/or themselves! So even though some of them may pick less commercial books, they probably still hope for decent sales. After all, if you believe in the book, wouldn't you want it to be widely read? Keep hope alive. Keep hope alive.

Yes, I guess that's true. It really is difficult, isn't it? The fact is that a book may be important and yet nobody is ever going to read it.
I wonder if my best book isn't the one that I imagine scarcely anybody has read. It's on an obscure topic (a nineteenth century writer) and the mere fact that it might be a good book and has useful things to say doesn't mean anybody is going to read it!
When I'm writing I only think about pleasing myself, rather than a hypothetical audience. I've always thought that was really important as you may be your only reader. On the other hand, perhaps that does mean you are deliberately discouraging a wider audience?
I don't know the answer to that. A couple of my books have sold quite well and a couple haven't. On balance I'd say it was the subject matter that was the only relevant consideration to sales.
One way or another I think it is easy for the author to live with that. He wrote, he should be removed now from what he has done. But the small publisher, what a difficult, heart-breaking time they can have. In a way although it sounds completely insane to have run a publishing business that isn't going to make ends meet, at least because this arm of the business was financed by the sensible side, it meant that we didn't care so much. Survival did not depend on it, only ego.

I never thought of an audience, myself, i created something purely that i enjoyed and would enjoy reading. i had to read the damn thing hundreds of times, and if i didn't like it then i would have died of boredom and never finished it. if other's like it then all the better, but i didn't write it for them--that would have poisoned the ideas. But now that it's almost done, i will try as best as i can to promote it and get it out into the world. I do hope that people will like it, but i didn't write it with them in mind.
Once the art is done, i will have to treat the process of publishing rather like a business. if i don't, the book will just sit in a drawer for the rest of my life. Artists can't live off their art if no one buys their work.
My family business has two arms. Selling antiquarian/secondhand books and publishing books. The former pays for the latter. I wonder if we are the only publisher who operated on a 'charitable' - ie totally non-commercial basis - publishing because something deserved to be, rather than if it was going to make money....
Not that this was even necessarily appreciated. When I was at uni I became good friends with David, who wrote poetry. He wrote poetry, but he was very male and sexy as. I talked my parents into publishing a little book of his poems.
We had a party-launch and during the course of the evening I realised that some of his friends thought he was being ripped off - why wasn't he getting more money?! When, as I'm sure you realised we'd put a lot of effort into this book and were never even going to break even. Sigh.