What to do with Excess Book Inventory?

With a second edition of Practical .NET 2 and C# 2 comming up in the next few months I have been pondering what I will do with the remaining inventory of the first edition.

With the current inventory, and the current rate of sale, I expect to have an inventory of about 500 copies left by the time the new edition hits the streets. I obviously do not want to plainly dispose of the inventory as it does have some value. So I've been researching what are my possible options are.

Sell to a Remainder Company:I could likely find a USA based company which will take the excess inventory at a high discount (around 80% off retail). If the book was being discontinued, this might be a viable option but since there is a second edition comming out, it would make little sense to give myself competition with a low-cost version going around.

What about International Markets:There are translated/adapted editions of the book availible in India and China but the other international markets are not covered and we have no official distribution arrangements for these markets.I've done some searching but had little to no luck getting information on such companies which may be interested in this type of book. Any reader know of such Internation Remainder companies?

Donating Books:There seems to be a large amount of companies which donate books to developing countries. Some of them such as http://www.sabre.org/donations/index.php, http://www.bridge.org/books.html, http://www.asiafoundation.org/Books/donating.html. Which are non-profit organization which would likely take our inventory. There would of course be no direct income from doing so. But it is good PR, and definetly beats sending a truckload of books to the incinerator! Indirectly, there is the benefit of a tax break. Being a book publisher essentially makes me a manufacturer and comes with an interesting tax break from the IRS...

IRS special tax incentive rule known as section 170(e)(3) allows manufacturers and distributors to make donations of equipment and/or inventory to nonprofit tax-exempt 501(c)(3) organizations at a considerable tax advantage. Gifts can usually be deducted at cost plus one-half the difference between the cost (basis) and the fair market value (FMV), not to exceed twice the basis of the property. (The property must be new or reconditioned to new.) Deductions are limited to 10% of the company’s taxable income each year; excess donations may be carried forward.

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