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    © 2013, Joseph B. Wikert
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« My iPad Replacement | Main | B&N's Nook Platform is Rough Around the Edges »

March 12, 2012

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Comments

Sherri

When Amazon was selling ebooks below cost, it was selling the Kindle for $399. That's not below cost.

Joe Wikert

Sherri, my point is that Amazon started the $9.99 model when the Kindle launched. I don't know what the manufacturing cost of the original Kindle was but it's reasonable to assume they made some money on sales of that device. That was more than 4 years ago, the Fire is the popular device these days and, as I mentioned in the post, iSuppli believes Amazon is selling them at a loss. Meanwhile, Amazon continues selling plenty of ebooks at $9.99, also still at a loss.

Alan J. Zell

It seems to me that as long as an author and the publisher is fairly compensatged -- the author for their talent/skills, the publisher for their costs of producing the book in its many formats, it matters not what the resellerwants to charge.

Resellers have their expenses and it is up to them what they want to sell the book for.

Alan

Neil Gorman

The cost of producing a eBook should be less than the cost of producing a paper book. I say this because an eBook takes out the cost of...

- Paper
- Printing
- Transporting the physical object
- and the cost of storing the book goes way down. Meaning, it costs far less to keep a digital copy on a server than it does to keep many physical copies in a warehouse.

Because the cost of an eBook is less to publishers the cost of the book should be less to consumers.

Joe Wikert

Neil, I never said anything about the price of print vs. ebooks. This post is all about how much a retailer should be able to discount off the publisher's list price. So I'm comparing ebook prices to ebook prices, not ebook to print prices. And while you're absolutely right that the total cost of an ebook is less than a print book, it's probably a smaller difference than you think. The manufacturing cost of a typical print book is a dollar or two, and that's the most significant cost in the items you list above. We're not talking about discounting by a couple of dollars. The discounts for ebooks are generally much deeper than that, often 2, 3 or more times that amount.

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