Originally Posted by Graham
Thanks for that, HoraceWimp. But surely Amazon are under no obligation to discount at all? The same author complaining about the rise in the price (still less than the publisher recommended) surely benefited from the earlier increased sales that he believes were a direct result of Amazon taking a hit and discounting harder.
I think you miss the point Graham. If Amazon raises the price of a book up fewer copies are sold of that book which means that the author gets less $$ back at the end of a given month. So if a book costs $5.00 and the author gets 30% of that then one copy brings him/her $1.50 when someone buys it. And if 10 people buy that book that means he/she gets $15.00 but if the price of the book goes up to $10.00 then 30% is $3.00 which would mean that if 10 people bought it he'd get $30.00 but if only 5 people buy that book (at the newer higher price) where before it would have been 10 who bought it then he/she gets $15.00 or the same amount that he got for selling 10 of the books at the $5.00 price. In short unless more and more people buy the book he doesn't really stand to earn more than he would if the price hadn't been raised. In fact he'd be lucky to break even and make the same amount back that he would have made if the price hadn't been raised.