Thread: Price Wars/ E-Book Cost
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Old 10-26-2009, 03:20 PM   #9
Kali Yuga
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The $1.50 price is wrong, at least for new titles.

I may be wrong but my understanding is it's not based on a percentage. The publisher sets a wholesale price, and the retailer goes from there. For brand-new books (what would normally be a hardcover) the wholesale price is $10 or more; so ebook retailers occasionally lose money on the $9.99 ebook.

IIRC someone at Amazon (possibly Bezos) stated that some ebooks are loss leaders, but so are some of the big hardcovers, especially with the current price war.
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