Thread: Reasons I'm not getting a Kindle but the Sony 505 instead.
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Old 12-03-2007, 06:58 PM   #72
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Quote:
Originally Posted by edsohsmith View Post
I am not sure that Sony was relying on Connect "profit margins". I think the price may have gone down partly because Amazon leveraged many of the publishers to drop the price on their eBooks, to all eBook sellers. I hope they keep up the good work.
actually there was an interview question to that effect. Apparently they (amazon) have the same model for ebooks as they do their store at large. They take a loss on popular ebooks and make it back on specialty ones. So you can find best sellers that are 9.99, significantly lower than what the publisher charges amazon. This is to "draw" you into their store. It works pretty well but you have to have a big selection to get the money back on books the publisher agrees to big discounts on.

Sony did not (does not) have the negotiation leverage nor the size (or gumption?) to make that happen. Amazon is vastly bigger than Sony's book entry. The scales are unimaginably in amazon's favor.

So the prices you see are amazon making it happen, not really a lowering of prices by the publisher.

-d
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