Why are some e-books more expensive then their physical version?

*reg* · 07-18-2010, 03:46 AM

I'm quite new to this whole e-reader/e-book thing. Anyway was just browsing some websites and looking at possible purchases, and along the way I quite often noticed that sometimes the e-books would be a couple of dollars more than the paperback version.

How the jeepers does that work? There is no printing, paper, transport and so on involved with an e-book, so how can it be more expensive.

Can someone please explain what I am missing?

As a result I didn't purchase the e-book or the paperback version.

HarryT · 07-18-2010, 03:47 AM

The price of an eBook is generally set by the publisher. With paper books, generally it's the bookstore who will decide to discount the price.

*reg* · 07-18-2010, 03:57 AM

Quote:

Originally Posted by HarryT

The price of an eBook is generally set by the publisher. With paper books, generally it's the bookstore who will decide to discount the price.

So does that mean that the bookstores/sites have to sell at the prices dictated by the publishers and are not able to discount them like they do with the RRP of paperbacks?

HarryT · 07-18-2010, 03:59 AM

Quote:

Originally Posted by *reg*

So does that mean that the bookstores/sites have to sell at the prices dictated by the publishers and are not able to discount them like they do with the RRP of paperbacks?

Yes. The major publishers have what's called an "agency agreement" with the bookstores, which means that the stores are acting as their agents, rather than as independent retailers. That means that the publishers dictate the prices.

What you will generally find is that, as time passes, the price of a particular book will fall. "Back catalog" books will normally be a lot cheaper than new releases.

*reg* · 07-18-2010, 04:04 AM

Quote:

Originally Posted by HarryT

Yes. The major publishers have what's called an "agency agreement" with the bookstores, which means that the stores are acting as their agents, rather than as independent retailers. That means that the publishers dictate the prices.

What you will generally find is that, as time passes, the price of a particular book will fall. "Back catalog" books will normally be a lot cheaper than new releases.

Thanks for your help in getting me to understand

Jellby · 07-18-2010, 04:44 AM

That's probably not the only reason.

In the EU, paper books are considered "cultural goods" and have a reduced VAT, while ebooks are "digital products" and have a normal VAT. This can be a difference between 4% and 18% VAT, or 0% and 20%, or something similar.

And then there's the fact that ebooks are still considered a "niche" product for "geeks" by publishers and stores, and they'll usually price them as high as they can, independently of the price of the paper counterpart.

amoroso · 07-18-2010, 05:03 AM

Quote:

Originally Posted by Jellby

And then there's the fact that ebooks are still considered a "niche" product for "geeks" by publishers and stores, and they'll usually price them as high as they can, independently of the price of the paper counterpart.

As long as publishers and stores have this mindset, ebooks will remain niche products.

nyrath · 07-18-2010, 08:04 AM

This happened back in January
http://techcrunch.com/2010/01/31/ama...icing-demands/

amoroso · 07-18-2010, 10:08 AM

How long do publishers think it will take customers to realize that ebook prices are too high despite eletronic distribution providing lower costs and higher margins?

stargazertony · 07-18-2010, 10:44 AM

Think the short answer is "greed".

sabredog · 07-18-2010, 10:55 AM

Short sightedness is another

Worldwalker · 07-18-2010, 11:38 AM

Price fixing.

mikij · 07-18-2010, 11:51 AM

In one of his posts, neilmarr explained how it works now and how, according to him, it should work. I agree with him. Check this post.

timezone · 07-18-2010, 12:21 PM

In some ways I think this is a funny argument. Before you jump on me I do agree eBooks should cost less and there is good argument for it. I think it is funny because of the lack of uproar for other products. We argue this point because we can mentally picture the quantity of ink, paper and ultimately the cost that goes into the production of books. We see them removed from the equation for eBooks and ask why don't we realize a cost difference. We never consider the cost of bandwidth and servers. So many Internet providers died during the dot com days because of this very cost. Yet I am diverging from my point. Or maybe not because I believe there are hidden costs we do not realize still exist in making an ebook. For example the payment to the author, lawyers, marketing, etc. There are so many products we buy everyday that have 50 to 100% and more markups. We don't question those costs. Of course we are not always aware of these markups. Compared to some of these other products I bet an eBook is still a bargin.

Shaggy · 07-18-2010, 01:21 PM

Quote:

Originally Posted by *reg*

Can someone please explain what I am missing?

The Publishers are greedy. It's still a niche market and they're trying to cash in on early adopters who they think will be dumb enough to overpay for what should be a cheaper product.

07-18-2010, 03:46 AM	#1
reg Human Posts: 47 Karma: 1264 Join Date: Jul 2010 Location: Australia Device: Kobo, iPhone	Why are some e-books more expensive than their physical version? I'm quite new to this whole e-reader/e-book thing. Anyway was just browsing some websites and looking at possible purchases, and along the way I quite often noticed that sometimes the e-books would be a couple of dollars more than the paperback version. How the jeepers does that work? There is no printing, paper, transport and so on involved with an e-book, so how can it be more expensive. Can someone please explain what I am missing? As a result I didn't purchase the e-book or the paperback version. Last edited by reg; 07-18-2010 at 03:54 AM.

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07-18-2010, 03:47 AM	#2
HarryT eBook Enthusiast Posts: 85,544 Karma: 93383043 Join Date: Nov 2006 Location: UK Device: Kindle Oasis 2, iPad Pro 10.5", iPhone 6	The price of an eBook is generally set by the publisher. With paper books, generally it's the bookstore who will decide to discount the price.

07-18-2010, 04:44 AM	#6
Jellby frumious Bandersnatch Posts: 7,516 Karma: 18512745 Join Date: Jan 2008 Location: Spaniard in Sweden Device: Cybook Orizon, Kobo Aura	That's probably not the only reason. In the EU, paper books are considered "cultural goods" and have a reduced VAT, while ebooks are "digital products" and have a normal VAT. This can be a difference between 4% and 18% VAT, or 0% and 20%, or something similar. And then there's the fact that ebooks are still considered a "niche" product for "geeks" by publishers and stores, and they'll usually price them as high as they can, independently of the price of the paper counterpart.

07-18-2010, 08:04 AM	#8
nyrath Addict Posts: 281 Karma: 52007 Join Date: Jun 2010 Device: nook	This happened back in January http://techcrunch.com/2010/01/31/ama...icing-demands/

07-18-2010, 10:08 AM	#9
amoroso Groupie Posts: 185 Karma: 1004070 Join Date: Jul 2010 Location: Italy Device: Kindle for Android, Google Play Books	How long do publishers think it will take customers to realize that ebook prices are too high despite eletronic distribution providing lower costs and higher margins?

07-18-2010, 10:44 AM	#10
stargazertony Connoisseur Posts: 92 Karma: 906 Join Date: Apr 2010 Location: SouthWest Pensylvania Device: Kindle 3, iPod Touch, Pre-electronic devices	Think the short answer is "greed".

07-18-2010, 10:55 AM	#11
sabredog Geographically Restricted Posts: 2,629 Karma: 14933353 Join Date: Dec 2008 Location: Perth, Australia Device: Sony PRS-T3, Kindle Voyage, iPad Air2, Nexus7v2	Short sightedness is another

07-18-2010, 11:38 AM	#12
Worldwalker Curmudgeon Posts: 3,085 Karma: 722357 Join Date: Feb 2010 Device: PRS-505	Price fixing.

07-18-2010, 11:51 AM	#13
mikij Connoisseur Posts: 98 Karma: 161 Join Date: May 2010 Location: Quebec, Canada Device: PRS-600	In one of his posts, neilmarr explained how it works now and how, according to him, it should work. I agree with him. Check this post.

07-18-2010, 12:21 PM	#14
timezone Addict Posts: 244 Karma: 1232 Join Date: Jul 2008 Location: Boston, MA Device: Windows Phone7, Kindle Fire	In some ways I think this is a funny argument. Before you jump on me I do agree eBooks should cost less and there is good argument for it. I think it is funny because of the lack of uproar for other products. We argue this point because we can mentally picture the quantity of ink, paper and ultimately the cost that goes into the production of books. We see them removed from the equation for eBooks and ask why don't we realize a cost difference. We never consider the cost of bandwidth and servers. So many Internet providers died during the dot com days because of this very cost. Yet I am diverging from my point. Or maybe not because I believe there are hidden costs we do not realize still exist in making an ebook. For example the payment to the author, lawyers, marketing, etc. There are so many products we buy everyday that have 50 to 100% and more markups. We don't question those costs. Of course we are not always aware of these markups. Compared to some of these other products I bet an eBook is still a bargin.

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