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Originally Posted by tompe
Publishers using agency model uses distributors. So publishers do not sell directly to consumers.
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They use agents, not distributors; the agents don't get to set the prices or the terms of sale--they can't distribute to other stores who get to resell the items under their own terms. The publisher sets the end-user's purchase price. The article mentioned other industries using this pricing method; I'd like to know what those are. What other industries involve a manufacturer setting the end-user purchase price? (I'm not saying there aren't any just because I can't think of them off the top of my head.)
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Remember that it is the bestselling hardcover editions that are important and is seems like the publishers reasoning is correct for them.
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Have Baen's hardcover sales dropped in the 10 years they've been offering cheap, DRM-free ebooks?
Do they have any statistics showing that ebook sales reduce hardcover sales? And that higher ebook prices connect to more hardcover sales?