Quote:
Originally Posted by murraypaul
From Amazon
Hey, look.
Low prices == more sales, high prices == less sales. |
Yes, but it's a little more complex than that.
I can certainly see Amazon trumpeting this. They get to have their cake and eat it too. When the Agency Pricing model forced them to charge a higher price, they point at the publishers and say "They made us do it!" Now they're saying "Look how sales of books at those prices have dropped since they did!"
And yes, they have. But for the publishers, it's about revenue and profit. So the question is whether the reduced sales for Agency Model priced books is ultimately returning
less revenue and profit than the books brought
before that was imposed. If they are making more money, overall, at the lower sales but higher prices per sale, guess which way they'll jump?
I don't know whether they are making less under the new pricing scheme or not, but given why I think they went to the new scheme to begin with, I don't see them shifting away from it any time soon.
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Dennis