Yes, it is an agency model, as stated by Mark Coker of Smashwords, so no the title of the thread is not incorrect. It is in the link from his log that I posted:
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I knew it would be a bigger challenge to move our retailers to the agency model, or something agency-like. Needless to say, none of our retailers were too keen to do this when I first started requesting this in June. I can't blame them for their hesitation, because the agency model creates all kinds of complexity and expense for the retailer to administer. I imagine many were still smarting from the insult of being forced to do it in the first place by the A5.
Today, however, I'm pleased to report that Kobo, Barnes & Noble and Sony have transitioned all Smashwords books to the new model.
...Like with our other agency retailers Apple and Diesel
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No there will not be coupons. The statement made about coupons meant that the authors or publishers
could offer coupons if they wanted to; doesn't mean that they will and it would be an individual thing. But if say Kobo offers a 20% off coupon you will now, in addition to not being able to apply that coupon to the big 5 agency books, also not be able to apply it to any Smashword books.
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It's right that authors should be allowed to set the wholesale price of their books - ie, the amount that the retailer pays them for a sale.
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Exactly.
Granted Smashword prices are generally cheaper, and it's fine to say your books will always be $2.99 and that's a reasonable amount. What you are missing is the psychological effect of a discount or coupon on boosting immediate sales. If I have a coupon or something is on sale I am more likely to grab that book
now that is $2.99 on sale, since that is a limited time offer. If I have a huge TBR read pile I don't really need to buy
now the book that is always $2.99...