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Originally Posted by DMcCunney
The total that it costs the publisher to actually prepare the book for publication, in any format.
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Which is not the cost of the book, from the point of view of the consumer.
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Reserve against returns should apply only to print editions, since it's meaningless for ebooks.
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But if half the books are returned, then the actual print/distribution cost per unit
sold are twice what is being discussed.
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The suggested retail price is a rather different matter, as it does include things like retailer markup and distribution costs in the case of physical books.
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And those costs are the ones which are most significantly reduced by moving to eBooks, so it seems rather disingenuous to exclude them.
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The costs the publisher incurs to make the book will govern the wholesale price charged to the retailer, and will be set at a level that covers the publisher's costs and makes a sufficient amount of profit.
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But we don't have wholesale prices and retailers any more for eBooks, do we? We have agents, and the publishers are setting the retail price, not the wholesale one.