[DMcCunney]

Originally Posted by Barcey

The market research firms don't just ask the customers what the price should be. There is a science to it and they're very good at it.

I worked for market research firms for over ten years. I think I know something about it. I've seen it done well, and badly.

The fact that the answer was provided through market research doesn't mean it's right.

No it's not easy but that's how business works. When Ford created their first automobile they built it to a price point that a teacher could afford. They didn't just build it and say too bad that's what it costs.

Ford's innovations were in what we would call flexible mass production, and their manufacturing improvements permitted the price point they hit.

Often, "Too bad, that's what it costs" is the answer, like it or not, because that is what it costs.

Change the term of sale so that the consumer maintains the right to read the book for the their own personal use for the remainder of their life. They can't resell it, but they own it.

That's how I see my ebooks now. Of course, I don't get books encumbered by DRM, or purchase from vendors who might suddenly make them unavailable.

Add a satisfaction guarantee. If you don't like it we'll refund your money.

Such guarantees are normally offered by the seller, which in this case is the retailer. If the publisher is selling direct, they might offer such a guarantee. If sales are through retailers, it gets harder.

Improve the quality.

In what sense? Improving the formatting for the user's particular device?

Anyone can create copies, so you can't corner the market or hold a monopoly. You have to be much more careful about customer satisfaction. With a physical product the seller is negotiating from a stronger position.

Agreed, but it still doesn't change the rules I was referring to. Products have costs, and profit they have to make to remain in business, whether the product is physical or virtual. Customer satisfaction is critical either way, but I'm not sure I see it as more critical for a virtual product.

I believe the disagreement comes from much more then this. Electronically distributing a 1MB file is much cheaper then selling through brick and mortar stores so 50% of the list price disappears in most consumers view. The print/bind/warehouse/distribution/return costs come out of the wholesale price. The publishers are trying to take a couple bucks of the list price and consumers aren't buying that story.

All producer costs come out of the wholesale price.

The fact that the consumer thinks that 50% of the list price disappears because it's an electronic file doesn't make it so. It wouldn't be the first time consumers held a mistaken viewpoint about a product.

If you suggest the publishers should somehow try to adjust to be able to sell at that 50% lower price, I understand the reasoning, but don't advice holding your breath waiting for it to occur.

The other point of view is the customer's perceived value of the product. They're being told they don't own it, they can't sell it, it could go away tomorrow and there's nothing they can do. The value relative to a paper copy is less but they're being asked to pay more. Either way they looks at it they get pissed.

True enough if they are being told that, but I don't think that's the case across the board.
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Dennis