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Older book only available in paper: scanning machine that can scan thousands of pages per hour and convert it to text. With company worker being paid to do this, + marketing + the little extras = approximately $2 per ebook.
Newer book in their possession in digital text format from the author: convert it, maret it, post it = $0.50 per ebook (plus $0.15 for the 10 seconds it takes to use an already configured program to create the DRM)
Forcing people to pay more by using lame excuses why ebooks are bad or cost more (DRM, piracy, time to "make" it) = priceless... for everything else theres smashwords.
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