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Hmm... I guess I have some time for some useless pontificating.
1. The publishers have a point that it costs about as much to make ONE ebook as it
does to make ONE pbook. The thing is though, it costs next to nothing to provide all
the additional ebooks needed to meet any demand.
2. Cost is a factor that relates to how low you can price a product, so that you can
out sell your competition and obtain a favorable market share.
3. Most goods and services are priced "to what the market will bare" or to what the
consumer is willing to pay, and NOT in a manner directly tied to costs.
4. "The Rule of Supply and Demand" effects pricing as scarcity relates to demand. Scarcity comes from an inability to meet demand. Demand for a product can be more
than the production capability, this is often a temporary situation or production can be
deliberately limited to effect the supply side of the equation. ( This only works if you
have no competition or if you all agree to limit the supply.)
5. There are obvious constraints on production for most products. It takes time and
resources to create each individual item sold. You can only have the supply of corn
that the amount of farms growing corn can produce in the time available, no more.
Distribution and marketing of a physical product can effect the supply side as well, too
many available in a location can mean that everyone who wanted it has it and the supply
will exceed demand in that location, the opposite as well. ( This can also be artificially created, "Georestrictions" come to mind.)
6. A digital file can be reproduced as needed, in any quantity, and delivered to
anywhere, at next to no production cost. It costs next to nothing to have a virtually
unlimited supply on hand for instant delivery. So there is no scarcity, no supply side
issues.
7. The only scarcity/supply side issue comes from the ability to produce that first initial
file. The production of the author editor team. That seems to me to be a natural and
obvious factor that should effect the pricing of ebooks. It would be most like the effect
of an initial limited production capability for a high demand physical product. ( I know I
would pay more to have an ebook of one of Jim Butcher's series, on or near its release
date.)
8. The huge volume of in copyright books could represent a very lucrative market for an
ebook publishing operation, once they come to grips with the wasted potential of all the
"out of print" literature. Making a few dollars on books that are not the current high
demand books, and making a higher amount on the few new books out, would make for higher profits and happier customers, as well as more "in distribution" ebooks for all.
Just my 2 cents worth.
Luck;
Ken
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