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Old 01-12-2011, 07:16 AM   #26
jbjb
Somewhat clueless
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Posts: 780
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Join Date: Nov 2008
Location: UK
Device: Kindle Oasis
Quote:
Originally Posted by Steven Lake View Post
I hate when people price stuff based on "value" to the end user rather than realistic cost/profit margin schemes like everyone else.
Businesses don't, in general, price based on cost + margin. They will charge whatever maximises their profit, using what they know about their margins and their PED ("Price Elasticity of Demand").

I suspect where ebook publishers are going wrong is that I'd guess their product is much more elastic than they think - a drop in price will dramatically increase sales which, given the very low Cost of Goods for an ebook sale will lead to increased profits.

/JB
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