Quote:
Originally Posted by Steven Lake
I hate when people price stuff based on "value" to the end user rather than realistic cost/profit margin schemes like everyone else.
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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