Thread: Answer as to why ebooks cost more than print books (1 publisher)
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Old 01-15-2011, 08:37 AM   #62
Kali Yuga
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Quote:
Originally Posted by TFWpublisher View Post
The costs that are the same for both versions? Cover art, editing, and promotion, and that's where it stops.
So you don't pay your authors any advances or royalties, then? Got it.

Or, perhaps you charge shipping on your ebooks?


Quote:
Originally Posted by TFW
Just because eBooks are easier to produce than paperbacks doesn't mean you can just throw them out there on the market and rake in the cash.
Why not?

Again, companies are most certainly not obligated to pass on any and all cost savings to the consumers. It is downright routine to lower costs in an attempt to increase profit margins.

If you pay one author a $10k advance, and another author a $30k advance, do you break out the abacus to determine exactly what the price differential ought to be on those books?

Or, you can start out by raking it in to begin with. The profit margins on a box of breakfast cereal purchased without coupons is allegedly close to 40%. Is this bad for their business? (Apparently not.) Is it immoral, if people are willing to pay the price?

Or, perhaps Harlequin is seeing a larger demand for the ebooks than the paper versions, despite the price parity. In which case, is there even an economic necessity to lower the ebook price?


Quote:
Originally Posted by TFW
The author and publisher have to work together to get as much exposure for the title as possible. There's a LOT of competition, and that's a wild understatement.
OK, but "price" doesn't have anything to do with "exposure."

And I'd guess that Harlequin knows better than almost anyone how price affects sales. Unlike many publishers, their titles are nearly a commodity; the brand and series heavily define and/or indicate to their customers what a book is going to be like. They do a lot of direct sales to the public, and it is highly likely that they analyze all the sales data extensively.

So even by now, I'd think they know better than anyone what the price elasticity of demand is on their books. If they believe they can charge 3¢ more for an ebook than for a paper book, there must be a reason for it.
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