Thread: Agency pricing
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Old 02-18-2011, 05:06 PM   #59
leebase
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Quote:
Originally Posted by Keryl Raist View Post
I think this is what agency pricing, when it's that high, is supposed to do, push you toward buying physical books.
Here's another explanation. Publishers know they can make the most money the first year when a book is released. They put out their highest priced product, the hard back book, and put out no cheaper way to get that content because the demand is highest and enough people will pay the higher price.

Publishers are equally happy to sell a high priced ebook as they are a high priced hard back. I don't think they really care if it's an ebook or a paper book. What they care about is getting the most revenue they can during the highest demand window for their product.

Customers, of course, want the content for the cheapest price. If a MUCH cheaper version of the product is available, they'll choose it. Who wouldn't?

So the pricing will remain high during that "high demand" time window whether it's hard back books or ebooks. Folks who don't want to pay the high price will WAIT for the cheaper version to come out. That's the paper back, or the reduced ebook price. The publishers again don't really care which you buy.

Lee
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