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Old 03-10-2011, 05:49 PM   #31
Andrew H.
Grand Master of Flowers
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Join Date: Oct 2010
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Quote:
Originally Posted by JSWolf View Post
Once the eBook is out there, the money is spent except for the cost to add DRM. So there does come a point where X number of copies at Y price is where they break even and X+1 is where they make a profit.
That's true for some value of X - but the point is not simply to break even, but to find the right combination of sales and profits.

If your fixed costs are $10 and you sell 10,000 books at $15, your profit is $50,000. To reach these profits at an $11 price point, you'd have to sell 50,000 books. Undoubtedly you would sell more books at $11 - but I'm not sure you would sell 5 times as many.
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