Thread: eBook Gold Rush
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Old 05-09-2011, 01:36 PM   #34
astrodad
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Quote:
Originally Posted by Elfwreck View Post
Okay, cost of production per unit not zero, but is possibly less than a penny. Per-unit costs are so tiny that they have to be calculated in batch and lumped in with overhead costs.

It does cost to run an ebook store, host files, allow data transfers, use shopping cart software--but the cost per book is so tiny that all the relevant fees tend to be calculated in a different part of the business expenses. (How much does a company pay per month for bandwidth, and how much of that is used by a single .5 mb download?)
The point is that production costs for ebooks are not zero-not by a long shot. You're right that business plans for ebook shops would be based on large numbers of books, but that fact doesn't negate the reasoning that there are still costs associated with producing these ebooks. Even still, production costs alone don't dictate the cost of a thing-its value to the company's customers does.
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