Thread: eBook Gold Rush
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Old 05-09-2011, 02:56 PM   #39
Ken Maltby
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The point has been made in the past, that it costs just as much to make one ebook as
it costs to make one pbook. In fact, in an effort to justify similar pricing for both,
it has been claimed that the cost per/book of the manufacturing, warehousing and
distribution of the pbook is a insignificant factor in the cost of the pbook.
(Sir Eddy's Amortization)

While I doubt the validity of these claims, there are certianly enough initial costs that the
pricing of the ebook must take them into account, in establishing a minimum return for
the effort involved. The whole calculation rests an expected number of unit sales. (One
advantage for the ebook is that the costs associated with a mis-sized printing run are
avoided.) That is all just to figure the break even point.

The tricky part is establishing a reasonable estimate of the demand for the product, it is
true for all marketable goods and services but is both particularly difficult and critical for
Intellectual Properties. (In my opinion this is made even more critical by the current,
idiotic "one shot" initial release marketing practices. Ebook could break out of that as
they need never be "out of print". )

But - there is no need or advantage to amortizing costs that you don't incur.
(Hollywood Accounting excepted, of course.)

Luck;
Ken

Last edited by Ken Maltby; 05-09-2011 at 03:16 PM.
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