@OtterBooks,
What I mean is that if they want to make X profit on an ebook and price it at Y dollars and only Z people buy, then if they didn't make their X profit, next time they post a backlist book, they will post it at a price of Y + A where "A" is meant to make up the difference given an estimated Z number of buyers.
In other words, if they were counting on me and you buying Faulkner at $10 a pop (for $20 net profit), and only you bought (thus, a $10 profit), then when they publish the Hemmingway backlist, they'll use those number to justify an increase to $20 per book because they already figure they won't get money from me, but they might get money from you.
This is my fear -- that the marketing and pricing divisions at Knopf are run by insane bean counters who don't understand their customers.
