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I talked with a guy a few months ago who had 10k copies of his first book printed himself. They cost $2 each. Paperbacks are even cheaper ~$1. The publishing companies make their money off the hardbacks and then print the low cost paperbacks to increase the authors popularity so that the next book has a larger hardback audience. Barnes and Noble for instance receives paperbacks at a wholesale cost of ~$5 dollars. That's a 4 dollar profit margin vs a ~13 dollar margin or so for hardbacks. For new authors most publishing companies aim to sell 10k hardbacks to recoup the advance and meager advertising dollars.
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