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Old 08-12-2011, 12:30 PM   #48
anamardoll
Chasing Butterflies
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@Sao

...except that it's very unlikely that ONLY Amazon would be losing money on eBooks.

Under normal pricing models, businesses "lose money" on sales all the time. Those items that lose money with each sale are called "loss leaders". The usual example is Thanksgiving turkeys -- those suckers don't actually cost $0.10 a pound.

Without agency pricing, Kobo could have coupons that apply to everything. B&N could have sales. Amazon could have "SciFi 99 cents day!" Stores could play around and see what works. With agency pricing... they can't.

Agency Pricing or no, Amazon is going to be just fine. B&N and Kobo need flexibility more than Amazon does -- and they aren't being given that opportunity. If you care about preventing an Amazon monopoly, you should be against agency pricing, imho, because once all the books cost the same, people usually go with the store that has the (perceived) bigger catalog. That would be Amazon at the moment. Kobo coupons could make a difference there, but they can't.
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