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Originally Posted by Andrew H.
If the cost of producing an e-book is $4, you're better off selling 20 at $10.
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The "cost of producing a book" depends on the number sold, for ebooks. Print books have a base production cost per book (which is still somewhat flexible, but at least calculable for a given print run); ebooks don't.
Quote:
(And there's no evidence that I've seen showing any precipitous drop in the number of e-books sold when the price went from $10 to $14).
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The market has been steadily increasing for years, and skyrocketed in the last couple of years. The issue isn't whether sales "dropped," but whether they failed to increase as fast as they would have at the lower price-point.
Certainly the sales of $1-$4 ebooks has climbed dramatically since Agency Pricing went into effect. One issue that needs consideration is how many $3 books were sold to someone who would've bought a $10 bestseller but decided that, at $14, they'd rather buy one or more indie books at the lower price.