This chart is basically the same as one in the NY Times a year or more ago.
Quote:
Originally Posted by Elfwreck
Makes it very clear that the point of Agency pricing is *more profit for the publisher* rather than better treatment of the author or more benefit to the consumer.
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Not really. You're not looking at the publisher's
profits, you're looking at their
revenues -- which means there are numerous costs left out of that chart. The costs for the advance, editing, marketing, legal and overhead all have to come out of that $5.92 per unit in revenues.
There's also no accounting for the many books that don't sell enough for the author to earn back their advance, or the many titles that do not break even.
And what happens if the ebook price is $10 instead of $13?
17% to author = $1.70
30% to retailer = $3.33
Digital distribution = $0.90
Revenues = $4.10
If you lower the price, 2/3 of the price cut comes out of the publisher's revenues. They'd have to sell 30% more copies at the lower price point just to break even.
Shouldn't you know all this by now?
