Quote:
Originally Posted by gweeks
Yes, but you have the impact in the incorrect direction. With pbooks the publisher is providing the money to finance the book store. with ebooks they are not. That's an additional expense for pbooks that is not present for ebooks.
Greg Weeks
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That's not the understanding I came away with the last time this topic was discussed. It depends, of course, on what costs are being taken into account, what money is being paid to the publisher, and what happens with returns.
But from what I was told - or at least think I was told - the book stores were providing money to the publishers in anticipation of sales - i.e., paying something for the books sent to them - and that money provided the cash flow the publishers needed to operate. I have no doubt, as well, that there are some tax aspects involved, allowing the parties to defer income or perhaps accelerate expenses, which will make cash flow different than what it would otherwise appear from merely considering profits or costs.
Perhaps you are in the publishing business & can authoritatively explain that this is not the case.