Quote:
Originally Posted by fjtorres
If it holds into the larger population (internet communities being self-selecting samples and all-that) it might explain the puzzling assertions that Nook is a money-losing operation despite its size. By all rights, 29% of the US market *should* be a money maker. But if a portion of that installed base is composed of non-buyers, the razor/blade model falls apart. Trouble lies that way.
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Absolutely, B&N and Amazon (and others) don't make anything on the freebies. And what is the net profit on a 99 cent book? Rough estimate is 65 cents minus transaction costs of 24 cents (new debit card law) is 41 cents max. You better be selling millions and millions
a day just to be noticeable on a balance sheet. My guess is anything under $2.99 is at cost or less otherwise they would have made the 70/30 cutoff lower.