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Old 01-28-2012, 08:03 AM   #61
latepaul
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Quote:
Originally Posted by MrPLD View Post
You're all missing the crux... It's not what the "real cost" of the book is that determines ebook sale price, it's what the market will tolerate.
Thank you. It's basic capitalism. You price your product at what the market will bear in order to maximise your profits.

However in an ideal market there's competition. Competition ensures that the prices stay as low as possible. Let's say I want to buy tomatoes for a pasta sauce I'm making, if one shop is selling tomatoes at a price which is way above cost then the one down the road can make money undercutting them.

The problem with ebooks is if I want to read Stephen King's latest book there's only one publisher offering it and with that publisher forcing the same price on all retailers there's no competition for that book. Of course I could go buy a different book that's competition of a sort - but that's like saying "Lettuce is cheaper make a salad instead."

Which is why I think agency pricing is wrong.
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