Quote:
Originally Posted by Fbone
Interesting. How would a retailer implement this, if the publishers approves. For every book sold $5 below cost the retailer has to sell one $5.01 above cost or five books $1.01 above wholesale price or something in between. Sell too many at a loss (bestseller, perhaps?) and the retailer may not show a profit for the publisher's entire catalog.
|
At Publishers Lunch one analyst said:
Quote:
|
n fact, Justice appears to have set up a system that will allow limited discounting of ebooks, so as to inhibit predatory loss-leader pricing of ebooks from the settling publishers. They acknowledge that settling publishers retain the ability "to prevent a retailer selling its entire catalogue at a sustained loss."
|
Quote:
|
So retailers can elect to give away ALL of the commission they receive over the course of a year in reduced prices to consumers--but they are not allowed to lose money selling ebooks if the settling publishers chose to introduce new, revised agency models. (They can lose money on individual titles, but not across a company's entire list over the course of a year.)
|
LINK
Amazon can therefore discount SOME bestsellers. But $9.99 for all the bestsellers is out the window and using ebooks as a loss leader will be limited.