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.
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Easily.
Modern retailers do it all the time.
Check here:
http://dealicacy.com/?p=225
Or check Amazon's daily hour-by-hour gold box deals or their Black Friday deals. They can track sales and inventory on a transaction by transaction basis with them newfangled computer gizmos.
All they have to do is track the number of loss leader and number of profit-making sales.
The feds are trying to do the BPHs a favor by getting them to understand that you don't have to make a profit on every single ebook sold and that there is *more* money to be made overall by increasing the *total* volume of product sold.