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Old 04-20-2012, 02:38 AM   #533
Fbone
Is that a sandwich?
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Join Date: Jun 2010
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I don't understand this "if they can not make money on a $9.99 ebook" then they need to ....

For Amazon to sell it at $9.99 the publishers have to accept a lower wholesale price. Currently, they receive $9.09 (70% of $12.99) under Agency model. Subtract out the author's royalty of $2.27 (minimum) and we are left with $6.82 for the publishers. Has any publisher said they can't earn a profit on $6.82?

For ebooks already $9.99 under Agency we have $6.99 minus $1.75 = $5.24

Now if media/people are saying the new wholesale price should be $10 then the retailers have to tack on their costs which brings us to $11-13+ which we have now.
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