MobileRead Forums - View Single Post - Publishers Now Offering Agency Pricing 2.0 (big win for Publishers)

pdurrant · 12-19-2012, 12:32 PM

It sounds reasonable to me. Publishers set an RRP and sell to retails at 70% of that price. Not much different to paper books, except that there the publishers sell to retailers at 45% to 55% of the RRP.

The main difference is the "no long-term loss leader". Retailers can't sell at a loss to gain market share over a significant time period.

However, efficient retailers can sell at a discount to RRP permanently.

12-19-2012, 12:32 PM	#7
pdurrant The Grand Mouse 高貴的老鼠 Posts: 74,010 Karma: 315160596 Join Date: Jul 2007 Location: Norfolk, England Device: Kindle Oasis	It sounds reasonable to me. Publishers set an RRP and sell to retails at 70% of that price. Not much different to paper books, except that there the publishers sell to retailers at 45% to 55% of the RRP. The main difference is the "no long-term loss leader". Retailers can't sell at a loss to gain market share over a significant time period. However, efficient retailers can sell at a discount to RRP permanently.