Thread: Amazon vs Hachette
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Old 05-28-2014, 04:19 AM   #124
rhadin
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Originally Posted by HarryT View Post
So Hachette are whining about the fact that Amazon are refusing to discount books out of their cut of the retail price? My heart bleeds for the poor dears. How obvious it is now that Amazon are acting in an evil manner!
No, Harry, you have it wrong. What Amazon wants is not only to be able to set whatever discount price it wants but for the publisher to pay for any losses Amazon incurs by such discounting. The method of payment is to reduce the amount of money that Amazon pays the publisher. If Amazon currently pays the publisher 50% of the suggested retail price (that is, if the suggested retail price is $30 the wholesale price is $15), it wants to reduce that 50% it pays by some amount across the board (that is, on every book it buys wholesale from Hachette). That would enable Amazon to -- if it wants to -- discount the book even further yet retain its profit margin.

Read Mark Coker's explanation. It really is quite good. See Amazon's Hachette Dispute Foreshadows What's Next for Indie Authors.
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