All color mine, not in originals.
Quote:
Originally Posted by rhadin
[ red original quote, green omited from original post ]
Quote:
Originally Posted by eschwartz
I was discussing Hachette's products, which cost nothing for them to make and therefore everything is profit for them. Amazon does indeed have overhead (since they are not selling something that costs nothing to produce, they are selling something that costs money to buy from the publisher) -- and that is a problem for Amazon, so Hachette is all good anyways, mmmkay?
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Please provide the independent source that supports your statement quoted above. |
Quote:
Originally Posted by Hrafn
Hachette's (or any publisher's) incremental cost for ebooks is zero (there is no printing, distribution or similar incremental costs) -- all their ebook production costs are fixed. Each additional ebook sold is therefore pure incremental profit for them (they do of course have to cover their fixed costs from this in order to break even).
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Quote:
Originally Posted by rhadin
So then, you are saying, the statement is not true, that there are costs and all is not profit.
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Seriously? First you quote out of context a reply to a reply (in red), then to make your point you conveniently omit the sentence right after (in green). Then you get explained again the meaning of your out of context quote (by somebody else), and all of a sudden that makes you think you are right in the first place?
What is lacking is your reading comprehension, or what is worse, you knew exactly what you were doing by misrepresenting words for your own advantage. Go back to the original, the reply to your own post:
Quote:
Originally Posted by eschwartz
Your excellent piece of nonsense applies only to pbooks, and is thus completely irrelevant.
A pbook that costs x to make and store and ship must be sold for x+profit, and it is possible to lose money on it.
An ebook costs 0 to make and store and ship, and any price = profit.
Both have the overhead to pay off, but that is the same no matter how many sell, so the only thing that matters is maximizing revenue.
And if Amazon makes more revenue by selling more books for less per-unit cost (which they claim), the publisher gets an equivalent amount more under Agency, and under wholesale the unit price doesn't matter so they make even more.
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It simply means that for an ebook to be profitable overall all it needs is pay for creation, which is fixed. Once that happens that ebook never has a chance to reduce or eliminate the profit overall at any cost it is sold at (even for free). A pbook will never ever be profitable if each unit is sold below manufacturing cost, no matter how low the overhead is.
Which is contrary to your belief that a set number (e.g. 100,000) of sales is needed to break even (Post # 65). For ebooks it is a set number of $ to break even, not # of sales. Each ebook sale is profit in the amount of the price the publisher is selling it. All of that profit first goes toward paying for the overhead (creation + advance), and then a certain % amount of that profit from additional sales goes to publisher as overall profit for them. The rest is going to the author. It is not rocket science.