Quote:
Originally Posted by MikeB1972
Obviously you sell it at 2.99 then, when you have run out of people who will pay that, you drop the price to .99  |
Actually, you stay at $0.99 the whole time, because the vendor is apparently willing to pay you a substantially bigger cut in order to sell more books for less money and less profit.
cut * sales * unit profit
2*2*1
vs
1*1*3
Profit: 4 vs 3
Sales: 2 vs 3
Yes, making four times as much money per book manages to tip the balance in favor of the $0.99 books.