Quote:
Originally Posted by dickloraine
Please explain to me, how it should be possible, that optimizing amazons profit is in that case not equal to optimizing the profit of the author?
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Take $0.99 as example. Imagine that all books are now that price. Huge profit because sales of each book skyrockets? No. There is only so many books that can be read. Amazon's profit depends not on one book, but on all books. They make money on every book they sell. In the grand scheme of things they could care less who's book it is. But there is different kind of buyers that will buy for different reasons, so prices cannot be the same among all books. Do you all of a sudden have 4 times as much time to read because you used to buy at $3.99, or 5 times as much for $4.99 books - since they are now only 99 cent? For simpler math, imagine the royalties are the same percent for all prices: Amazon's profit depends on how much total revenue they generate. The profit for the individual book depends on how big a pie they get out of that total revenue. So Amazon's interests are not the same as a publishers / authors interest.