There are still ways for retailers to offer discounts on agency titles, they just need to do it in a way that doesn't change the book price set by the publisher.
One way is to offer some sort of after-sale reward, so the customer pays the price set by the publisher but gets a reward from the retailer proportional to the price paid. (e.g. Kobo have their Super Points scheme, Sainsburys give Nectar Points.) There is nothing to stop other retailers competing to offer larger rewards.
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