Quote:
Originally Posted by GeoffR
Here is an interesting exercise: If you were a publisher, and the numbers in this poll were represenative of your customers' buying behaviour, how would you price your ebooks to maximise earnings?
My guess would be to set the normal ebook price about the same as the paper book price, and then ocassionally run short-duration sales at a lower price.
Then most of the customers in groups 1 and 2 would buy the ebook at the normal price, those in group 3 would buy the paper version instead at a similar price, and those in group 5 would wait and get the ebook when it is on sale at the lower price. Only the revenue from the 15% or so in group 4 would be lost, but the higher price paid by the 35% or so in groups 1,2,3 would more than make up for them if the normal price was more than double the sale price.
Perhaps the big publishers' pricing strategy is not too unreasonable after all? I know MobileRead members are not typical, but if anything I would have thought we were more price sensitive than typical readers rather than less.
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Good post. As a publisher you would pick up roughly 40% of the potential market initially. It then becomes a matter of how much leakage there will be from the remaining 60%. This is something that publishers would need to experiment with and the survey gives no real assistance. I'm sure some proportion of Group 4 could still be tempted by a good sale, whilst some in group 5 would lose interest or fail to purchase for some other reason.
I am, as I mentioned, surprised by the number of people prepared to pay the same or more for an ebook. There may well be enough to validate the present pricing strategy. Given my bias against the large traditional publishers, it is not what I either wanted or expected. However, it is doubtful that this strategy works well for new and less established authors, though this of course could be allowed for.
Interesting.