Quote:
Originally Posted by DNSB
Setting a higher price is often not the way to maximize profits. You need to balance the profits per sale against the number of sales. Takes me back to being forced to sit in on discussions about revenue vs. profits, profit maximization, pretty curves on graphs showing profits vs sales with the later 3D graphs trying to handle multiple variables including one memorable one that I thought looked like an attempt at a 3D Mandelbrot bug.
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I wasn't talking about maximizing profits. A private company (including Indie, Inc) can optimize total profits all they want and that should be their priority. A public company also needs to make the shareholders happy. Maximizing profit and profit margin at the same time doesn't usually work. And it is obvious that the Big 5 are not interested in maximizing total profits for ebooks. Is that a smart decision? It is definitely a good thing for Indies that happily took over what the Big 5 (for whatever reason) weren't going to occupy.