Quote:
Originally Posted by leebase
The cost of a book has NEVER been about the cost of manufacturing and distributing books. Amazon Indie authors, or Amazon Imprint authors are cheaper because they can’t command higher prices.
And there has ALWAYS been competition for books. There are all the other books you could buy. There are library books. used books. More importantly, there is every other form of entertainment vying for people’s attention and dollars.
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I would not say the price of a book has never been about the costs of manufacturing and distributing. Such costs become very relevant in a highly competitive market where margins are low in that they set a floor for the price. Few want to sell at a loss for long. If your competitor is more efficient and is able to sell at a lower price, you face the choice of matching them, distinguishing yourself from them in some way or getting out of the market. Some Amazon authors indeed could not command higher prices. Some could. But just because you can does not mean you should. Stephen King could price his next book at $100 per copy, and would probably sell a few books at that price. But he would make nowhere near as much money. It is about finding the optimum pricing strategy. Amazon's limitation of its top royalty rate to books priced within a range makes it obvious that Amazon considers books priced outside that range unlikely to be priced optimally. Tradpub pricing imperatives differ, particularly as they sell different versions of their books, including hard covers and various types of paperbacks as well as e-books and lately even audiobooks. It would be irrational if they priced without regard to the effect of the pricing of one type of book on the sales of the others. Their task is to maximise sales over all categories, leading to windowing and similar practices.
Totally agree with your second paragraph.