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Originally Posted by melchioe
Several folks have implied that all (or most, or many) of the costs inherent in pbooks go away with ebooks. I would dispute that. Don't get me wrong, I think ebooks should be less expensive than they are now. But costs don't go away.
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When you realize that the cost of manufacturing and shipping the physical book is one of the smallest parts of the total price, ebook pricing begins to seem almost in line. A paperback typically costs less than $1 to print and ship, a hardcover around $2. Some of the larger marginal costs - author royalities and retailer discount - are the same for both pbooks and ebooks. Ebooks also have certain fixed costs which need to be distributed over what is current as much smaller run, as ebooks do not sell nearly as well as pbooks. Additionally they have to share the amortization of some larger fixed cost with their pbook bretheren - such as publicity and advertising.
All totalled, the marginal cost for ebooks is perhaps a couple of dollars less than pbook, so it should balance out if the ebooks are sold for a dollar or two less - and, surprise!, a lot of them are.
