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Originally Posted by rlauzon
Retail costs for a physical product are for shelf space, stocking fees, taxes for stock on hand, etc. Most of those costs disappear for eBooks, and the rest of those costs are greatly reduced. So instead of taking a $3.50 cut, a retailer takes $1 for an eBook.
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If I were a retailer, I'd take issue with that statement. I still have to pay for office space, employees, operating facilities, server hosting, bandwidth, electricity, cooling, disaster recovery services, benefits and health care, legal fees, city taxes, county taxes, state taxes, federal taxes, fica, local telco, long distance telco, cleaning services, office equipment services...the list goes on and on.
We don't handle any physical inventory at our office, and still running the office and the data center alone is pretty expensive. I don't think Fictionwise has ever fessed up to their sales figures, but I somehow doubt they're selling millions of titles a month.