Quote:
Originally Posted by Roy White
Someone mentioned that they thought the 9.99 price is a loss leader. I wonder if that's true? 9.99 seems like a fair amount of money to pay a company that, in return delivers to you a penny or so of electricity. I'll state the obvious here. A book made of paper and ink and a truck that has to dwlive it to a physical store that pays employees and so on (usual business overhead) and Amazon does none of that stuff. I think/guess that they make a substantial profit off the 9.99 bestsellers.
Or am I missing something? I usually am.
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Jeff Bezos has confirmed it is true for Amazon, but does not anticipate the price changing for bestsellers as they can make money by selling enough other books above cost. Furthermore he believes that publishers can make money at the $9.99 price point without the traditional overhead of paper publishing.