Quote:
Originally Posted by calvin-c
It's basic business management. Your various sales channels have different costs. Selling directly is the cheapest while selling via a multi-layer distribution channel (publisher to wholesaler to regional distributor to bookstore) is the most expensive since every level needs to make a profit.
But, if you base your sales price purely on the cost you end up losing your more expensive sales channels-and the sales you make via those channels, of course.
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If two different channels have different costs, and the end price is adjusted based on those costs, then the profit stays the same. It shouldn't matter to the company if they sell via the expensive channel or the cheap channel if the amount of profit they make from the sale remains the same.
Right now what they're doing is charging the same price (or more) for the cheap channel as the expensive channel. That means their profits are a lot higher. That's great for the company, but the consumer is getting ripped off.