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Old 12-10-2009, 11:02 AM   #88
jasonkchapman
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Quote:
Originally Posted by kennyc View Post
But that is just silly. The price should be based on the cost of doing business which has got to be less for digital than for hardback or paperback.
If you're saying that all prices should be based on the cost of doing business, then I have to disagree. If your saying that only publishers are required to adhere to this rule, then it's a little bit unfair, since other businesses aren't required to do so.

Economically, the more commoditized a product is, the more closely its price tends to be tied to the cost of doing business. The more unique it is, the less costs tend to impact price. Demand-side forces

Clearly, e-books, and books in general, are not commoditized, otherwise titles would be interchangeable and lack of availability of one title would not lead anyone to the darknet. It would lead them to just pick a title that is available. The fact that consumers want this title or that title puts e-books squarely in the "unique product" category--more akin to a limited-run lithograph than a can of peas--where prices are based on the demand-side "desirability" of the item.

I do, however, completely agree with your earlier post. The publishers are squandering an opportunity to grow with the inevitable e-book market rather than fight it. They could not only turn a profit on it, but they could guarantee an enormous amount of good will.
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