Quote:
Originally Posted by charleski
The principal cost is simply the cost of generating and promoting the work itself - paying the author's advance, editing the text as necessary, commissioning cover art, etc. Actual manufacturing costs represent only around 15% of the price of a physical book, which is why it's reasonable to expect ebooks to retail at a discount of 20-30%.
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...from paperback costs, yes. There are other ways to replace the hardback, like Baen's eARCs.