Quote:
Originally Posted by Daithi
I didn't divorce ebooks from pbooks. Quite the opposite, as I specifically assumed that both ebooks and pbooks were both being printed. I just pointed out that if you are going to produce both, you should focus on the business line that has the highest margin -- ebooks. Furthermore, I believe the logic behind my argument is valid whether it is one title being produced or 20,000.
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But he also was throwing in across the entire product line, which is not valid for any particular book. We are not comparing industries here, just formats.
Basically you can throw out the advertising costs because the will (or we can assume they will) be the same for either pbook or ebook. The production costs of editing the book and preparing it (electronically/digitally) are equivalent, but from there the costs diverge.
For the pbook there is all the printing, shipping, storage returns, etc.
for the ebook there is computer storage and distribution (but those cost should be much less).
Also we are not talking about the costs of the retail piece of the business, but the publisher side costs and profits.