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Old 01-08-2010, 10:28 AM   #19
Kali Yuga
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Quote:
Originally Posted by cian View Post
The margins are higher, but (and I can only really comment on the UK here) the sales are tiny in comparison to paperbacks. Also in the UK the discounts are now very large on hardbacks (up to 50% in some cases), and (going by discount/returns shops) the return rates must be quite high.
Correct, but my best understanding is that the profits / margins are significant enough for the process to make sense. (AFAIK hardcover royalties are also higher, so it's beneficial for the writers as well.)

As to the discounts, the way it works in the US (and presumably the UK, but I'm not sure) is that the retailer will pay the publisher a percentage based on the actual cover price, not the price the retailer charges. So if there's a huge discount, the retailer is basically taking a small loss. This is typically referred to as a "loss leader," e.g. they lose a small amount on the new Harry Potter book just to get you into the store, and thus encourage you to buy other (profitable) books.


Quote:
Originally Posted by cian
Why don't publishers just charge more on new books? If you can't wait for the latest book then you pay more?
If you mean set the price at £20 for the ebook new, drop to £15 after 3 months, then £10 after a year, IMO that's probably a good plan. The main issue (again, in the US but probably elsewhere) is that the retailers are pushing for lower prices from the get-go. This pricing pressure, by the way, fuels publishers' attempts to lower the royalty rates, which IMO is not particularly beneficial.
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