Quote:
Originally Posted by kjk
No, my point is you can debate the physical costs of a product all you like, and come up with any number of calculations for it, (i.e. the 2nd book is free) but does that really give you what the book, physical or otherwise, should really cost? The cost of the "first book" isn't a set formula, nor should it be.
Saying a book should cost x or y because this is what paper costs is just as deceptive as saying this is what digital storage/file transfer costs, so that's how we should set book prices.
Isn't the market supposed to set prices?
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The market is setting prices -- people are either buying or they refuse to buy. That is the only way. And if the price at which people are willing to buy is below cost and some profit then nobody wants to sell and the product will not be available.
I just wanted to point out that is makes no sense looking at the cost of producing an additional unit only as a pricing guideline, unless it is a physical product that is expensive to produce, like a car.