[anurag]

At http://www.teleread.org/2010/03/11/i...of-baen-books/

Given that Baen is frequently used as a counter-example whenever the matter of printing costs making up a small fraction a a hardcover’s total cost comes up, I thought it would be a good idea to hear from Baen about how it is able to keep its prices so low. Consequently, I arranged this e-mail interview with Toni Weisskopf, Baen’s publisher.

Weisskopf has many interesting things to say about Baen’s overall strategy, pricing, and the question of e-books “cannibalizing” printed books. The interview begins below the jump. (Links added by me.)
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Good read.