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The thing is, if you are producing a dead tree edition, the cost to produce the ebook is very little. There is cost involved in producing the various formats. Someone has to be paid to do it. Now that said, there is no reason for the ebook to be priced higer then the dead tree edition with some of the discounts that the dead tree editions get in book stores. That's where things go wrong. If I get a 20 or 30% coupon in email from Borders, that means that a $7.99 priced book will then cost me $5.87 including tax at 30% off and $6.34 at 20% off. Now if the ebook was priced at $5 then it would be ok.
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