Quote:
Originally Posted by astra
Whoever was selling the book at £4.99 was making profit, ebook is much cheaper to produce than paper, thus is could be reduced even more in price and still be a profitable sale.
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http://en.wikipedia.org/wiki/Loss_leader
It's just like the Harry Potter novels. Once the series became a huge hit the next novels were often sold at a loss by large chain stores upon release (supermarkets such as Asda for example here in the uk), they do it just to get customers through the door. They more than make their money back via other purchases.
So yes very very popular releases such as this ARE often sold at a loss.