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In fact, the paper/printing/binding of most books costs about $2.00…so if we were to follow the actual costs in establishing pricing, a $26.00 “physical” book would translate to a $24.00 e-book
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If this is to be believed, the major reason for the price difference of a hardback vs a paperback is the marketing. If that's true, I can think of some books that would sell like hotcakes if they were under 10 bucks in hardback, without a dime spent on marketing. The next Wheel of Time book comes to mind.....
The other cost savings in ebooks of course is the lack of remainders - retailers will never ever have to return unsold copies of ebooks. At the most they'll have to stop selling them when their sales agreement expires.