Publishers still missing the point on e-book prices

[stonetools]

Originally Posted by JoeD

Had a quick google to see if I could find anything to backup the claim and turned up this post by amazon.




You may be skeptical about what Amazon state, however, if what Amazon says is false, it would be a trivial matter for the affected publishers to show otherwise.

Also, just noticed Elfwreck's post, that's additional evidence of agency pricing impacting sales from the people who perhaps care the most about it and have the most to lose.

Even if Amazon' statement is true, what matters to the authors is not unit SALES but total amount of ROYALTIES earned. If the total royalties are higher, authors are happy no matter what the sales.
With agency pricing, publishers get to charge what they consider to be the market price for premium content. If it were not the market price, then you would see a fall off in sales for premium content- or at least slow growth in sales. What we see are rapidly rising sales. Sorry, but them's the facts.

[Greg Anos]

Originally Posted by stonetools

You might want to consult
THIS ECONOMIST>
After 235 years, his master work holds up surprising well. You might want to review his discussion of "market price."

OK, let me simplify it for you. If a product is overpriced, demand for the product will decline and sales of the product will go down. Precisely the opposite has happened with ebooks.
The burden of proof is therefore on those who thinks the publishers have "got it wrong".

He was describing a system of open competition, not a system of multiple parallel monpolies. That's a slight difference...

[Greg Anos]

Originally Posted by stonetools

Even if Amazon' statement is true, what matters to the authors is not unit SALES but total amount of ROYALTIES earned. If the total royalties are higher, authors are happy no matter what the sales.
With agency pricing, publishers get to charge what they consider to be the market price for premium content. If it were not the market price, then you would see a fall off in sales for premium content- or at least slow growth in sales. What we see are rapidly rising sales. Sorry, but them's the facts.

Bythat logic, self publishing should have no effect on sales of premium content. (I'm not certain how you define premium content).

[dkb]

I now get most of my ebooks from the library. My ebook spending has decreased by 80% of what I used to spend. I'm now really reluctant to pay even $10 for a book I'm only renting.

[JoeD]

Originally Posted by stonetools

If it were not the market price, then you would see a fall off in sales for premium content- or at least slow growth in sales. What we see are rapidly rising sales. Sorry, but them's the facts.

Didn't Amazon state that there has been a significant drop in growth for agency books? Which has not been matched by a similar drop in the growth rate of non-agency priced books.

Can I ask you to provide a link to evidence of increased growth of sales in agency priced books? I've had another quick google but not found anything yet.

[HansTWN]

Originally Posted by stonetools

Substitute " Amazon" for "discounter", and you pretty much have the publisher's and independent bookseller's argument for agency pricing.

In a word NO. Amazon not only has the best prices, they also have the best service. They offer free samples, they let you return books no questions asked, they have the best designed website, great reading devices, very helpful user discussions for each item, etc.

[stonetools]

Originally Posted by Ralph Sir Edward

Bythat logic, self publishing should have no effect on sales of premium content. (I'm not certain how you define premium content).

It may not be having all that much effect. E-book buyers tend to buy mostly the same books as DTB buyers, according to the NYT best seller lists:

HARDCOVER FICTION

11/22/63, by Stephen King
RED MIST, by Patricia Cornwell
THE LITIGATORS, by John Grisham
DEATH COMES TO PEMBERLEY, by P. D. James
KILL ALEX CROSS, by James Patterson

E-Book Fiction

RED MIST, by Patricia Cornwell
THE DROP, by Michael Connelly
THE LITIGATORS, by John Grisham
KILL ALEX CROSS, by James Patterson
THE HELP, by Kathryn Stockett

[Kevin8or]

Originally Posted by tompe

A lot of added value. You can choose the size of the letters. You can annotate, look up word easily in a dictionary or on the web, share your notes on the book with friends and so on.

Indeed, e-books both add and subtract value. Publishers extol the added value to justify an increased price but remain mum on the subtracted value that merits a decreased price.


Edit: I just realized that the conveniences tompe lists are an added value that you've already purchased when you bought your e-reader. The publisher sells words. It's the device manufacter that sells you the conveniences of manipulating those words. There is value there, and you've already paid for it.

[tponzo]

Originally Posted by Daithi

I can only go with my own personal reaction to the new pricing. I bought a lot fewer best sellers this year than I did last year. I've also bought more used physical books this year than I did last year. I have also tried a lot more self-published authors this year than I did last year. Of course changes to my buying patterns are all just anecdotal evidence, but if I am not the only one who has changed his purchasing habits then the publishers truly are shooting themselves in the foot.

I'm with you, Daithi. My auto buy list is half as long as it was before agency pricing. I also have actively looked for (and found) more indie publishers and authors. Agency pricing on top of DRM just seems like adding insult to injury.

[stonetools]

Originally Posted by JoeD

Didn't Amazon state that there has been a significant drop in growth for agency books? Which has not been matched by a similar drop in the growth rate of non-agency priced books.

Can I ask you to provide a link to evidence of increased growth of sales in agency priced books? I've had another quick google but not found anything yet.

I think a look at the bestseller lists will reveal that agency priced books are selling very well . Whatever Amazon says, its own bestseller lists are dominated by agency priced books

[stonetools]

Originally Posted by tponzo

I'm with you, Daithi. My auto buy list is half as long as it was before agency pricing. I also have actively looked for (and found) more indie publishers and authors. Agency pricing on top of DRM just seems like adding insult to injury.

There is simply no justification at all for the proposition that ebook prices must always be lower than the lowest pbook price, irregardless of the author , whether new or used, or date of publication . That's just wrong from any POV. This writer put it best:

Some readers want prices to go down from $10 to $1. Yet they still want Stephen King and Pat Conroy level books. This is the second biggest threat to the future of books.

[Blue Tyson]

Originally Posted by stonetools

There is simply no justification at all for the proposition that ebook prices must always be lower than the lowest pbook price, irregardless of the author , whether new or used, or date of publication . That's just wrong from any POV. This writer put it best:

There's also no justification for Hachette raising their prices across the board 64% in Australia.

And given you'll actually always be able to get Stephen King for free, no reason at all for anyone to pay for books like that if they don't want to.

[spindlegirl]

Originally Posted by tponzo

I'm with you, Daithi. My auto buy list is half as long as it was before agency pricing. I also have actively looked for (and found) more indie publishers and authors. Agency pricing on top of DRM just seems like adding insult to injury.

When I first got my E-reader I bought some books because of the novelty, but quickly realized I couldn't live on a steady diet of expensive books, when I could just put myself on a waiting list for library books.

When E-readers become as commonplace as cell phones, people will be turning to affordable sources for their reading, and it will reflect in how much people buy vs borrow. Much like with dtbs I was a heavy consumer of library books and books I liked that I could find for under $5.

I couldn't afford hard cover first publications either, so I was not in their target market. I also am kind of picky about books I want to keep, so I am a heavy "tester" of books via libraries. I have to absolutely love anything I buy. Luckily, the public library and places like MR and PG make it so that people of all budget demographics can amuse themselves with literature.

[JoeD]

Originally Posted by stonetools

I think a look at the bestseller lists will reveal that agency priced books are selling very well . Whatever Amazon says, its own bestseller lists are dominated by agency priced books

That doesn't prove agency pricing is working, you can infer very little from those lists. If agency books sold 1000x times more books than non agency (prior to agency introduction) and now sell only 500x as many, they'd still dominate the best seller lists despite a reduction in sales or growth.

Ps yes the 1000x was a arbitrary and ridiculous number for the example, I just wanted to point out that despite a decline in popularity you can still remain a best seller for a time, but the gap will be closing at a higher rate than it may otherwise have.

Amazon's statement however is based on actual sales data and growth rates extracted from that data. The best seller lists do not disprove anything stated in the amazon quote.

[sabredog]

Originally Posted by stonetools

There is simply no justification at all for the proposition that ebook prices must always be lower than the lowest pbook price, irregardless of the author, whether new or used, or date of publication .

What a total load of horse manure

The rise of cheaper priced ebooks has resulted in a lot of very good indie authors who are as good an author as the aforementioned.

There is no justification at all for high ebooks prices in parity with hardcover prices.

I paid AU$35 eighteen months ago for the latest ebook in a long running SF series and have decided never to do so again, certainly not at that price.

High prices along with DRM and restrictive distribution practices are the main reasons why prospective readers turn to other sources. Hatchette and their competitors simply have very little, or no idea how to operate within the modern, digital age.

If they and their inept cousins in the entertainment and music industries started spending the money they waste on copyright trolls and canvassing US senators, into genuine business model changes, they might find that their bottom dollar actually improves.

Amazon recently reported one million Kindles are sold per week currently. Alone, that is a huge market available to publishers instead of attempting to sell overpriced hardcovers to a changing market and demographic.

A threat to the future of books. Twaddle.