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Old 07-20-2018, 11:42 PM   #1
Derf
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eBook prices?

So here's a question... and I'm sure we can all speculate, but I do appreciate knowledgable answers.

A writer should be paid for their work. An editor should also be paid for their contribution. And the publisher also needs to make money. And the distributor wants a cut. And then the retailer needs to make a profit. And at the end of the day a paperback book might sell for say, $15.

Better yet, let me cherry pick an example. I just did a search on Amazon for "Dan Brown" and I found his 2014 book Inferno for $8.49 in paperback.

Now, an eBook, in my mind seems to cut out a lot of the middle-man costs for markup. You still need a writer with a good story, and an editor to whip a manuscript into shape. You may even still need some help with typesetting, layout, cover art, and what not. And of course there will still be advertising.

But no longer do you need a publisher who invests in paper, ink, glue, and machinery for printing and binding physical books. With a digital eBook you don't need a distributor, who has warehouses and trucks, the personnel with forklifts and shipping logistics to move the mass volumes of books. And you can also limit (in a large part) the cost to retailers, since they don't have the overhead to lease a building, cover insurance, pay employees to move inventory and checkout customers.

An eBook just needs a server to host it. Sure, there may be associated costs with hosting a server, or costs to license DRM encryption? But why is the cost of an eBook so high? In the case of the Dan Brown example above, the eBook on Amazon costs more than a physical paperback @ $9.99. Not to mention, you had to spend some amount of money on an eReader to read that book on it.

In my mind, an eBook does away with so many of the costs that drove the price of a book to where it sits. And when eBooks came along, everyone just wanted to keep the status quo and say 'well, it used to be about ten bucks to read a book, so lets keep it at ten bucks'. Even though so much of the process has changed.

I recall when I used to go to different computer software stores back in the 80's and 90's, even early 2000's, and to buy some piece of software was an investment. $30 for this program, $40 for that game. Then Apple came along with the iPhone in 2007 and said all these cool apps are going to be $0.99 or a $1.99. And even though there are apps that now cost $3, or $5, or $10, for the most part they are impulse buys.

eBooks, in my mind, should be like that. You spent $100 or whatever on some piece of hardware to read them. There's no physical copy, just ones and zeros that exist in the ether. Make the eBook version $2 or $3.

The music industry evolved too. You used to go into a record store and judiciously pick which new album you would spend your $17 on, now with Apple iTunes, or whatever you use, you can pick those few hits off an album for a buck a piece.

The same is true with movies. Buying a VHS or DVD or BD is more than buying the digital version in whatever content provider you use when you choose to buy the digital streaming version.

I guess I am just wondering why content consumption, for entertainment purposes, in a digital age, at least for for music, movies, and apps evolved to a cheap, impulse buy price range. But books, in the digital format, still command a premium price?

I guess this is partly a rant, but I'd love to hear what you think. I'm sure there is a lot of 'establishment' wanting to hold onto the power/money/system, and marketing probably accounts for a huge percentage of physical and digital content... but it works in other media types to be cheaper in digital.

Why didn't Amazon be like Apple and Google and provide a platform for writers to publish their ebooks for $1 and get $0.75 royalty on every sale? It just doesn't make sense to me.

Last edited by Derf; 07-20-2018 at 11:46 PM.
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Old 07-21-2018, 12:09 AM   #2
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This has been hashed repeatedly. Look at some of the older threads on this very topic!

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Old 07-21-2018, 01:18 AM   #3
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Quote:
Originally Posted by Derf View Post
So here's a question... and I'm sure we can all speculate, but I do appreciate knowledgable answers.

A writer should be paid for their work. An editor should also be paid for their contribution. And the publisher also needs to make money. And the distributor wants a cut. And then the retailer needs to make a profit. And at the end of the day a paperback book might sell for say, $15.

Better yet, let me cherry pick an example. I just did a search on Amazon for "Dan Brown" and I found his 2014 book Inferno for $8.49 in paperback.

Now, an eBook, in my mind seems to cut out a lot of the middle-man costs for markup. You still need a writer with a good story, and an editor to whip a manuscript into shape. You may even still need some help with typesetting, layout, cover art, and what not. And of course there will still be advertising.

But no longer do you need a publisher who invests in paper, ink, glue, and machinery for printing and binding physical books. With a digital eBook you don't need a distributor, who has warehouses and trucks, the personnel with forklifts and shipping logistics to move the mass volumes of books. And you can also limit (in a large part) the cost to retailers, since they don't have the overhead to lease a building, cover insurance, pay employees to move inventory and checkout customers.

An eBook just needs a server to host it. Sure, there may be associated costs with hosting a server, or costs to license DRM encryption? But why is the cost of an eBook so high? In the case of the Dan Brown example above, the eBook on Amazon costs more than a physical paperback @ $9.99. Not to mention, you had to spend some amount of money on an eReader to read that book on it.

In my mind, an eBook does away with so many of the costs that drove the price of a book to where it sits. And when eBooks came along, everyone just wanted to keep the status quo and say 'well, it used to be about ten bucks to read a book, so lets keep it at ten bucks'. Even though so much of the process has changed.

I recall when I used to go to different computer software stores back in the 80's and 90's, even early 2000's, and to buy some piece of software was an investment. $30 for this program, $40 for that game. Then Apple came along with the iPhone in 2007 and said all these cool apps are going to be $0.99 or a $1.99. And even though there are apps that now cost $3, or $5, or $10, for the most part they are impulse buys.

eBooks, in my mind, should be like that. You spent $100 or whatever on some piece of hardware to read them. There's no physical copy, just ones and zeros that exist in the ether. Make the eBook version $2 or $3.

The music industry evolved too. You used to go into a record store and judiciously pick which new album you would spend your $17 on, now with Apple iTunes, or whatever you use, you can pick those few hits off an album for a buck a piece.

The same is true with movies. Buying a VHS or DVD or BD is more than buying the digital version in whatever content provider you use when you choose to buy the digital streaming version.

I guess I am just wondering why content consumption, for entertainment purposes, in a digital age, at least for for music, movies, and apps evolved to a cheap, impulse buy price range. But books, in the digital format, still command a premium price?

I guess this is partly a rant, but I'd love to hear what you think. I'm sure there is a lot of 'establishment' wanting to hold onto the power/money/system, and marketing probably accounts for a huge percentage of physical and digital content... but it works in other media types to be cheaper in digital.

Why didn't Amazon be like Apple and Google and provide a platform for writers to publish their ebooks for $1 and get $0.75 royalty on every sale? It just doesn't make sense to me.
Good Question. Good Points.

When I was younger and my fingers were super supple, my hearing off the charts, I wanted to find a song. I went to the guitar shop, and other places and finally found a guy who knew the song by a Canadian guy, Neil Young (1993) and by the Band (1978), and later other groups.

HELPLESS
"Blue, blue windows behind the stars
Yellow moon on the rise
Big birds flying across the sky
Throwing shadows on our eyes"

Why I wanted the song then, I don't remember. It seemed hard to get then.

Now it is easy with the computer, with Alexa, etc.

Now if I want Alexa to play say "16th Avenue", I say "Lacy J Dalton" "16th Avenue" and Alexa will play part of it without a subscription and ask me if I want to subscribe.
But I am tricky and if I say Alexa play the song with the words "cowboys, drunks, and Christians" Alexa will play all of 16th Avenue as many times as I want. Likewise my computer will play it off youtube without a problem.

You can't ask for a book like that, though you only want to read a book usually once so the owners, and sellers drive a much harder price for a book than they do a song.

Simply put they can charge most people more for a book.
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Old 07-21-2018, 01:28 AM   #4
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You are under the false assumption that things are priced based on what they cost to produce. That is incorrect. They are priced based on how much the seller can get a buyer to pay, regardless of what it cost to produce the product.

How else could a restaurant charge $3 for a glass of iced tea? Or $6.75 for a slice of pie for dessert? These restaurant prices make about as much sense as eBook prices. Yet, there you have them.
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Old 07-21-2018, 01:36 AM   #5
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This is a really tired old subject that's been discussed to death, so I'm not sure how much response you'll get to your thread. I'll add a few things...

The book you mention is $9.99 in both paperback and ebook, the difference being Amazon is discounting the paper book 15% and due to the pricing model (different than paper) used for most eBooks aren't allowed to discount the price (the publisher sets the ebook price and any sale prices).


Quote:
But no longer do you need a publisher who invests in paper, ink, glue, and machinery for printing and binding physical books. With a digital eBook you don't need a distributor, who has warehouses and trucks, the personnel with forklifts and shipping logistics to move the mass volumes of books. And you can also limit (in a large part) the cost to retailers, since they don't have the overhead to lease a building, cover insurance, pay employees to move inventory and checkout customers.

An eBook just needs a server to host it. Sure, there may be associated costs with hosting a server, or costs to license DRM encryption? But why is the cost of an eBook so high? In the case of the Dan Brown example above, the eBook on Amazon costs more than a physical paperback @ $9.99. Not to mention, you had to spend some amount of money on an eReader to read that book on it.
Keep in mind that the printing costs (paper, ink, binding, etc) are a small part of the overall cost of a paper book. In many cases eBooks still have distributors that get them into some of the eBook stores that aren't Amazon, B&N, etc. and there are customer support costs involved with ebooks that paper books don't have. Mulitple DRM servers run in the many thousands of dollars per year (just software licensing & support, hardware & bandwidth are extra) along with the per book DRM fees which at last check were around $.22 per book for anyone using Adobe's DRM. Beyond that what it costs to produce the book (or album, etc.) has very little to do with what the book sells for. Never has.


Quote:
eBooks, in my mind, should be like that. You spent $100 or whatever on some piece of hardware to read them. There's no physical copy, just ones and zeros that exist in the ether. Make the eBook version $2 or $3.
Other than for the occasional sale $2-$3 only works in the self-publishing world and even then it's not enough for the author to make a living in general and other than introductory offers even that market has largely moved beyond such pricing. You'll find that many find the ebook to be much more valuable to them than a paper copy.


Quote:
The music industry evolved too. You used to go into a record store and judiciously pick which new album you would spend your $17 on, now with Apple iTunes, or whatever you use, you can pick those few hits off an album for a buck a piece.
Yes, you can buy individual tracks. There are eBooks similar to this where you can buy a part at a time, but you kind of need the whole book (album) for it to really "work" so...


Quote:
The same is true with movies. Buying a VHS or DVD or BD is more than buying the digital version in whatever content provider you use when you choose to buy the digital streaming version.
There are plenty of examples where the digital movie will cost you much more than a physical blu-ray (which often also includes a digital copy). Again, the price has little to do with the format and cost of producing it.
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Old 07-21-2018, 01:55 AM   #6
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What kills me is when an e-book costs more than the printed version. E-book have zero printing and shipment costs, so how do they justify charging more for it? It's like they are price-gouging their e-book costumers.
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Old 07-21-2018, 02:13 AM   #7
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What kills me is when an e-book costs more than the printed version. E-book have zero printing and shipment costs, so how do they justify charging more for it? It's like they are price-gouging their e-book costumers.
They justify it because there are many who value an ebook more than a paper book, despite the costs of production. You need to convince the ebook buyers to stop being suckers. So, give up the fight already.
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Old 07-21-2018, 02:18 AM   #8
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Quote:
Originally Posted by Derf View Post
Why didn't Amazon be like Apple and Google and provide a platform for writers to publish their ebooks for $1 and get $0.75 royalty on every sale? It just doesn't make sense to me.
Umm... they did. Kindle Direct Publishing.
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Old 07-21-2018, 05:03 AM   #9
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You have two sides of the equation, one side is the reader, the other side is the writer. Authors have to eat and pay the bills too. If they can't make money at it, they will eventually stop writing.
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Old 07-21-2018, 05:21 AM   #10
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There are many things I enjoy far less than the experience of reading a good book that I am willing to pay $14+ dollars for.
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Old 07-21-2018, 06:49 AM   #11
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Originally Posted by Derf View Post
guess I am just wondering why content consumption, for entertainment purposes, in a digital age, at least for for music, movies, and apps evolved to a cheap, impulse buy price range. But books, in the digital format, still command a premium price?
It depends how you buy. If you buy a new release at full price, it's quite expensive. And that's because the volumes are a lot lower than for music and films.

But if you're prepared to wait for special offers, and only occasionally buy full price, you can get ebooks at very reasonable prices. My average purchase price this year is just £1.66. And that's not counting the 10 freebies that I picked up.
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Old 07-21-2018, 07:01 AM   #12
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I buy mostly "backlist" ebooks from Amazon UK, and on average pay between half and two thirds the price of the equivalent paperback, which seems reasonable enough to me. Eg nearly all of Dick Francis' ebooks are £3.99, compared to £7.99 for the paperback, so the ebook is half the price of the paperback.

If you wait a year or two after the initial release of a book (and goodness knows my "TBR" list is long enough to make that no hardship), the ebook price generally falls significantly.
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Old 07-21-2018, 08:57 AM   #13
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E-book have zero printing and shipment costs,
Strange as it might seem, that is not entirely true. Amazon charges the publisher a delivery fee on ebooks, based on the size of the ebook file.
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Old 07-21-2018, 09:40 AM   #14
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Digital books are worth more to me. Instant deliver, built in dictionary, multiple readers can read the same book at the same time, font size control, line spacing control, hundreds of books on one device, etc. etc.

Paperbacks for $2 mean nothing to me, I can't read them, and I don't want to store them, dust them, move them, etc.
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Old 07-21-2018, 10:55 AM   #15
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Originally Posted by Deskisamess View Post
Digital books are worth more to me. Instant deliver, built in dictionary, multiple readers can read the same book at the same time, font size control, line spacing control, hundreds of books on one device, etc. etc.

Paperbacks for $2 mean nothing to me, I can't read them, and I don't want to store them, dust them, move them, etc.
This. And there are a few authors I am willing to pay extra to read. L. E. Modesitt Jr. is one such. If I think the price is worth the extra I will buy. Most though I wait for the price to drop, as Harry T. does.
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