Agency Pricing: Reverse Paradigm

Rob Lister · 03-10-2012, 08:01 AM

There are dozens of threads here on agency pricing and the evils/advantages thereof so this may be retread territory.

I was reading the DOJ lawsuit thread and was curious as to how the publishers coordinate their distribution, so I visited the Simon & Schuster site to see if they were selling the books for the same price they "set" at other sites.

I was astounded to find they do not!, at least for the one and only example I choose.

I checked other retailers and found that the Amazon price is, as expected, the B&N price, is the Sony price, etc. But I check iTunes and find:

Ya know, in the real world--the meat world--this is completely bass-ackward. Manufacturers kiss the butt of their largest retailers. They bow and scrape and lick the feet of the megastores, and that includes never undercutting them.

But what is your point, Rob Lister?

I'm not sure I have one other than to share that I suspect there is something more to this than my wee brain can comprehend. I get that they do not 'like' Amazon, but they're treating other retailers the same ... except Apple. What kickback are they getting from Apple?

HansTWN · 03-10-2012, 08:07 AM

Thanks for bringing that to everybody's attention. I am sure tomorrow Amazon will have the same, lower price. The publishers obviously are trying to support "anyone but Amazon". However, this may just be a mistake. I am sure Amazon has a contract that they may not offer the book cheaper anywhere else, as I read Apple has.

JD Gumby · 03-10-2012, 08:51 AM

Agency pricing does NOT mean the price has to be the same everywhere - just that the publisher gets to set the retail price (unlike with paper books where they sell to the book store at, supposedly, about half the MSRP and then the store is free to set whatever price they want), which can easily differ from store to store and region to region (even when the same currency is used).

HansTWN · 03-10-2012, 08:58 AM

Quote:

Originally Posted by JD Gumby

Agency pricing does NOT mean the price has to be the same everywhere - just that the publisher gets to set the retail price (unlike with paper books where they sell to the book store at, supposedly, about half the MSRP and then the store is free to set whatever price they want), which can easily differ from store to store and region to region (even when the same currency is used).

Agency pricing in general, yes.

But back when they instituted agency pricing I remember that I read that both Amazon and Apple had contracts with the publishers that books could not be offered at lower prices anywhere else (at least for the US market). This would mean that the prices at both stores must be the same, of course. I may be mistaken.

Kumabjorn · 03-10-2012, 09:00 AM

@Rob Lister
Where are you located?
The $2 surcharge could be for distribution otuside the US.

Rob Lister · 03-10-2012, 09:03 AM

Quote:

Originally Posted by Kumabjorn

@Rob Lister
Where are you located?
The $2 surcharge could be for distribution otuside the US.

Virgina.

Kumabjorn · 03-10-2012, 09:16 AM

Quote:

Originally Posted by Rob Lister

Virgina.

Ahh, well then it isn't Whispersync. Local sales tax?

Rob Lister · 03-10-2012, 09:39 AM

Quote:

Originally Posted by Kumabjorn

Ahh, well then it isn't Whispersync. Local sales tax?

No. Sales tax, where applicable (and it is not), would not be shown in the list price.

TimW · 03-10-2012, 09:58 AM

Quote:

Originally Posted by Rob Lister

No. Sales tax, where applicable (and it is not), would not be shown in the list price.

It's $14.99 at every US vendor except iTunes and S&S's own site. It's not the first time I've seen weird pricing at iTunes.

elemenoP · 03-10-2012, 11:22 AM

Report it to Amazon and they will drop the price to $12.99. It isn't "supposed" to happen, but sometimes it does.

eP

Rob Lister · 03-11-2012, 09:23 AM

Quote:

Originally Posted by elemenoP

Report it to Amazon and they will drop the price to $12.99. It isn't "supposed" to happen, but sometimes it does.

eP

Why would I 'report it to amazon'? It isn't as if I care what they charge. I would no more buy the book at 14 or 12 than I would at $1.

I'm interested in the agency-pricing process; the inference here is that Apple has some sort of exemption. Also odd is S&S undercutting their retailers (assuming the word 'retailer' applies in an agency relationship).

elemenoP · 03-11-2012, 10:10 AM

But what I'm saying is, I don't think Apple has any exemption. I think that was just a pricing mistake. Do you have any other examples?

eP

emellaich · 03-11-2012, 10:23 AM

It is currently (3/11) $12.99 at amazon. Of course this doesn't answer the OP question and we don't know if this was a price match or just a slow database update on a price change.

03-10-2012, 08:01 AM	#1
Rob Lister Fanatic Posts: 532 Karma: 3293888 Join Date: Oct 2011 Location: Virginia Device: Nook Simple Touch	Agency Pricing: Reverse Paradigm There are dozens of threads here on agency pricing and the evils/advantages thereof so this may be retread territory. I was reading the DOJ lawsuit thread and was curious as to how the publishers coordinate their distribution, so I visited the Simon & Schuster site to see if they were selling the books for the same price they "set" at other sites. I was astounded to find they do not!, at least for the one and only example I choose. I checked other retailers and found that the Amazon price is, as expected, the B&N price, is the Sony price, etc. But I check iTunes and find: Ya know, in the real world--the meat world--this is completely bass-ackward. Manufacturers kiss the butt of their largest retailers. They bow and scrape and lick the feet of the megastores, and that includes never undercutting them. But what is your point, Rob Lister? I'm not sure I have one other than to share that I suspect there is something more to this than my wee brain can comprehend. I get that they do not 'like' Amazon, but they're treating other retailers the same ... except Apple. What kickback are they getting from Apple?

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03-10-2012, 08:07 AM	#2
HansTWN Wizard Posts: 4,538 Karma: 264065402 Join Date: Jun 2009 Location: Taiwan Device: HP Touchpad, Sony Duo 13, Lumia 920, Kobo Aura HD	Thanks for bringing that to everybody's attention. I am sure tomorrow Amazon will have the same, lower price. The publishers obviously are trying to support "anyone but Amazon". However, this may just be a mistake. I am sure Amazon has a contract that they may not offer the book cheaper anywhere else, as I read Apple has.

03-10-2012, 08:51 AM	#3
JD Gumby Cynical Old Curmudgeon Posts: 1,085 Karma: 8495696 Join Date: Jul 2011 Location: Halifax, Canada Device: Kobo Mini, Kobo Arc, HTC Desire C	Agency pricing does NOT mean the price has to be the same everywhere - just that the publisher gets to set the retail price (unlike with paper books where they sell to the book store at, supposedly, about half the MSRP and then the store is free to set whatever price they want), which can easily differ from store to store and region to region (even when the same currency is used).

03-10-2012, 09:00 AM	#5
Kumabjorn Basculocolpic Posts: 4,356 Karma: 20181319 Join Date: Jul 2010 Location: Sweden Device: Kindle 3 WiFi, Kindle 4SO, Kindle for Android, Sony PRS-350 and PRS-T1	@Rob Lister Where are you located? The $2 surcharge could be for distribution otuside the US.

03-10-2012, 11:22 AM	#10
elemenoP Wizard Posts: 1,717 Karma: 3790058 Join Date: Oct 2010 Location: NYC Device: Kindle Paperwhite, Sony 650	Report it to Amazon and they will drop the price to $12.99. It isn't "supposed" to happen, but sometimes it does. eP

03-11-2012, 10:10 AM	#12
elemenoP Wizard Posts: 1,717 Karma: 3790058 Join Date: Oct 2010 Location: NYC Device: Kindle Paperwhite, Sony 650	But what I'm saying is, I don't think Apple has any exemption. I think that was just a pricing mistake. Do you have any other examples? eP

03-11-2012, 10:23 AM	#13
emellaich Wizard Posts: 1,101 Karma: 4388403 Join Date: Oct 2007 Device: Palm>Ebookman>IPaq>Axim>Cybook>Kndl2>IPAD>Kndl3SO>Voyager>Oasis	It is currently (3/11) $12.99 at amazon. Of course this doesn't answer the OP question and we don't know if this was a price match or just a slow database update on a price change.

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