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07-23-03, 01:57 PM

price has pretty much nothing to do with the supplier's cost, except that the price is guaranteed to be more.

The cost of the materials in a paperback is probably like 50 cents, while materials for hardcovers probably cost $3.00, give or take. actually both of those [totally uninformed] estimates might be high come to think of it.

anyway, assuming that the difference in cost is just $2.50, it's pretty clear that the retail price isn't strongly based on cost when the paperback goes for $10 and the hardcover for $25.

the materials cost is part of it, but what you're really paying for is extra durabilty and the more authoritative quality of the hardcover. in most cases you're also paying to have the text sooner, since generally speaking hardcovers come out before paperback editions, so that distorts the price a bit too.

anyway when you deduct the cost of the cost of materials and labor from the book prices, im sure there's a good hefty income margin left for the author and everybody else, and that's mostly what you're paying for.

i agree that ebooks should be cheaper, but the reason ebook prices typically match the list price is because they're selling us the ability to read the book on our PPCs, which the retailers and publishers apparently think nullifies any detraction of value due to not having a material book.

anyway some ebook prices are falling a little bit as there seem to be more sales (ebooks.com), but yes the list prices are pretty stagnant (and EXPENSIVE).

there's also the issue of ebooks possibly getting hacked and distributed online like mp3s and everything else, so the publishers are probably trying to milk us as much as possible until they're sure that ebooks are safe.

*waits for 30-yr veteran book publisher to come along and put above speculation out of its misery.*

This is just high school economics. the supplier will sell at the price at which revenue is maximized. cost is irrelevant, except as I already said, in the case where cost is more than income, because then no one will sell. there is no obligation to be "nice" or "fair" to consumers. if the price is high then it's because people will buy at that price and the subsequent income is more than the income the sellers might get if they sold at a lower price. if the price is low it's because the seller makes more money that way than if the price is high. welcome to capitalism.

i doubt ebooks are that profitable to begin with, even with such high prices, because the market for ebooks is so small right now. i mean, how many people own a PPC or other compatible handheld? when there are more of us prospective ebook buyers, the industry will be come more profitable, and more sellers will come in to try and make a fortune for themselves...when that happens prices will start to fall because of the competition.

07-23-03, 01:57 PM	#7 (permalink)
Astounded EEG Guest Posts: n/a	price has pretty much nothing to do with the supplier's cost, except that the price is guaranteed to be more. The cost of the materials in a paperback is probably like 50 cents, while materials for hardcovers probably cost $3.00, give or take. actually both of those [totally uninformed] estimates might be high come to think of it. anyway, assuming that the difference in cost is just $2.50, it's pretty clear that the retail price isn't strongly based on cost when the paperback goes for $10 and the hardcover for $25. the materials cost is part of it, but what you're really paying for is extra durabilty and the more authoritative quality of the hardcover. in most cases you're also paying to have the text sooner, since generally speaking hardcovers come out before paperback editions, so that distorts the price a bit too. anyway when you deduct the cost of the cost of materials and labor from the book prices, im sure there's a good hefty income margin left for the author and everybody else, and that's mostly what you're paying for. i agree that ebooks should be cheaper, but the reason ebook prices typically match the list price is because they're selling us the ability to read the book on our PPCs, which the retailers and publishers apparently think nullifies any detraction of value due to not having a material book. anyway some ebook prices are falling a little bit as there seem to be more sales (ebooks.com), but yes the list prices are pretty stagnant (and EXPENSIVE). there's also the issue of ebooks possibly getting hacked and distributed online like mp3s and everything else, so the publishers are probably trying to milk us as much as possible until they're sure that ebooks are safe. waits for 30-yr veteran book publisher to come along and put above speculation out of its misery. This is just high school economics. the supplier will sell at the price at which revenue is maximized. cost is irrelevant, except as I already said, in the case where cost is more than income, because then no one will sell. there is no obligation to be "nice" or "fair" to consumers. if the price is high then it's because people will buy at that price and the subsequent income is more than the income the sellers might get if they sold at a lower price. if the price is low it's because the seller makes more money that way than if the price is high. welcome to capitalism. i doubt ebooks are that profitable to begin with, even with such high prices, because the market for ebooks is so small right now. i mean, how many people own a PPC or other compatible handheld? when there are more of us prospective ebook buyers, the industry will be come more profitable, and more sellers will come in to try and make a fortune for themselves...when that happens prices will start to fall because of the competition. Last edited by Astounded EEG; 07-23-03 at 02:13 PM.