This whole issue of how ebooks are priced, what they’re worth to consumers, and how to make money off of them is actually pretty complicated. It’s also fascinating, at least to someone like me; for the first 18 months after I bought a Kindle I demanded that no publisher ever go above the $10 mark. (I’ve since softened my stance somewhat for new releases, although personally I don’t buy ebooks over $10 regardless.)
Two of the best explanations I’ve found come from published writers who have an obvious interest in what Amazon and publishers end up doing:
Read “Amazon, Macmillan: an outsider’s guide to the fight” by Charles Stross
Read “Why my books are no longer for sale via Amazon” by Tobias Buckell
Bonus! Read “Kindle Numbers: Traditional Publishing Vs. Self Publishing” by Joe Konrath for an alternate take on earning money from ebooks if you’re a midlist writer.
Set aside 10-15 minutes and read these two (or three) guys for some great insights, for example on Amazon’s reasons for holding to the $10 price point (hint: it’s not really for our benefit), on how much it costs to publish a high quality ebook, and on how to price more efficiently to take advantage of what different customers are actually willing to pay (hardcore fans are usually willing to give more support to their favorite authors).
(Photo: kretyen)
[...] This post originally appeared on Kindlerama. [...]
If Macmillan is hellbent on forcing this pricing on it’s customers, then I will be forced to forego Macmillan books in the future unless they are reasonably priced. Unlike some, I will not give them bad reviews, because reviews should be based on content, not price. I will attempt to hit Macmillan where they will most feel it: in the pocketbook and I suggest that others do the same.
Before the Kindle came into my life, I either made do with the library or waited until the cheaper paperback came out. There is no book that I must read so urgently that I can’t wait a few months. However, I agree with most in that e-books should not cost as much as their paper counterparts. These days, the book is already in an electronic format before it goes to the printer. The cost to format it as pdf, ePub or Mobi are minimal. The publisher incurs no more costs whether one copy or three million copies are sold. Anything past the initial formatting costs is 100% profit.
“The future of publishing” is not fueling this, John Sargent”s greed is what is fueling this. Well, to quote Henry Blodget (Silicon Alley Insider Jan 31, 2010): “Hey john Sargent, CEO of Macmillan Books, Screw You!”
For the record, here are all the subsidiaries of Macmillan Books:
Farrar, Straus and Giroux
FSG Hardcovers
FSG Paperbacks
Hill & Wang
Faber & Faber
First Second
Henry Holt & Co.
Henry Holt Hardcovers
Henry Holt Paperbacks
Metropolitan Books
Times Books
Macmillan Audio
Behind the Wheel
Nature Publishing Group
Palgrave Macmillan
Picador
Quick and Dirty Tips
Scientific American
St. Martin’s Press
Minotaur Books
Thomas Dunne Books
Tor/Forge
Tor Books
Forge Books
Orb Books
Tor/Seven Seas