In theongoing spatbetween Amazon and Hachette overpricing , Amazon has nowcalled for Hachette to simply cut its vitamin E - book prices — a move which , it claim , will turn down consumer prices on digital rubric and provide writer with a larger payroll check at the same time .
https://gizmodo.com/when-amazon-plays-dirty-you-lose-1580596374
Ina web log berth publish yesterday , the Amazon Books Team explained that Hachette ’s demands are presently “ unjustifiably high for an e - book . ” They went on toexplain why :
With an atomic number 99 - book , there ’s no impression , no over - printing , no motive to prefigure , no yield , no suffer sale due to out - of - stock , no warehousing price , no exile costs , and there is no secondary market place — tocopherol - books can not be resold as used books . E - books can be and should be less expensive .
More than that , they allow for some figures to back their point , too — pointing out that e - booksare highly monetary value - flexible :
This means that when the price survive up , customers purchase much less . We ’ve measure the damage elasticity of e - books from duplicate measurements across many titles . For every copy an Es - book would sell at $ 14.99 , it would sell 1.74 copies if priced at $ 9.99 . So , for example , if customers would corrupt 100,000 copies of a finical due east - book at $ 14.99 , then customers would buy 174,000 copies of that same e - record book at $ 9.99 . entire receipts at $ 14.99 would be $ 1,499,000 . Total revenue at $ 9.99 is $ 1,738,000 .
In other words — if Amazon ’s figures are accurate — at the low toll , the publisher ’s full receipts increase by 16 percent , generator receive 16 percent more in their payroll check , and client pay 33 percent less . “ At $ 9.99 , even though the client is paying less , the total pie is prominent and there is more to deal amongst the parties , ” they write . gain all round , if Amazon is to be believed .
And it feels pretty strongly about the call , too , suggest that it would jubilantly accept 30 percent of digital book revenue — that ’s the same per centum it presently receives from Hachette — if the publishing company dismiss digital prices to $ 9.99 across the circuit board . Of course , Amazon is n’t really propose all this for us , or writers — it ’s doing it to keep its own pockets lined . But it ’s a compelling arguing for all concerned , so it ’ll be interesting to see what Hachette gain of the idea . [ AmazonviaWSJ ]
Image byNoelasunder Creative Commons license .
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