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DenisePW
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Re: Newest Price Point $14.99 & up


ABthree wrote:

 

 Aside from consumer anger or government intervention, there's no corresponding pressure on Jobs and his collaborators to change anything, ever.

And that's my point in a nutshell.  Government intervention won't happen without consumer anger to prompt it.  And consumer anger has a number of expressions, including failure to purchase AND notifying the seller as to why the purchase won't happen.

 

 

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sub_rosa
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Re: Newest Price Point $14.99 & up

I think complaining about the Agency 5 is a lost art.  : )

 

Time for a revival.


Don't buy from Random House, Macmillan, or Penguin until the agency model is COMPLETELY dead.
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Defiance
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Re: Newest Price Point $14.99 & up

Hardcover Edition and another retailer - here I come.

 

B&N"s price for Vince Flynn's new release is $15.11 for a hardcover - that you can lend as often as you like or even resell - vs. $14.99 for the B&N eBook that you might (never a certainty) be able to lend only once.

 

I feel I was roped into buying my Nook with promises of great savings only to find those savings disappear, once the company and the publishers saw the eBook market growing.  The facts are there.  It costs considerably less to produce and distribute an eBook.  What is happening now is a Bait and Switch tactic that should not be encouraged or supported.

 

I'm going to show my displeasure by by-passing the eBook and, for a double hit, purchase the hardcover edition at a nearby warehouse store, where the price may even be lower than the eBook.

 

If more of us took our business elsewhere B&N might exert their power to get us a better deal.

 

Retailers and publishers will listen to us only if and when we make a significant dent in their bottom line.

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DenisePW
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Re: Newest Price Point $14.99 & up

We have to keep repeating that we will not buy ebooks at these artificially priced fixed prices.  One of the reasons I bought a nook is that I am a voracious reader--5-7 books a week.  At the 9.99 price point, the $5 or so I was saving per book would have paid for my nook within a 3-4 month period. In the first weeks I purchased my nook, I bought probably a dozen or more books. As soon as the Agency 5 started the price fixing, setting the prices almost the same as hardcover or more, the savings disappeared.  So, instead of purchasing 5-7 books a week, I only buy 2-3 per month, getting the rest from the library or other free sources. 

 

I will not purchase at these prices. And we have to keep telling retailers this, so that they can use it to resist the Agency 5 price fixing.

 

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bklvr896
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Re: Newest Price Point $14.99 & up

 


Defiance wrote:

Hardcover Edition and another retailer - here I come.

 

B&N"s price for Vince Flynn's new release is $15.11 for a hardcover - that you can lend as often as you like or even resell - vs. $14.99 for the B&N eBook that you might (never a certainty) be able to lend only once.

 

This one annoys me, I wrote to the publisher but never heard back.  The problem is that the retailers are allowed to discount the HC, which they do, but not the eBook.  That's where you get this type of pricing.

 

I feel I was roped into buying my Nook with promises of great savings only to find those savings disappear, once the company and the publishers saw the eBook market growing.  The facts are there.  It costs considerably less to produce and distribute an eBook.  What is happening now is a Bait and Switch tactic that should not be encouraged or supported.

 

This argument has been discussed many times, and the production costs are not the significant cost of producing any type of book.  A NYT article put it at about 12.5%.  The cost for the book is the editing, marketing, royalties and business overhead costs, which are the same, regardless of the format of the book.  Not that I'm agreeing with the prices.  

 

I'm going to show my displeasure by by-passing the eBook and, for a double hit, purchase the hardcover edition at a nearby warehouse store, where the price may even be lower than the eBook.

 

The publisher will have still gotten their money, regardless of where you purchase it.  They may get somewhat less, depending on the contract they have with the Warehouse store, but what you pay for really doesn't impact what the publisher gets.  The only way the publisher doesn't get any money is if you buy it used.

 

If more of us took our business elsewhere B&N might exert their power to get us a better deal.

 

Amazon (who is much bigger and probably has more influence) tried this when all this first started, with Penguin.  Penguin called them on it and for a month, Kindle owners couldn't purchase any new Penguin releases.  With in a month, Amazon caved.

 

Retailers and publishers will listen to us only if and when we make a significant dent in their bottom line.

 

True, but I would also bet that some of the smaller retailers are ok with the Agency model because it levels the playing field.  Amazon can afford to sell the books at a loss, they can just add the $3.00 or so to some other product, like a TV.  The smaller retailers don't have that option and they can't continually sell items at a loss.


 

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RHWright
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Re: Newest Price Point $14.99 & up

 


flyingtoastr wrote:

Once again, I point out that every retailer is happier with the evil Agency 5 model, outside of the loss-leading Amazon. They have the option here to actually make money instead of losing $3 off of every new release ebook purchase.


 

And this is the heart of the problem I have with many of the complaints that eBook pricing is too high.

 

As much as the Agency 5 model is striving for a price point that is, IMO, artificially high, the landscape when Amazon ruled the roost set the price point artificially low.

 

Used to getting loss-leading pricing from Amazon, many consumers see no problem with pricing that would mean no one would ever make a profit on an eBook and would in fact lose money on every transaction.

 

It doesn't take an economic genius to see that if eBooks perpetually lose money they will eventually be dropped altogether by the industry.

 

Those two cents thrown in, I will say that as consumers, we need to take actions beyond simply not buying books from the Agency 5. These repeated discussions are a good step, as is writing B&N and the other eBook retailers you patronize. Write the publishers.

 

Write your state and local consumer agencies. Write state and local government officials, including the Attorney General of your state if they're the ones who have jurisdiction over price fixing and consumer cases.

 

On a national level, contact your elected representatives. Contact the Federal Trade Commission and/or the Department of Justice.

 

I don't want to see us go back to the days where there was essentially only one name in the eBook retail game—Amazon—because the scope of their business allows them to offset the losses. In the long run, a monopoly is good for no one.

 

But the the Agency 5 definitely need to address the flaws in their current retail price maintenance scheme. Right now, they seem to be scrambling for maximum profits while the eBook "fad" is hot, waiting for a return to the status quo of DTB.

 

They need to create a strategy for future growth in a shifting paradigm.

1) Stay profitable

2) Keep consumers happy

3) Keep competition and reasonable consumer choices viable in the marketplace

 

Seems simple, but if I could crack that nut, I'd be working for the publishers instead of merely writing for a living.

 

Just my 2 cents.

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very-simple
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Re: Newest Price Point $14.99 & up

 


RHWright wrote:

 

....

And this is the heart of the problem I have with many of the complaints that eBook pricing is too high.

 

As much as the Agency 5 model is striving for a price point that is, IMO, artificially high, the landscape when Amazon ruled the roost set the price point artificially low.

 

Used to getting loss-leading pricing from Amazon, many consumers see no problem with pricing that would mean no one would ever make a profit on an eBook and would in fact lose money on every transaction.

 

It doesn't take an economic genius to see that if eBooks perpetually lose money they will eventually be dropped altogether by the industry.

 

.....


RHWright - 

 

to take this one step further, given that this is still a new/emerging market, I would argue that no one actually knows (on a market level, not on an individual level) what price is actually "too high" - as in, at what point will publishers raise prices to a point where they begin to see diminishing returns.  

 

Not that I enjoy paying higher prices (and liberally borrow ebooks from the library or wait until paperback-ajacent price drops where possible to avoid it), but I think the publishers almost HAVE to raise prices to a level that is unreasonable in order to figure out where this ceiling is.  

 

I think, in a year or two, this will shake itself out into something that is (for most people) a reasonable balance, but until then, we're going to see some weird pricing going on.

 

Like I said.  I do my part to fight against too-high prices by trying to not buy books when I think they're too expensive.  Unfortunately, "too expensive" for me is not a specific number, but rather a formula that also includes how much (and how soon) I want to read the book and alternative availability (i.e., library).

Doug_Pardee
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Market pricing of e-books

[ Edited ]

very-simple wrote:

 

no one actually knows (on a market level, not on an individual level) what price is actually "too high" - as in, at what point will publishers raise prices to a point where they begin to see diminishing returns.  


Hang onto your pocketbooks, though, because it's going to be a rough ride.

 

Despite the widespread complaints that the e-book of Ken Follett's Fall of Giants is outrageously priced at $19.99, it's the #1 best-selling e-book in the Historical Fiction category right now at both Amazon and B&N. Among all e-books, Fall of Giants is #12 at Amazon and #14 at B&N (excluding free e-books).

 

It's going to be darned hard to convince Penguin that they should've priced it lower. They're raking in a fair amount of money on that title at that price point. At the same time, many of those consumers who aren't willing to pay $19.99 for the e-book are either buying the hardcover or will buy the e-book later when the price drops, so Penguin's not really losing there, either.

 

I suspect (just personal speculation) that this is why we're seeing these "early buyer premiums" of about $2 on many big-name e-books. The publishers put out the e-books at the premium price and wait for sales to start to taper off, then drop the price to the "normal" level.

 

By the way, the #2 best-selling Historical Fiction e-book here at B&N is Danielle Steel's Legacy.  That e-book had been priced at $13.61 since its release on September 28, but has just dropped to $9.99. In this case, the early buyer premium was over $3.50. But this isn't an Agency Model e-book—it's from Random House. And Amazon's pricing was, and is, the same as B&N's for this title (Sony's still at $13.61). So it's not just the publishers who are asking higher prices for titles that still have "that new release smell".