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I feel like and old curmudgeon.
Side edit: In what kind of strange world does the 2nd edition of an eBook still fetch $32 while the 3rd edition is $36?
Suppose publishers were to maintain profit margins and reduce prices by about 90%, as you suggest. I posit that their additional sales from lower prices wouldn't compensate for the profit margin drop because their books would hit market saturation first.
Copying ebooks cost no money at all
Can you please tell me where do I get unlimited storage/bandwith for free?Well, sure, in the world where the only costs that sales price needed to cover were the marginal costs of the current copy, and not some share of the fixed costs of the content.
> Dead Tree books were heavily dependent on material and inventory costs
"Were"? Physical books are still around, you know. Also, those costs are partially marketing costs -- having the book printed and out on the shelf in a bookstore is a form of marketing. While they may not have the printing and inventory costs of physical books, ebooks definitely have marketing costs and, because of the low barriers to entry in the market compared to the market for physical books, arguably have more competing noise that their marketing is trying to be heard over. There's a cost of dealing with it, and the sales price of the books has to pay for it for selling the books to be a profitable business.
Meh, poor justification. A physical book is not really a form of marketing, there are tons of books sitting on bookshops shelves without ever being touched or opened by anyone. Only when you do an actual marketing campaign you get a prominent display with large amounts of your book in visible areas.
Ebooks have marketing costs but you can target the potential customer much more accurately online than in the shop. Plus, there are tons of mechanisms to get your book reviewed and rated by peers, to have a full site to explain the contents in way more details than you could ever expect in an actual store. Ebook advertising is probably not cheap, but it still is nowhere near justifying the large margin they create on the selling price.
It's a market ripe for disruption.
Go back to reddit, kid.
The one-hour-old account says to the two year old account.
http://archive.constantcontact.com/fs172/1101335703814/archi...
If anyone else is interested in the book, there's more information at http://computationbook.com/.
[1]: http://www.reddit.com/r/programming/comments/1isawq/understa...
Also does anyone know why these 50% discount offers are limited to ebooks only?
Comparing the prices of a book on oreilly[1] and bookdepository.co.uk[2] seems to suggest a print book has about 50%(just a guess) margin while the ebooks sells for almost 100% margin once it is produced. So knocking the prices of ebook down to 50% to drive sales would make sense. Thanks again,
[1]http://shop.oreilly.com/product/9780596529321.do
[2]http://www.bookdepository.co.uk/Programming-Collective-Intel... I assumed that these guys buy the book for 20 dollars and sell for 20 euros and make 25-30% profit. Great site btw with free worldwide shipping although delivery takes anywhere from 1 to 3 weeks.
O'Reilly makes more on e-book sales directly through their on-line store then they do on print. However, every e-book they sell via Amazon, their margins are very, very different. Here's a rough guide for a $40 book:
* O'Reilly E-Book Online Store: Approx 99% margin or $39.60
* O'Reilly Store selling print book (bulk print discount assumed): 95% margin or $38.00
* Amazon selling print book (bulk print discount assumed): Approx 90% margin or $36.00
* Amazon selling kindle e-book: 35% margin or $14.00 (minus the Amazon processing fee so it's actually worse)
Odds are the bulk of O'Reilly e-book sales are probably done on Amazon, where the margin is AWFUL. The constant huge sales by O'Reilly are a way to recoup the painful margins insisted upon by Amazon.
Yeah, Amazon makes boatloads off of kindle book sales.
Is that really the kind of margins they operate at or is that a typo?
But yes, the average print costs for a single-color book per unit are in the 2-4 dollar range (that is, manufacturing alone, no design, marketing, editing).
And how would it be possible for Amazon to "keep their lights on" selling physical books at 40% off list price, if they pay O'Reilly $36 for a $40 book? Amazon buys from O'Reilly and most other pubs at 60% off, non-returnable. So the math for the publishers' take from Amazon on physical books looks like this:
[list price] * [.4] - [print costs / overhead] - [author royalty]
There is a catch though.. if I find the book a good asset, then I make sure to buy it, but otherwise it just doesn't make sense to gamble $20+ on a book that will be outdated in a year, unlike literature.
https://play.google.com/store/apps/developer?id=O%27Reilly+M...
There's almost always a sale, and for eBooks, the sale price is usually not much cheaper than Amazon.com's (or other sellers) "everyday" price. Only suckers pay full-price for their eBooks.