Comment Re:Dear Amazon (Score 1) 237
I'm on the publisher side and I think there are some bits you're missing about this. First of all, I work in the poetry and academic spaces, where a print run of a thousand is a solid seller. We see 40% of retail cost in the actual printing, and easily another 10% for shipping. Now, you can easily object that we do much higher quality paper (acid free, thick) than the average paperback, and also have a lot of diagrams and photo inserts and crap that drive up cost. Fair enough. But your experience is also pretty atypical--paperbacks don't wholesale for $20 or retail for $50, so printing and shipping costs are a much larger relative share.
The other side of it though is that publishers frequently eat an enormous number of bookstore returns, frequently eat the interest between when they pay to print it and the bookstore gets around to selling it to someone else and actually paying the publisher for it, and often pay bookstores for prominent shelf placement. Those things can easily amount to 20-40% of the retail of a book and obviously aren't relevant for ebooks. So 20% for printing and 20% for logistics should equal a solid 40% off.
The reason it doesn't is that goods are, as a general rule, sold on a market basis rather than a cost basis. People who read ebooks are already shelling out for a Kindle, so they're probably a market segment which is getting more consumer surplus to begin with, and should be segmented by the pricing model in a more expensive slot. Last minute airline tickets don't cost more because the user is a bigger chunk of the fuel price, after all...