January 27, 2011 - 11:14 am
Was just looking at Where Does the Money Go, via a link from Glenn. Now, I just bought a new 3rd generation Kindle (much more pleasant than my 1st generation one) so I’m tending to buy most books on Kindle when I can.
Well, here’s a screen shot (click to embiggen):
Observe — the Kindle price is $11.99. The print version? $10.42.
As I mentioned elsewhere, Ive got a few books in the Kindle format, but I wont switch the majority of my book-buying there. I simply cannot swallow paying MORE for something that cost LESS to produce and deliver. I dont mind them making a profit, but unless theres a reason I need to book NOW or want it to be ultra-portable, Im not paying the Kindle premium.
Well, having it actually cost more is unusual. On the other hand — I’ve written about this in PJM before — Amazon takes 30 percent of the Kindle price. Usually the royalty to the author is, let’s say, 10 percent. and the cost to the publisher of delivering a Kindle copy is nothing — it’s covered in Amazon’s cut.
Leaving 60 percent margin for the publishers.
They’re mainly interested in not cannibalizing their print market, but that’s not a bad deal wither.
Until someone figures out that they can sell with less margin.
As Charlie says above, for a Kindle edition to cost more is highly unusual… that’s why it was worth reporting on.
Here’s a good example: Bush’s book Decision Points. Kindle edition: $9.99, hardback: $18.89. The Kindle version is approximately half the hardback price.
Did the publisher set the price or Amazon? If the Kindle price is more than the print price, Ill bet you that the publisher set the price. The stupidity of the publishers who are part of the Agency Model have had me shaking my head since I got my Kindle a year ago. I do not pay more than $9.99 for a book, and many times I think awhile when its $9.99. Do I really want it?
However, the publishers have been very very stubborn since the Agency Model was introduced 8 months ago. They do not want to have people pay $9.99, even though theyd sell more books and make MORE profit that way. They want to charge $12.99 or $14.99 and even more. But then, theyd sell less copies and make less profit.
For me, the choice of a Kindle isnt a luxury, its a necessity. I am physically disabled having been born with Cerebral Palsy. I can not hold a regular book without dropping it when I turn a page. Theres about a 90% chance that if I turn the page in a book that I will drop said book. Since I got my Kindle a year ago, I have been able to enjoy reading again. I am a voracious reader. I have over 350 Kindle books. Many are from the free Kindle books listings, but many are not. I have NOT paid more than $9.99 for any book, even though one of my favorite authors, Laurell K. Hamilton, has her books in Kindle format. The newest books, however, are $12.99 and I refuse to pay that much. The only way that the Agency Model will go away, is if people refuse to buy the books that are priced more than $9.99. However, that wont happen. There are always going to be people that will buy books no matter what the price. I just aint one of them.
I am also an Amazon Associate. This means that I have links on my website, for books and when people click on them, I get commissions. This has allowed me to finance my Kindle habit by giving me a $20-50 gift card every month to buy anything from Amazon. I usually spend it on Kindle books.
Publisher set it. That’s actually noted on the web page near the price if it’s an unusual price.
Speaking of Kindles, Charlie, are there any plans to make the Tatler available as a Kindle blog? Or is it already and I havent noticed?