The traditional pricing models were relatively simple, only dealing with hardbacks and paperbacks. The models have now become more complex, as there are many more factors to take into consideration (Hall, 2013). The pricing of ebooks is very varied, while some are quite expensive (more than £10), others are free of charge. This is very problematic for publishers as the consumers have now got it into their heads that ebooks should be considerably cheaper than print. This may be cause of Amazon lowering the prices of the books for kindle as it became more popular and cheap ebooks became the norm. Now that prices have gone up, consumers are complaining at having to pay the same for an ebook as a paperback (Marlowe, 2011). For me personally, I don’t mind paying the same, I’m not only paying for the book but also for the fast and easy access I have to it.
This chart compares the average cost and revenue model for a hardcover book and its ebook counterpart. As we can see the publisher takes nearly the same profit from both formats. If we also consider that more costs come out of the publishers take, in the end not much profit is made (Buchanan, 2010). And people want cheaper products? A book doesn’t actually make much, only in particular cases; so for new authors, the demand for cheaper ebooks is a hindrance.
So why pay less for an ebook? A book is a good read at the end of the day, you’re paying for good entertainment, it shouldn’t matter which format it is in.
References
Hall, F. (2013) The Business of Digital Publishing. An Introduction to the digital book and journal industries. USA: Routledge.
Scott Marlowe, 2011. Pricing: ebooks vs Paperbacks. [online] Available at: http://www.scottmarlowe.com/post/A-comparison-of-eBook-prices-vs-paperbacks [Accessed 20 November 2014]
Matt Buchanan, 2010. How Much It Actually Costs to Publish an Ebook vs. a Real Book. Available at: http://gizmodo.com/5482774/how-much-it-actually-costs-to-publish-an-ebook-vs-a-real-book [Accessed 20 November 2014]