eBooks-publishers still working on the maths as profits fall
At a global level, publishers are still debating about the production costs and pricing of eBooks. An interesting read is the NYT article Math of Publishing meets the eBook.
The article discusses the costs involved in producing printed books vs eBooks and why publishers have to share savings with consumers. However, the concerns about pricing of eBooks remain on top of the publishers list. Publishers don’t want the prices to go low because essentially eBooks translate only to savings in printing and logistics; all other costs remain the same.
The summary of facts presented in the article are:
| Hardcover | eBook |
| Publisher Retail Price: $26 | Suggested Retail Price: $12.99 |
| Publisher Receives: $13 | Publisher Receives: $9.99 |
| Break Up of Production costs | |
| Print, Store, Ship: $3.25 | Nil |
| Design, Editing: 80 cents | 50 cents |
| Marketing : $1 | $78 cents |
| Author receives: $3.9 (@15% | $2.27-3.25 (@ 25% |
| *Publishers Net Profit: $4.5 | $4.46-5.54 |
*editors, managers, rentals to be further deducted
Apparently, there is marginal difference between net profits for publishers if they choose to publish low priced eBooks ( $4.46-5.54/ eBook) instead of printed Books ($4.5/ book ). It is also believed that seventy percent of books published will make no money.
The reality is that eBook pricing is dynamic and will stay low ($12-15) and economies like India and China will be leading markets.
