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HFQ ebook Pricing - Unconsionable

This fascinating series is a combination of historical seafaring, swashbuckling adventure, and high technological science-fiction. Join us in a discussion!
Re: HFQ ebook Pricing - Unconsionable
Post by khameirsith   » Sat Sep 19, 2015 4:36 am

khameirsith
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Charybdis wrote:
khameirsith wrote:Are there rules on new books? Are royalties a percentage or fixed pricing?

If it's a percentage, then you're saying David only deserves a percentage of 2.99 ebook vs same percentage of hard cover?

The bulk of the profits from a book come at the release of the book. In order for the publisher and author to make money, you'd have to make both equally or similarly priced.

Is it really fair to David that you pay 3 bucks for his latest work?

Remember I am already paying for the Hardback so I am paying Mr Weber's royalty there and I am sure that there is still some royalty in the $2.99 I am paying for the additional eBook.

As for fairness, I am not holding a gun to anyone's head but adding a transaction so that I get both editions at a higher but worthwhile (to me) cost for the combo deal.


You were never in my thoughts. You paid your dues with the hardcover, so what you got a digital copy.
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Re: HFQ ebook Pricing - Unconsionable
Post by khameirsith   » Sat Sep 19, 2015 4:44 am

khameirsith
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Im even more confused. I'm drunk on hot chocolate and serf whiskey and it's late and I just want a snippet.
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Re: HFQ ebook Pricing - Unconsionable
Post by Joat42   » Sat Sep 19, 2015 10:57 am

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I read an article a couple of weeks back that the big publishers are selling less books after they have hiked the prices on books (and especially eBooks).

Found the article: http://www.wsj.com/articles/e-book-sales-weaken-amid-higher-prices-1441307826
Publishers succeeded in preventing Amazon from lowballing prices, but “unfortunately, it may be that consumers aren’t happy with the higher prices,” said Mike Shatzkin, chief executive of publishing consulting firm Idea Logical Co.

Who would have thought that a price hike would mean less sales.. :roll:

---
Jack of all trades and destructive tinkerer.


Anyone who have simple solutions for complex problems is a fool.
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Re: HFQ ebook Pricing - Unconsionable
Post by OrlandoNative   » Sat Sep 19, 2015 2:28 pm

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Joat42 wrote:Who would have thought that a price hike would mean less sales.. :roll:


Probably anyone with an IQ larger than their shoe size in American units?
"Yield to temptation, it may not pass your way again."
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Re: HFQ ebook Pricing - Unconsionable
Post by OrlandoNative   » Sat Sep 19, 2015 2:29 pm

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Mark Time wrote:I wonder how long it will take the big 5 publishers to figure out that their pricing scheme doesn't work.


Probably about the time they file for bankruptcy. :lol:
"Yield to temptation, it may not pass your way again."
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Re: HFQ ebook Pricing - Unconsionable
Post by Olegreyowl   » Sat Sep 19, 2015 2:39 pm

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Joat42 wrote:I read an article a couple of weeks back that the big publishers are selling less books after they have hiked the prices on books (and especially eBooks).

Found the article: http://www.wsj.com/articles/e-book-sales-weaken-amid-higher-prices-1441307826
Publishers succeeded in preventing Amazon from lowballing prices, but “unfortunately, it may be that consumers aren’t happy with the higher prices,” said Mike Shatzkin, chief executive of publishing consulting firm Idea Logical Co.

Who would have thought that a price hike would mean less sales.. :roll:


The problem really stems from Amazons history of undercutting the cost of product (not just ebook/books). They have such a large customer base and they have been balancing on a knife edge of lose money here, make money on this large margin item to make up for it. It has created a false perception that it is cost effective to have these lower prices on everything because the majority of people can't grasp that a huge company such as Amazon would lose money on so many things. "So it must be profitable at that price, right?" If you only sell one type of thing (publisher, books/ebooks) you don't have a something else to make up the money by selling for a profit. And if Amazon controls the only real outlet for your product because they have shut down all the competition in that category you can't even sell your stuff directly without being seen as gouging, when in fact if you look at the margins and profits, you're simply trying to pay the bills.

As I said earlier Amazon is running on less than 1% operating margin. That is walking such a fine line it's nuts. Their P/S ratio is almost 3! The only reason they are making it is the near monolithic faith the consumer/investor has in them that they are and always will be profitable or growing (investors often forgo profit for growth, Haven anyone?). But if anything shakes that faith even a little you'll see a market correction and they will start raising prices back to where they and their suppliers can actually make money on the products.

What about Baen, you say? Baen is smart, and they have created a upwelling of support from their customers and created a community. We buy books from them directly as often as not where they can protect their margins (Amazon undercuts them as well). Even so if you look at Baen's new ebooks you see inexpensive books at 6-8 bucks and you see books 15-20. But we all have a firm belief (because they communicate and support the community in other ways besides selling where-as the other big publishers are seen as simply big publishers) that it's priced in as low they really can (again despite the fact that Amazon is undercutting them by 15-20% on Kindle) so we support them. That's always been Baen's strength. They treat their authors well and the authors tell us that. They treat us well and we tell other customers that. They create an environment of trust and it succeeds.

Google "Amazon Stock is a Bubble" and do some reading. Forbes had a nice article on it last year. It's quite scary actually. If Bezos' baby ever get colic it's really going to hurt the economy.

Oh and one last thought, Sales do not = profit. Margin does. If you break even or lose money on an item it doesn't matter how many you sell.
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Re: HFQ ebook Pricing - Unconsionable
Post by Olegreyowl   » Sat Sep 19, 2015 2:53 pm

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Here's a great example of lower sales = higher profits.


"Coca-Cola has only slightly more than half the revenue of Amazon, yet earns nearly 80 times more profit. Amazon is growing faster, but to produce the same dollars of profit as Coca-Cola, Amazon will need to hit revenue of $1.7 trillion given its current profit margin. That is over three times the size of Wal-Mart, so that is a very big revenue number."

source Forbes May of last year.

DuQuesne plan anyone? :D
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Re: HFQ ebook Pricing - Unconsionable
Post by CRC   » Mon Sep 21, 2015 11:29 am

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I'm not sure who's the bad guy here. Yes, HFQ's pricing is ridiculous compared to an Honorverse novel price on Baen. (BTW, Baen's premium price for an E-ARC is a BRILLIANT idea. If you don't want to pay the premium, you can wait.) But Amazon is giving a lot of author's exposure in the, what I refer to, as the pop-corn SCI fi arena. Just look at all the various authors whose books range from $2.99 to $4.99 and there is a lot of reasonably good material to read. Not at all the depth and quality, although some of Dandridge's work is pretty good, of a Weber or a Ringo, but not bad.

Anyone remember Laser Books? Back in the day (early 70's), paperback Sci-Fi prices were getting ridiculous (approaching, gasp, $3 per book.) Laser books started doing dci-fi at $0.95. I still remember Pournelle's Birth of Fire and the Brandyjack series. Good stories. Not in league with the GREAT stories, but not bad for the price.

Amazon, with the littler known authors, appears to be doing the same thing. In fact I've just now loaded up a bunch of titles to keep me occupied during my upcoming plane flights. (Note to Baen, I've already read everything there, so I have to go somewhere else.)

Bottom line? Will I pay the price for HFQ - absolutely. I just wish Baen had done the deal originally so that I would be re-reading the E-ARC by now...
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