Wednesday, May 04, 2016

Reports sees the same trend for magazines as eBooks: ending discounts cuts newsstand sales

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It is an incredibly easy concept to understand: discount something and sales may increase. The trick is to balance the need to drive sales, with the need to drive profits (or margins, if you will).

Amazon was saying this back when they were fighting the major book publisher over the price of their eBooks. Amazon wanted a $9.99 price point, but this meant that the price would be substantially below the cover price of many hardbound books.

“Many eBooks are being released at $14.99 and even $19.99,” Amazon said in 2014. “That is unjustifiably high for an eBook. With an eBook, there’s no printing, no over-printing, no need to forecast, no returns, no lost sales due to out-of-stock, no warehousing costs, no transportation costs, and there is no secondary market — eBooks cannot be resold as used books,” Amazon said. “EBooks can be and should be less expensive.”

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