Why do Publishers focus on raising/conserving prices instead of cutting costs or increasing volumes?
Consider the actions Publishers are taking – • Raising eBook prices. • Not releasing eBook versions of books. • Trying to delay eBook releases. • Disabling the Read To Me feature. The underlying attitude is to save the price point of books at any cost. Instead of focusing on the amount of value for money books can provide Publishers are focused on keeping the price point stable. It’s supposedly because books cost a lot more to create than people think. • Paper, Ink, Labor – all the costs are going up. • There are huge risks. • Marketing, Distribution, Returns, Retailers all take a toll. However, here’s a question – Can’t profits also be increased by cutting costs? Publishers haven’t really done anything to cut costs – There are lots of ways to use technology and intelligence to make the creation, publishing, and distribution of books faster, cheaper, and more effective. Surprisingly, Publishers aren’t doing any of that. Publishers aren’t trying for economies of scale either A third way
