A Retailer’s Take on Pricing

April 2010
by Michael Tamblyn

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A Retailer’s Take on Pricing

by Michael Tamblyn

In the early months of 2010, price seemed to be the only thing that publishers or retailers could think about as they contemplated the most significant shift in the business model since the introduction of returns in the 1930s. Price was foremost in everyone’s mind when the focus was on the positive and negative effects of Amazon’s $9.99 price for e-books. It was predominant again as major publishers and Apple came to terms about “the agency model” and publisher-set prices.

From a book retailer’s perspective, I see a few things publishers might keep in mind while wrestling with pricing in the e-book era.

The Current State of Pricing

Under the current model, we spend a great deal of time and margin turning publisher-provided e-book prices into prices that consumers are willing to pay.

Here is what we at Kobo get from publishers right now.

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