E-Reader stores using non-agency books as loss leaders

[EdEddNEddy]

There has been already a big debate happening over the major publishers depending a lot on the non agency books since so-called "Agency model" did not give in much profit to the publications even when the e-book industry was raging. There are many books which are being sold now which are not there in the agency system as well. So normally majority of the books that we buy does fit into these categories

a) new release that's discounted versus the hardcover

b) Back catalog title discounted against a paperback

So this is what I wanted to notify you all. I hope that helps.

[Najjar]

See what I want to say is that E-Book store always makes profit of everything that’s what I know. Since whatever books price if you see are being set up by the publishers so the question of giving a discount does not come into the existence. So if we continue to get books from the ebook store its but obvious that you will be giving the money share to the ebook store people and not the publishers and hence the loss is to the publishers and the publications and no one else.

[PERSPICACITY]

See I think the publishers do sell the ebook to the ebook store at some estimated price they want and now its upon the Ebook store guys whom they want to sell it to. So a lot depends on them that’s what I am saying.

[Su^Raj]

I don’t think so retailer will be benefiting much from the non agency books. Since the retailer have to pay a percentage of the books list price to them. Now still if the retailer is giving further discounts to the customer then he/she will end up facing loss for whatever they have priced. So that’s not done at all.

[EdEddNEddy]

So what do you make out of that. If I pay for the Ebook more than the 50% of its list price then Ebook retailer isn’t losing money at all it seems right? If I pay less than 50% then I would end up in the Loss state is it right?