Wednesday, May 18, 2011

PublishAmerica e-book pricing

I have been arguing with PublishAmerica for a couple of weeks now to lower their prices, especially for Kindle/e-books.  This is the response I get each time I asked them to lower the price.  Exact same response each time!
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Dear Richard Raker:

There is no reason whatsoever why e-books should be cheaper than printed books. If there is, then someone ought to explain it to us. E-books come to the customer with a great advantage: the instant gratification of immediate downloading, and no shipping or handling charges. E-books cannot be damaged in transport, they don't harm the environment (no dead trees, no exhaust emissions from trucks and planes before the book is delivered on your doorstep), and they can't be borrowed and not returned.

In the market place, the customer should have equal options to choose from. PublishAmerica offers a book in various formats, at a pricing that does justice to the value of the book. If the customer wants a paper format, we deliver. If they want an electronic format, we deliver too. The difference between the first option and the second should be the shipping expense, and nothing more. The fact that the publisher saves on printing is offset by providing the significant comfort bonus of delivering the book instantly. If the customer doesn't want that extra comfort, or doesn't want to pay for it, they should buy the paper product. We don't charge extra for the printing.

We are well aware that when e-books were first launched a decade ago, to capture a still non-existing market pricing was kept artificially low, very low, at a net loss to all traditional publishers. Now the market is there, fueled by Kindle and Nook sales, and everyone can start behaving normally again. The costs to acquire, produce, publish and market a book stay the same, regardless of the format in which it is sold. Therefore the time has arrived for normal margins to be included in e-book pricing. Publishing is for profit, and not for publishers to compete against themselves by undervaluing their e-books.

Authors should embrace regular pricing. It doubles their royalties. Those who don't embrace it, effectively root for large numbers of publishing companies to go under in the ongoing digital revolution. As Publishers Weekly wrote recently, "A key for valuing publishers in the future will be their ability to generate the same level of cash flow from the sale of digital products as they do for print." Those who don't, will perish. PublishAmerica has no such intention.

Thank you,

PublishAmerica Support
support@publishamerica.com

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