Ebooks: Separate And Equal
By Paul Biba
Such is the title of a thoughtful post on Smart Bitches Trashy Books (I just love that title!). SB Sarah discusses the pricing of e-books relative to their p-book counterparts.
Here’s a snippet:
Digital book devotees should be treated like frequent flyer customers, and FictionWise, with that alluring, sexy, and oh-so-confounding MicroPay rebate system, knows it. But publishers and booksellers don’t seem to get that the only creature as loyal as a romance reader is a digital book reader. If publishers and sellers are going to insist on pricing ebooks between paperback and hardback, or if the prices for digital content will continue to shift and slide so widely, at the very least reward me and my dollar for our stubborn devotion. If a publisher knows that I purchase ebooks, I should be able to subscribe to their digital book program to earn points towards future purchases.
February 26th, 2009 at 4:16 pm
I like some of her thoughts, but not others. Its absolutely true that ebook readers are likely to be some of the most reliable readers out there (I have read about 12 books in the last 4 months and I suspect that I am behind the curve for the average ebook reader but have probably read 3 times the number of books in those 4 months than the average person reads in a year). I am not sure that they are always the most loyal customers. Some are, but others will go read the thousands of free ebooks that are available — hopefully legal public domain or creative commons books but unfortunately all too often, from the darknet.
A large part of the problem (imho) is that large numbers of readers perceive the publishers to be attempting to rip them off with ebooks; charging more for ebooks than paperbacks, loading them with consumer unfriendly DRM, etc. Essentially they are setting up the customers as advesaries. It is little wonder that many in fact cease being customers and start becoming adversaries.
My own thoughts on the matter are simple. Even if they hold back a book for a year like they often do for the paper back edition, the ebook edition should cost less than a paper back version. If the paperback version if $7.00, charge $6.00 for the ebook version. Get rid of DRM. And most important, keep it simple. I don’t want to have to deal with micropay rebates, or work to keep the prices down. Just deal with me honestly.
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Bill
February 26th, 2009 at 4:49 pm
Bill–
I understand your points, but I’m not sure I agree about holding back eBooks. I’m willing to bet that more readers would complain about holding books back than they do about pricing–assuming that eBook prices are reduced to paperback levels when the paperbacks come out.
If you think of book pricing not in terms of the media, but in terms of market segmentation–maximizing profit by charging more for those who are desperate for the latest from Danielle Steele or whomever, and then charging a lower price some time down the road to attract those who are less anxious but willing to pay something, then you’ll see that the whole paperback/hardback thing is an artifact. With eBooks, publishers can forget about the games and simply set prices to maximize their returns and (with a great deal of luck) cover their costs.
While I think this model makes a great deal of sense with big-name authors, it makes a lot less sense with unknown authors. After all, the list of people waiting desperately for my latest is certainly not numbered in the millions. That’s why, say, Harlequin mostly goes direct to paperback–again it’s a pricing decision.
As an eBook reader, I prefer not to wait a year for my favorite authors. I also prefer low prices. But I’d rather have the option of high now and low later than nothing now and low later.
Rob Preece
Publisher, http://www.BooksForABuck.com
February 26th, 2009 at 5:33 pm
I agree with Rob, and I would point out that the price drops would (should?) probably occur faster than the hardback to paperback transition. Publishers could watch sales and, if they see declining sales for a few weeks, drop the price. While I believe that publishers should trust their customers, if your book is priced too high for too long (and with near-zero sales) then there is a very real possibility that you’ll lose a few customers to infringement.
Regarding Bill’s comments, I really like Fictionwise’s system. The price is right to start with, I can join the book club for additional discounts, and I receive a small incentive to return to that store. It compares with Best Buy’s rewards program (except that you have to go through the additional step of converting points to gift cards, but they mostly automate that process for you). I far prefer such a system to, say, managing a stack of expiring coupons.
February 26th, 2009 at 6:03 pm
Rob,
I see your point… though I think the basic problem here is value. With the hardback versus paperback system there is a perceived higher value to the hardback (i.e., the hardback looks like it should cost more, and is usually more durable). That doesn’t really exist with ebooks versus hardbacks. I will grant, that perhaps you can get away with charging a higher price for the ebook for a small period of time (say 6 weeks?), to keep the price high for an extended period of time simply comes off as price gouging. Essentially, I suppose, I am suggesting something similar to Baen’s Advanced Readers Copy where ebook readers get to pay a premium for an early look at the book. But ultimately, if I am being asked to pay $25 for an electronic book when I can get it in paperback for less than $10, there is something wrong with the way that Publishers’ pricing models.
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Bill
February 26th, 2009 at 8:47 pm
I’m a fictionwise patron and club member. I’m also very bitter about publishers holding back ebooks weeks, and MONTHS, past the release date of the paperback OR hardcover. Example: Sherrilyn Kenyon’s lastest was released on Feb. 4th. This week it was released on Mobipocket. I have yet to see it at fictionwise where my micropay account can have a crack at it.
Hardback to paperback will, hopefully, become a dead issue as more people switch to e-reading.
Bill, I don’t know if you are behind the curve, or I’m just an addict. I’ve read that many books this week.
Gotta love Stanza and Ereader on my iTouch!