Interesting article on Amazon pricing

tko · Feb 23, 2012

Not sure what I got out of this article, except that I know a lot less than the small amount I thought I knew.

Who sets the pricing of your novel?

http://carlos.bueno.org/2012/02/bots-seized-control.html

"Its possible that the optimal price of Lauren Ipsum is, in fact, ten dollars and seventy-six cents and I should just relax and trust the tattooed hipster who wrote Amazon's pricing algorithm. After all, I no longer have a choice. The price is now determined by the complex interaction of several independent computer programs, most of which don't actually have a copy to sell. But I can't help but think about that old gambler's proverb: “If you can't spot the sucker, it's you.”

"
It's possible that the optimal price of Lauren Ipsum is, in fact, ten dollars and seventy-six cents and I should just relax and trust the tattooed hipster who wrote Amazon's pricing algorithm. After all, I no longer have a choice. The price is now determined by the complex interaction of several independent computer programs, most of which don't actually have a copy to sell.
But I can't help but think about that old gambler's proverb: “If you can't spot the sucker, it's you.”

lite1 · Feb 23, 2012

Interesting computer fantasy becoming reality! I expect that you know the Amazon royalty rules for Kindle https://kdp.amazon.com/self-publishing/help?topicId=A29FL26OKE7R7B which differ under the 70% option and the 35% option when Amazon is choosing to meet a competitors pricing.

The article that you link to has me slightly confused as it mentions Amazon in the post but then the insert of the book at the top is actually on B&N, and then later it shows an Amazon book - both are paperback AND hence my reference at top is inappropriate as that is the royalty game for Kindle. Nonetheless, it seems that writer of article indicates that the price reduction Amazon offered on the paperback did not impact the royalty, hence it seems that the royalty rules for paperback and eBook might have large overlap.

Given that there was so much talk about computers, I assumed that the title was an eBook!!

Old Hack · Feb 23, 2012

The publisher sets the RRP for a novel.

Anyone is then able to buy it from the publisher, at the price the publisher sets, and then resell it for whatever price they want to.

Just because some resellers choose to sell books below the price they paid for it doesn't affect the author, who depends on that first sale--from the publisher--for their royalties.

epublishabook · Mar 19, 2012

Actually, the role of the publisher is setting the price for their books is currently hotly debated, pitching the "agency model" against the "Wholesale model". This article explains the issues very well, much better than i could hope to do.
Yet, they are actually debating what will determine the future of book pricing hence, ultimately, what will be the size of crumbs left for the authors.

Interesting article on Amazon pricing

tko

just thanks fore everything

lite1

Old Hack

Such a nasty woman

epublishabook