Sarah Hoyt explains why you should be darned careful not to base your business plans on wishful thinking:
Of course ebooks from traditional publishers are a) unreasonably priced (No, really. There is a book I’m dying to get. It’s $17 for ebook. It’s $32 for the hardcover. You know, I have KULL subscription and the indie books aren’t as good as this particular book should be, but it takes a lot of not as good at 9.99 a month to compare to those prices.) b) often stupidly formatted/edited c) even more often on themes/by authors I have no interest in. (Other than Baen, I currently read two other authors. Period. Oh, and one in mystery.)
Or to put it another way, traditional publishers went to war with Amazon to be allowed to price their books astronomically high. Amazon let them. They priced books at same price as hardcover or a little under (a very little.) E-book sales fell, compared to what they were when books were tops 9.99. Um….
Let me see if I can explain this as I would a child: your little friends love and adore your cupcakes. So you decide to set up shop and make a batch in your easy-bake oven, and sell them for ten cents a piece. Since your friends’ on average have an allowance of a dollar a week, you sell out of the whole batch in hours. So you think “Hey, I can make more.” You set the price at a dollar per cupcake. No one buys them. Your conclusion is “My friends no longer like cupcakes and prefer to eat vegetable sticks.”
Would anyone but a two year old buy that narrative? Well, according to publishers this is a perfectly sane thing to say. I mean, if people won’t buy your overpriced ebooks, it must mean they are going back to paper. Happy days are here again. Let’s build warehouses for all those books we’ll be shipping out to the no-longer existent big-chain bookstores! We’ll be able to control what books make it by our push again! We’re rich, rich, I tell you.
But it’s not just publishers. A friend sent me this article, and I scratched my head and frowned at it and said, in my deep thinking way, “Wut?” This is sort of like if you told your mom your friends’ refusal to buy your $1 a piece cupcakes was because they liked celery more and she said “Sounds legit. For your birthday party we’ll have ONLY celery.”