Macmillan, one of the “big six” publishers, has clearly communicated to us that, regardless of our viewpoint, they are committed to switching to an agency model and charging $12.99 to $14.99 for e-book versions of bestsellers and most hardcover releases.
We have expressed our strong disagreement and the seriousness of our disagreement by temporarily ceasing the sale of all Macmillan titles. We want you to know that ultimately, however, we will have to capitulate and accept Macmillan’s terms because Macmillan has a monopoly over their own titles, and we will want to offer them to you even at prices we believe are needlessly high for e-books. Amazon customers will at that point decide for themselves whether they believe it’s reasonable to pay $14.99 for a bestselling e-book. We don’t believe that all of the major publishers will take the same route as Macmillan. And we know for sure that many independent presses and self-published authors will see this as an opportunity to provide attractively priced e-books as an alternative.
Kindle is a business for Amazon, and it is also a mission. We never expected it to be easy!
Thank you for being a customer.
Now read this author’s discussion of his revenue stream, how a book’s price affects how much money he makes:
I got quite a shock last week, when I got my bi-annual royalty statement.
Hyperion publishes six titles in my Jack Daniels series. They gave me my ebook figures.
Authors are usually quite secretive about their sales and their royalties.
Me? I’m spilling the beans. Here are my ebook Kindle numbers from Jan 1 to June 31, 2009.
You decide. Me. I’d like to hear how MacMillan justifies a price of $14.99. What’s their cost? Are they making usurious profit? Sell me on that seemingly inflated price and I’ll be OK with it.
Don’t sell me on it and I’ll take my business elsewhere.