Milestone: Official Website coming soon

We will be changing our web address soon. Do update your bookmarks, though through the old link it is still possible to reach us.

As 2013 draws to an end, BooksAvenue wishes all friends a happy 2014.

Best wishes! ^ ^

 

 

BooksAvenue

Advertisements

Why Are E-books More Expensive Than Printed Books?

Paper, labour, and distribution costs.

E-books are paperless, stored in various digital formats which can be distributed easily. Technically right, probably in some cases, legally wrong due to copyrights and permissions, in particular to Digital Copyright law.

In any case, e-books are easier to store and distribute. This is an undisputed fact. As such, it is a common perception among consumers that e-books should be, and will be cheaper than paperbacks.

Printing machinery, binding materials and sizing, all these are costs for printing books. After which, distributing printed books itself is another major cost, considering all the logistics and planning that goes behind it. Not to mention, storage costs for that printed literature that are not sold, since this is definitely not a JIT (Just-in-time) inventory system.

To many of us, the e-book should cost very little, probably even next to nothing because there is no paper, printing, and shipping involved. All of the costs associated with print, from the printing to the shipping to the distribution to the warehousing to returns, seems to be non-existent for selling e-books. Compared to its counterpart, the cost of a printed book amounts to a mere few dollars per copy, depending on the size of the print run.

Costs of e-books

In this 2009 file photo, the Kindle 2 electronic reader is shown at an Amazon.com news conference in New York. Despite eliminating many costs associated with regular books, e-books are often more expensive than paperbacks.
In this 2009 file photo, the Kindle 2 electronic reader is shown at an Amazon.com news conference in New York. Despite eliminating many costs associated with regular books, e-books are often more expensive than paperbacks. Mark Lennihan/AP/File

Well first off, the high costs of ‘manufacturing’ e-books are not the due to paper, labour and distribution.

E-books are indeed cheaper than physical books. In this Information Technology age, we all know that it is cheaper to produce something virtual. A blog shop website is cheaper, and probably faster considering ripping off and copying an existing website, to produce as compared to replicating a physical retail shop. It is faster and economically cheaper to send a .mp3 file than to physically deliver it to him/her. An essay is easier to edit in its ‘soft’ copy than its ‘hard’ copy. Anyone suggesting otherwise probably has a dog in the fight.

So who got the biggest pie?

Looking at the profits helps to understand this.

From the macro view, the lion’s share of the retail price of a book, whether in digital or physical form, is going to the publisher.[1] Of which, the publishers set the price and for the case of e-books, publishers will receive 70 percent. Publishers took that deal and then imposed it on book sellers like Amazon [2]

E-readers being ripped off?

(Credit: CNET)
(Credit: CNET)

Under the assumption that physical book price is higher than ebook price, that is, $25.00 as the reference price for a physical book, and let’s say the e-book would have and should have sold for $10.00 at Amazon online. However due to different business models ( as explained below), the publisher is demanding for 50% profit of the reference price of $25.00, requiring a profit of $12.50, regardless ebook or physical book.

The table below explains the 2 selling models. [2]

Wholesale model for selling e-book:
Publisher: $12.50 (based on 50 percent of $25.00 of hardcover retail price)
Distributors such as Amazon: Incur a loss $2.50 if it wanted to sell at a listed price of $10.00

Not wanting to incur a loss for Amazon, the business model has to change! Also, since the magnitude of profit is reduced for the publisher (50% of $25.00, compared to 50% of $10), the publisher and distributor agreed that the ratio of profits will increase to 70 – 30, in favour of the publisher.

Thus, under Agency model e-book:
Publisher: $10.50(70 percent of $15.00)
Amazon: $4.50 (30 percent of $15.00)

Publishers control via pricing

The e-book could have sold for $10 but instead, it is now $15.00. As a result, e-booksellers are competing. And if higher prices of e-books slowed down consumers’ adoption of e-books and kept people attached to print, publishers will be happier with that too. Not because they (the publishers) are getting a higher profit ratio (considering shifting from 50% to 70%), most of the tools at the publisher’s disposal for making a book a hit are actually tied to a print world, from buying front-of-the-book store placement to book tours to promote and market the latest title.

So why in the right mind, would a publisher allow an e-book to be cheaper than a printed book in the first place?

Higher profits

In addition, the increased popularity of Apple’s iPad prompted some publishers to shift from the so-called wholesale model, where retailers set prices, to the agency model, where publishers set prices. Since that happened in 2010, prices that consumers pay for e-books have generally risen and Amazon and other online book sellers who discount have been under pressure. [3]

Quoting part of a statement that the late Apple CEO Steve Jobs allegedly made to biographer Walter Isaacson: [3]

We told the publishers, “We’ll go to the agency model, where you set the price, and we get our 30 percent, and yes, the customer pays a little more, but that’s what you want anyway.”

They went to Amazon and said, “You’re going to sign an agency contract or we’re not going to give you the books.”

Go to for more details: http://www.scribd.com/doc/88914382/U-S-v-Apple-et-al-e-book-complaint

Pricing discrepancies

Also, due to the 2 different selling models here; Wholesale and Agency model, publishers selling print books via the wholesale model and e-books via the agency model, at times resulting in a confusing situation of e-books sometimes costing more than their print counterparts.

To further elaborate, with print, Amazon and other booksellers are allowed to charge a price they want. So when booksellers, for instance, discount the print books under the e-book price, publishers will have little control over that. E-books, however, publishers set the price and e-booksellers aren’t allowed to discount. With ebooks, publishers retain the rights to price the ebooks! That is a difference from the first case. Hence this resulted in an inconsistency with the pricing of books on 2 different mediums.

Future of eBooks

For now, eBooks will be more expensive than printed books. Until we challenge it or to voice our opinion, it is highly likely that it will not change.

Ultimately, eBooks do not deteriorate as ‘quickly’ as physical books, you can be assured that the conditions remain pretty much the same. So why are readers paying more for ebooks?

Conclusion

Credit Google Images
Credit Google Images

In short, printed books will still be cheaper than e-books, at least for now. Plus with printed books, it is more convenient to swap books as there is no such thing as DRM (Digital Rights Management) or copyright problems. Until the day comes, printed books will be more affordable and more environmentally friendly, considering the fact that you do not need electricity to read a book at all. Hopefully, one day ebook will soon be cheaper than its counterparts.

 Check out our next article Are E-books Really Cheaper?

Written and compiled by BooksAvenue

17/12/2013

updated 28/06/2014, 14/12/2014, 07/02/17

[1] http://www.csmonitor.com/Business/Saving-Money/2013/0112/Why-do-e-books-cost-so-much

[2] http://news.cnet.com/8301-1023_3-57412587-93/why-e-books-cost-so-much/

[3] http://news.cnet.com/8301-13578_3-57412452-38/doj-announces-three-e-book-settlements-but-not-with-apple/

The Warlock (The Secrets of the Immortal Nicholas Flamel #5) – Michael Scott

The Warlock (The Secrets of the Immortal Nicholas Flamel #5)
The Warlock (The Secrets of the Immortal Nicholas Flamel #5)
The Secrets of the Immortal Nicholas Flamel
The Secrets of the Immortal Nicholas Flamel

In the fifth installment of this bestselling series, the twins of prophesy have been divided, and the end is finally beginning.

With Scatty, Joan of Arc, Saint Germain, Palamedes, and Shakespeare all in Danu Talis, Sophie is on her own with the ever-weakening Nicholas and Perenelle Flamel. She must depend on Niten to help her find an immortal to teach her Earth Magic. The surprise is that she will find her teacher in the most ordinary of places.

A good fantasy story with a modern setting. Great for casual fiction reading.~ BooksAvenue

BooksAvenue price: S$10

(40% Discount)

 

Or buy all 5 books @S$40:

The Alchemyst (The Secrets of the Immortal Nicholas Flamel #1)

The Magician (The Secrets of the Immortal Nicholas Flamel #2)

The Sorceress (The Secrets of the Immortal Nicholas Flamel #3)

The Necromancer (The Secrets of the Immortal Nicholas Flamel #4)

The Warlock (The Secrets of the Immortal Nicholas Flamel #5)

 

With delivery charge of S$3.00 per title,

or self collect at Yishun MRT

PLUS,

  • Free delivery for purchase over S$50
  • Don’t forget to ‘Like’ us on Facebook~! :)

Click here to order

(Opens in a new window)

The Sorceress (The Secrets of the Immortal Nicholas Flamel #3) – Michael Scott

The Sorceress (The Secrets of the Immortal Nicholas Flamel #3)
The Sorceress (The Secrets of the Immortal Nicholas Flamel #3)
The Secrets of the Immortal Nicholas Flamel
The Secrets of the Immortal Nicholas Flamel

Book Three in the New York Times bestselling series.

Nicholas Flamel’s heart almost broke as he watched his beloved Paris crumble before him. The city was destroyed by Dee and Machiavelli, but Flamel played his own role in the destruction. Sophie and Josh Newman show every sign of being the twins of prophecy, and Flamel had to protect them and the pages from the Dark Elders.

But Nicholas grows weaker with each passing day. Perenelle is still trapped in Alcatraz, and now that Scatty has gone missing, the group is without protection. Except for Clarent—the twin sword to Excalibur. But Clarent’s power is unthinkable, its evil making it nearly impossible to use without its darkness seeping into the soul of whoever wields it.

If he hopes to defeat Dee, Nicholas must find an Elder who can teach Josh and Sophie the third elemental magic—Water Magic. The problem? The only one who can do that is Gilgamesh, and he is quite, quite insane.

A good fantasy story with a modern setting. Great for casual fiction reading.~ BooksAvenue

 

BooksAvenue price: S$10

(40% Discount)

 

Or buy all 5 books @S$40:

The Alchemyst (The Secrets of the Immortal Nicholas Flamel #1)

The Magician (The Secrets of the Immortal Nicholas Flamel #2)

The Sorceress (The Secrets of the Immortal Nicholas Flamel #3)

The Necromancer (The Secrets of the Immortal Nicholas Flamel #4)

The Warlock (The Secrets of the Immortal Nicholas Flamel #5)

With delivery charge of S$3.00 per title,

or self collect at Yishun MRT

PLUS,

  • Free delivery for purchase over S$50
  • Don’t forget to ‘Like’ us on Facebook~! :)

Click here to order

(Opens in a new window)

The Magician (The Secrets of the Immortal Nicholas Flamel #2) – Michael Scott

The Magician (The Secrets of the Immortal Nicholas Flamel #2)
The Magician (The Secrets of the Immortal Nicholas Flamel #2)
The Secrets of the Immortal Nicholas Flamel
The Secrets of the Immortal Nicholas Flamel

This is book 2 of the series of The Secrets of the Immortal Nicholas Flamel.

Ashes to ashes…

California:
In the hands of Dr. John Dee and the Dark Elders, the book of Abraham the Mage could mean the destruction of the world as we know it. The most powerful book of all time, it holds the secret of eternal life — a secret more dangerous than any one man should ever possess. And Dee is two pages away from the knowledge that would bring the Dark Elders into ultimate power.

His only obstacle? Josh and Sophie Newman — who are eight thousand miles away.

Paris:
After fleeing Ojai, Nicholas, Sophie, Josh, and Scatty emerge in Paris. The City of Lights. Home to Nicholas Flamel. Only, this homecoming is anything but sweet.

Niccolo Machiavelli, immortal author and celebrated art collector, is working for Dee. He’s in hot pursuit, and time is running out for Nicholas and Perenelle. Every day they spend without the book, they age one year: their magic becomes weaker and their bodies more frail. For Flamel, the Prophecy is growing clearer and clearer. It’s time for Sophie to learn the second elemental magic.

Fire Magic.

And there’s only one man who can teach it to her: Flamel’s old student the Comte de Saint-Germain – alchemist, magician, and rock star.

Josh and Sophie Newman are the world’s only hope. If they don’t turn on each other first.

 

A good fantasy story with a modern setting. Great for casual fiction reading.~ BooksAvenue

 

BooksAvenue price: S$10

(40% Discount)

Or buy all 5 books @S$40:

The Alchemyst (The Secrets of the Immortal Nicholas Flamel #1)

The Magician (The Secrets of the Immortal Nicholas Flamel #2)

The Sorceress (The Secrets of the Immortal Nicholas Flamel #3)

The Necromancer (The Secrets of the Immortal Nicholas Flamel #4)

The Warlock (The Secrets of the Immortal Nicholas Flamel #5)

With delivery charge of S$3.00 per title,

or self collect at Yishun MRT

PLUS,

  • Free delivery for purchase over S$50
  • Don’t forget to ‘Like’ us on Facebook~! :)

Click here to order

(Opens in a new window)

The Alchemyst (The Secrets of the Immortal Nicholas Flamel #1) – Michael Scott

The Alchemyst
The Alchemyst
The Secrets of the Immortal Nicholas Flamel
The Secrets of the Immortal Nicholas Flamel

This is book 1 of the series of The Secrets of the Immortal Nicholas Flamel.

Nicholas Flamel was born in Paris on 28 September 1330. Nearly seven hundred years later, he is acknowledged as the greatest Alchemyst of his day. It is said that he discovered the secret of eternal life. The records show that he died in 1418. But his tomb is empty and Nicholas Flamel lives. The secret of eternal life is hidden within the book he protects – the Book of Abraham the Mage. It’s the most powerful book that has ever existed. In the wrong hands, it will destroy the world. And that’s exactly what Dr. John Dee plans to do when he steals it. Humankind won’t know what’s happening until it’s too late. And if the prophecy is right, Sophie and Josh Newman are the only ones with the power to save the world as we know it. Sometimes legends are true. And Sophie and Josh Newman are about to find themselves in the middle of the greatest legend of all time.

A good fantasy story with a modern setting. Great for casual fiction reading.~ BooksAvenue

 

BooksAvenue price: S$10

(40% Discount)

 

Or buy all 5 books @S$40:

The Alchemyst (The Secrets of the Immortal Nicholas Flamel #1)

The Magician (The Secrets of the Immortal Nicholas Flamel #2)

The Sorceress (The Secrets of the Immortal Nicholas Flamel #3)

The Necromancer (The Secrets of the Immortal Nicholas Flamel #4)

The Warlock (The Secrets of the Immortal Nicholas Flamel #5)

 

With delivery charge of S$3.00 per title,

or self collect at Yishun MRT

PLUS,

  • Free delivery for purchase over S$50
  • Don’t forget to ‘Like’ us on Facebook~! :)

Click here to order

(Opens in a new window)

The Necromancer (The Secrets of the Immortal Nicholas Flamel #5)- Michael Scott

The Necromancer: The Secrets of the Immortal Nicholas Flamel
The Necromancer: The Secrets of the Immortal Nicholas Flamel
The Necromancer: The Secrets of the Immortal Nicholas Flamel
The Necromancer: The Secrets of the Immortal Nicholas Flamel

This is book 4 of the series of The Secrets of the Immortal Nicholas Flamel.

San Francisco:
Josh and Sophie Newman are finally home. And they’re both more confused than ever about their future. Neither of them has mastered the magics they’ll need to protect themselves, they’ve lost Scatty, and they’re still being pursued by Dr. John Dee. Most disturbing of all, however, is that now they must ask themselves, can they trust Nicholas Flamel? Can they trust anyone?

Alcatraz:
Dr. Dee underestimated Perenelle Flamel’s power. Alcatraz could not hold her, Nereus was no match for her, and she was able to align herself with the most unlikely of allies. But she wasn’t the only one being held on the island. Behind the prison’s bars and protective sigils were a menagerie of monsters, and now Machiavelli has come to Alcatraz to loose them on San Francisco.

Perenelle might be powerful, but each day she weakens, and even with Nicholas back at her side, a battle of this size could be too much for her. Nicholas and Perenelle must fight to protect the city, but the effort will probably kill them both.

London:
Having been unable to regain the two final pages of the Codex, Dee has failed his Elder and is now an outlaw.

But the Magician has a plan. With the Codex and the creatures on Alcatraz, he can control the world. All he needs is the help of the Archons. But for his plan to work, he must raise the Mother of the Gods from the dead. For that, he’ll have to train a necromancer.

A good straight forward fantasy story with a modern setting. Great for casual fiction reading.~ BooksAvenue

BooksAvenue price: S$10

(40% Discount)

With delivery charge of S$3.00 per title,

or self collect at Yishun MRT

PLUS,

  • Free delivery for purchase over S$50
  • Don’t forget to ‘Like’ us on Facebook~! :)

Click here to order

(Opens in a new window)