Over the weekend, NY Times reporter Motoko Rich published “Math of Publishing Meets the E-Book,” an attempt to calculate the costs of an eBook versus an hardcover book. The article included a chart with this disclaimer: “A composite–and necessarily simplified–look at what it costs to make a book, both in print and digital form. Numbers are based on interviews with several publishers and consultants who work with the publishing industry.”
According to the chart, a $26.00 hardcover book generates about $4.05 of profit before overhead costs (“They include staff salaries, electricity and rent”). At the same time, a $12.99 eBook generates between $4.56 and $5.54 before overhead costs are factored into the equation.
What do you think? Share your thoughts and theories for a future post. Our readers have some passionate thoughts on this topic. In addition, Don Linn wrote: “Saying a book costs “X” is about as accurate as saying people are 27 years old. Varies by publisher, title, other factors.” Peter Kafka disagreed: “Good primer on ebook pricing, + publishers’ (unconvincing) argument for keeping prices up.” Read more at eBookNewser.