Heh. My company resells software. A one point, we were able to purchase a 3 user license of the software at wholesale for about $10, and a 1 user license for about $15. Very weird. Couldn't figure that one out. We, of course, just kept selling...but bought a lot in advance, because we correctly guessed the price would go back up.
I sorta doubt that distributors lose money on any products, though. Unlike manufacturers, who already have the production equipment, employees, and commitments, and resellers, who use loss leaders, distributors have no real reason to keep distributing something they lose money on. Maybe it happens once in a blue moon, but it's probably very uncommon.
Where I worked in retail this was actually quite common. However it was a completely different industry and in Europe not the states. Generally this was used to either create focus on a product they wanted to sell more of in the future or a new product that they wanted to push to the market.
40% is an entirely normal markup on pretty much everything people buy retail. I have no idea why books would be any different than a pair of scissors or frozen pizzas. Sometimes it's going to one person, sometimes two, but I promise you, almost everything you purchase has about half the price go to some people in the middle somewhere.
That's pretty much what I assume as well. (Note my last paragraph where I actually claim that 15% probably is a higher cut than one can expect in other markets besides books).
And please notice that people in the middle actually moved the thing to you from the factory, either via their trucks, or via UPS. And processed your individual credit card purchase, and handled refunded and exchanges, and rented storefront and/or warehouse space, and paid clerks to sell it to you, etc, etc...
40% is also (at least in other markets than books) just an average. I worked as an assistant manager in retail for several years and the markups vary highly. Some products everybody looses money on, from the producer through the retailer. Some products the retailer looses money on, and everybody else makes money off. Some products the distributor looses money on, and everybody else makes money on. That's just the way the market works. The most important factors for a working chain like this is that every link in the chain makes money at the end of the day, not on every single product.
When you state it as a lump sum of 40% it seems unfair, but if you can do it cheaper, feel free to open your own store.
Also, 15% is not going to the 'producer' of a book. Publishing companies have editors, and they have printers, they are at the least 'co-producing' the book. In fact, if you apply theatre terminology, they would be called the actual 'producers'.
I'm really not sure how unfair 40% seems. It's not unfair if one compares it with other markets. I think the 40% example was Amazon. I don't know enough about how things works with books to know how much work Amazon actually does, but as far as I can tell they are a retailer (and rely a lot on external distributors to do storage). If Amazons only actions are the shipping to end user, credit card handling, promotion and some storage, 40% seems a huge number to me. If they on the other hand actually do printing and storage themselves it might be a bit better.
Yes... Producer was definitely the wrong word. Perhaps "inventor" or "creator" would be more accurate?
To me it seems rather sad that the only way one can survive as an author is to be a "super star". It would please me greatly if more people could earn a fair living authoring books, but it's probably hard. One area I would like to see more focus on is the distribution links, that in our day and age should be possible to work around. I'm hoping for a future where bookstores become local "printers" that print books on demand from the customers, and any publisher (self publishing or through a publishing house) can sell their work through them. This would eliminate not only the huge cost of shipping, storage and handling, but also be more environmental friendly, and everybody would win (except Amazon and the other huge worldwide providers). Combine this with selling online e-books and e-book "kiosk" that support all reading devices at the local "printers" and I think the industry has a bright future for (almost) everybody.
I wouldn't. Simply because I'm not very into the kind of art one hangs on walls, or puts on tables. My do love my library though. To me there is something very special about books on shelves.
But it's all very individual I would think. I like nice cover art for two reasons: It looks good on my shelves (in my opinion), and I like reading a "beautiful" book. Sometimes when I'm just to tired to read I'll just look at the cover of the book until I fall asleep. (This probably makes me weird
Aren't these mutually exclusive. If an author deserves more than 15% but doesn't because the publisher is keeping 85% then yes that is profiteering. Nobody is saying publishers should do work for free but prior to ebooks the lack of an alternative allowed them the ability to profiteer off of others.
No. It seems that I was to vague. My point was that even though the author deserves more than 15%, the whole 85% is not profiteering, although some of it most surely is.
That is starting to change. No reason a publisher can't survive with a smaller split. If they can't then freelance editors and PR companies will kill them off.
Well. Further up somebody presented some numbers where 40% of the cake was taken by the distributer (I have no idea if these numbers are correct or not, but I'll assume they are for now). %40 percent seems quite a huge number, leading me to assume that if anybody is really profiteering here it's the distributors. This really isn't surprising. In a lot of markets one sees distributors and/or retailers doing most of the earning.
I'm in no way trying to defend publishers. I find the way many publishers abuse their power to keep the copyright on works they have no plans of doing anything more with just to avoid giving the author back his ownership of the work horrid. What I'm saying is that when it comes to the actual dividing of the cake, I'm not positive that the publishers are the worst, and that it is important to look at the whole chain not only one end of it.
It would be interesting to know how much of the final retail price the producer gets in other situations. How much does the producer of a cellphone earn of the retail price? The same for computers. The same for cucumbers and coffee beans. I'm rather afraid that doing this comparison would show that 15% actually is a rather large piece of the cake compared to other markets. And again, I'm not defending the fact that authors only get 15%, I'm just saying that this probably is a universal problem in no way limited to books.
So lame. No one gives a crap about cover art. [....]
15% for the author is pure profiteering by the publishers. End of.
Just because you feel that way doesn't make it a universal truth. I personally have many times choosen a more expensive version of a book simply because I favored its cover art (and vice versa a cheaper version because I favored its cover art).
Does the author deserve more than 15%? Most definately. Does that mean that 85% of the price is profiteering? Absolutely not.
it offered unlimited texting, which duplicated core functionality, which of course is listed in black in white the agreement.
Therein lies a great reason to hate Apple. The only reason Apple can get away with this is because they cater to a small crowd that is willing to pay big bucks for flashy equipment while bending over taking anything Apple sends their way. If apple didn't have their small crowd of abusees they would have to cater to a larger crowd and would have been taken down a long time ago, just like Microsoft. How do you think people would react if Microsoft put something in their Windows EULA forbidding you to develop software competing with their own core software? No, you cannot develop a browser for Windows. No you cannot develop an office suite for windows. No you cannot create a text-application for Windows.
People would scream bloody murder and sue them from here to Sunday. But since it's Apple catering to their small crowd of bent over abusees what we hear is "the simple fact is that the majority of apps are rejected because the developer took a chance and ignored the agreement".
I completely agree. And I've always done this (only shortened URLs when I absolutely need to) without even thinking about it before I read your post right now.
I also totally agree about annoying people who abbreviate everything all the time, almost as much as I hate people who use "write" in dialect.
I think the main problem with Twitter is that who ever created Twitter didn't seem to know what they were doing (and still don't - just look at the whole OAuth thing). Twitter could have been a great service if it was done right from the start. Unfortunately they started out with crappy code and even more crappy features, and though they try to fix things now and then they will never get there. This is actually a problem with a whole lot of services on the net nowadays. They don't become popular because they are well made, and they don't become well made because they are popular. Instead everybody "makes due" with what they get, and by the time somebody gets around to make a well made alternative the craze is over, or the original service has gotten so huge that the well made alternative just can't cut it.
Gee, Toto, I don't think we're in Kansas anymore.