

Getting Orwell Wrong - espadarosa_cor
http://techcrunch.com/2014/08/09/getting-orwell-wrong/

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orionblastar
There exists a sweet spot in prices where if the book sells for less, it sells
more copies and then brings in more revenue.

Amazon's Kindle model charges a percentage of each sale, so it is in their
best interests to price books lower so that they will earn more income. The
Kindle store does not make very much money, in fact Amazon does not make much
money from selling things because they sell them as cheap as they can almost
at cost or in some cases below costs like their Kindle tablets. They try to
make up the selling tablets at a loss by income from Kindle and Amazon Market
Appstore Android app sales.

We've already seen a price war on mobile apps going as low as 99 cents and in
some cases free with in-app purchases or a freemium model. Ebooks are heading
that way as well.

Walmart does this, lower the price and make it up by selling in large numbers.
Get people into their store for the low prices and then sell them more things
when they are in the store. At Amazon a person can buy a Kindle book and then
buy a few more books or go buy some products from the Amazon store or pay for
a Prime membership to watch videos, etc.

