Kobo exec advocates higher prices for AU, NZ

[fjtorres]

From Teleread:
http://www.teleread.com/kobos-mark-l...hing-pitfalls/

One interesting point Lefebvre made regarding price is that, since Kobo is global, it sells in Canada, Australia, New Zealand, the UK, and elsewhere, in addition to the US. And customers in some of those regions—such as Australia and New Zealand—are used to paying more for e-books, so publishers can afford to price their e-books higher there.

Doesn't really need explanation, does it?

[MGlitch]

This doesn't read as him advocating for it, more explaining why prices are higher.

[davidfor]

And it is really just, "charge what the market will bear". Isn't that how all pricing is done?

The other problem for Kobo's pricing in Australia is that the local publisher of the book has a say. When there isn't a local publisher, I don't know what happens.

Having said that, it took me a while to find a book that Kobo is selling at a higher price here than elsewhere. A spot check of books published by Baen, using Google to convert between currencies, the Australian price is slightly better than both the USA and UK prices. Same for the Harry Potter books. Both of these seem to be the same editions. The Jack Reacher books are even more in our favour. And these are different editions fro different publishers. Others work out closer with differences I think that are related to the way that Kobo "round" prices mentioned elsewhere in the article.

When I looked at Stephen King books, the US price is lower. In this case, the publishers and editions are different.

This completely and utterly random and unscientific survey suggests to me that the price here for books from a single worldwide publisher is exchange rate based, but if there is a local publisher, the local publisher is setting the price, or at least influencing it by how much they sell it to Kobo.

[fjtorres]

Originally Posted by MGlitch

This doesn't read as him advocating for it, more explaining why prices are higher.

The article is him telling indie publishers what they're doing wrong.
As in charging aussies the same as americans when they could be charging more because local tradpubs do it.

I just want to see how many agree with that approach.

[darryl]

I posted the following in the Kobo Discounts Discussion Forum.

For those who are interested Mark Lefebvre, Director of Kobo Writing Life, gave a talk at Book Expo America on common digital publishing pitfalls reported on by Chris Meadows at Teleread here:

http://www.teleread.com/kobos-mark-l...hing-pitfalls/

For what it is worth I found the following two quotes interesting:

I later elaborated slightly in regard to another post as follows:

@BearMountainBooks. Maria. Thanks for the information. I'm curious why your boxed sets do so much better on Kobo and by a large margin. I would have thought Amazon should sell more. Do these Box Sets get more prominence on Kobo? It would certainly be nice to know as it may enable you to improve sales on the other sites.

As agency has never been challenged in Australia (and presumably New Zealand also) I took Mark's comments as a simple statement of fact reflecting BPH practices in Australia and New Zealand. I totally agree with Lynx-lynx. I think Australian's are sick to death of this, not only with books but software and all sorts of other items. The attitudes that Lynx-lynx refers to are actually recommenatons to Government by I think the Productivty Commission and a Senate Enquiry notable for grilling Apple and Adobe amongst others on their practices in this regard. One can only hope that Government adopts these recommendations, but based on past experience I am not hopeful.

I found Mark's comments on "optimising" the prices on conversion quite incredible. OPtimising for who? I would rather save the 29 cents in the example given, a price increase of 3.37% for absolutely nothing and likely on top of an exchange rate already incorporating some commissions or other charges. And, believe it or not, I doubt there are any readers who would be dismayed by a price ending in .70 rather than .99. Nonsense of the first order. I wonder what evidence if any is available to support what to me is meaningless drivel. If Kobo recommends the practice, automated or not, presumably it does have something to support its efficacy. To me the practice discriminates against Non-US customers and does not pass the so-called "smell test".

I don't take Mark as actually going so far as to advocate the practice in relation to Australia and New Zealand, but he does come close.

[darryl]

Originally Posted by fjtorres

The article is him telling indie publishers what they're doing wrong.
As in charging aussies the same as americans when they could be charging more because local tradpubs do it.

I just want to see how many agree with that approach.

I saw your comment after my previous post. Whilst I too thought he did not go beyone stating the situation in context it is certainly at least arguable that he was advocating the practice.

If so, I can only suggest that Indies would be far better seeking to emulate Amazon rather than Kobo.

[GeoffR]

I think Kobo is giving the publishers bad advice in this case.

While I understand the short term logic of it: when the paperback edition sells for $7.99 in the USA and $25 in New Zealand, and overseas sources such as Amazon are charging far more for postage than the price of the paper book, then there is room to increase the ebook price and still have it look cheap in comparison to paper.

But I think it generates resentment in readers once they have got past the initial comparison with paper and start comparing ebook prices in other countries, and that will hurt the publisher in the long run.

My advice to publishers would be to set a single global price, just allowing for different tax rates and a small buffer for currency shifts. (Edit: And other local factors, but be fair and use the same method for all countries rather than singling out some for special treatment. See reply to GERGE in post #13)

(Edit: I'm not saying that it is always a bad idea to increase ebook prices, in some cases I think publishers really are setting their price too low, but be fair about it and increase the price everywhere not just in certain countries.)

[GERGE]

Kobo also have lower prices for countries with lower GDP per capita. I recently bought Slow Regard of Silent Things from Kobo, for $4.2 (this day's rate). Kobo USA and Amazon has it for $7.99. It is like this for many books.

Turkey Kobo prices are similar to what printed books cost here. A global price wouldn't really work. Think of Russia, China, India, Africa, Balkans, Turkey... Same prices as USA aren't fair for them.

[meeera]

Originally Posted by GERGE

Kobo also have lower prices for countries with lower GDP per capita. I recently bought Slow Regard of Silent Things from Kobo, for $4.2 (this day's rate). Kobo USA and Amazon has it for $7.99. It is like this for many books.

Turkey Kobo prices are similar to what printed books cost here. A global price wouldn't really work. Think of Russia, China, India, Africa, Balkans, Turkey... Same prices as USA aren't fair for them.

Australia isn't a richer market, it's just a traditionally price-gouged market. Australians are waking up to this and geo-shopping as a result.

[GERGE]

Australia has $50000 GDP per capita, we have $20000 here in Turkey. We don't have same purchasing power as you have when it comes to global pricing. India has much much lower.

[meeera]

Originally Posted by GERGE

Australia has $50000 GDP per capita, we have $20000 here in Turkey. We don't have same purchasing power as you have when it comes to global pricing. India has much much lower.

I am aware of that. We are not richer than the USA, and that differential is what the post is about.

[GERGE]

You are right in that. I was just replying GeoffR that global prices also don't make much sense.

[GeoffR]

Originally Posted by GERGE

You are right in that. I was just replying GeoffR that global prices also don't make much sense.

You are right, so instead of a single final global price, set a single global base price and use the same method of deriving the local price from that. e.g. add local taxes, a mergin to allow for currency volatility, and and adjustment for GDP per capita or average wage or whatever other measure you choose.

If the same method is used forall countries, and readers know what it is, then they might see the price differences between countries as fair.

But New Zealand has lower GDP per capita, lower average wages, is poorer than the USA or UK by any economic measure you choose, so any fair method should result in lower ebook prices in New Zealand than in the USA or UK.

(And to be fair, many of the publishers do currently set their ebook prices lower in New Zealand, especially once you take retailer discounts on ebooks that are agency priced in the USA but discountable in New Zealand into account.)

[darryl]

This is old, old thinking, at least when it comes to digital products. Geographical discrimination whether for purposes of "fairness" or some other justification, are dependent on effective geo-blocking. Given we don't have effective geo-blocking, apathy and/or technical ignorance account for its current preservation. Like it or not, one world price for one world market is the logical conseauence.

[fjtorres]

Originally Posted by GeoffR

But I think it generates resentment in readers once they have got past the initial comparison with paper and start comparing ebook prices in other countries, and that will hurt the publisher in the long run.

As a reader, that would be my thought. eBooks, unlike other products, do not cost any more to distribute across 10,000 miles than across 100. Price discrimination of that sort is already a hot button issue in Australia, from what I've seen of criticism of Apple, Microsoft, and other multinationals and if I were an Indie publisher I'd be leery of getting lumped in with the local publishing cartel. They might get away with it arguing "culture" or "jobs" but as a foreign vendor I wouldn't expect a free pass like them.

I know of at least one Indie publisher who sets his prices the same dollar number across the US, AU, and NZ and doesn't bother to account for currency coversion. The goa for most Indiesl is to get stories read and build a following of satisfied readers.

This publisher would rather give up the 10-12% or whatever the currency conversion discount amounts to than even appear to be discriminating by region.

I wouldn't expect everybody to do that but for Indie publishers there is great risk in following tradpub cartel practices and great value in raising their visibility with low, fair prices. If nothing else, it buys good will.

As I said, I'm curious to see how much support Kobo's position might have.
Maybe people down under are used to price discrimination and won't notice...