![]() |
#1 | |
Banned
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() Posts: 304
Karma: 6102528
Join Date: Mar 2012
Device: Kindle
|
Publishers Now Offering Agency Pricing 2.0 (big win for Publishers)
http://www.publishersweekly.com/pw/p...-agency-2.html
Quote:
So it is not wholesale anymore but agency pricing without the "most favored clause" that kept retailers profit margin at 30%. Example: Publishers set the price at $15. Retailers will get 30% of this in commission or $4.5 if they choose to offer the book at Publisher Agency Price. Retailers can discount it as much as they like as long as cumulative maximum discount won't go below cost (overall catalog). Publisher set the ebook price at $15. Retailer Sell it at $15 = 30% profit Sell it at $13.5 = 20% profit Sell it at $12 = 10% profit Sell it at $10.5 = 0% profit (at cost) Sell it at $9 = 10% loss Look like this is a big win for publishers since they get to set the price and get 70% of whatever price they set. And with prices being lower, they will sell even more. No wonder MacMillan is joining in with agency pricing 2.0 Last edited by Top100EbooksRank; 12-19-2012 at 05:42 AM. |
|
![]() |
![]() |
![]() |
#2 |
Wizard
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() Posts: 3,108
Karma: 60231510
Join Date: Nov 2011
Location: Australia
Device: Kobo Aura H2O, Kindle Oasis, Huwei Ascend Mate 7
|
And are they all offering these terms? What a coincidence!
|
![]() |
![]() |
Advert | |
|
![]() |
#3 |
Grand Sorcerer
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() Posts: 19,226
Karma: 67780237
Join Date: Jul 2011
Device: none
|
I'm shocked!
|
![]() |
![]() |
![]() |
#4 |
I am what I am
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() Posts: 6,625
Karma: 62235665
Join Date: Sep 2011
Device: iPad3, Voyage
|
So in brief, the publishers are still dictating discounts
![]() |
![]() |
![]() |
![]() |
#5 |
Interested Bystander
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() Posts: 3,726
Karma: 19728152
Join Date: Jun 2008
Device: Note 4, Kobo One
|
The restriction [for the new Agency 2.0 publishers] is only that a retailer cannot take a net loss across all of a publisher's titles. As long as the time window that is measured across isn't too small, that doesn't seem particularly limiting. All it does is stop someone buying market share by running at a loss.
[The MacMillan restrictions are much more onerous.] Isn't this Agency 2.0 essentially what was discussed during the earlier settlement discussions? Last edited by murraypaul; 12-19-2012 at 10:07 AM. |
![]() |
![]() |
Advert | |
|
![]() |
#6 |
Evangelist
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() Posts: 456
Karma: 1044878
Join Date: Apr 2009
Device: Kindle Paperwhite 4
|
|
![]() |
![]() |
![]() |
#7 |
The Grand Mouse 高貴的老鼠
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() Posts: 72,029
Karma: 307903668
Join Date: Jul 2007
Location: Norfolk, England
Device: Kindle Voyage
|
It sounds reasonable to me. Publishers set an RRP and sell to retails at 70% of that price. Not much different to paper books, except that there the publishers sell to retailers at 45% to 55% of the RRP.
The main difference is the "no long-term loss leader". Retailers can't sell at a loss to gain market share over a significant time period. However, efficient retailers can sell at a discount to RRP permanently. |
![]() |
![]() |
![]() |
#8 |
languorous autodidact ✦
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() Posts: 4,235
Karma: 44667380
Join Date: Jun 2010
Location: smiling with the rising sun
Device: onyx boox poke 2 colour, kindle voyage
|
I haven't kept up with all of this in detail, but this sounds like somewhere on the road to a better middle ground for customers, doesn't it?
It seems like this will allow retailers a larger leverage to discount as they see fit, while at the same time help prevent a company from first selling at a loss and then, once the competition is eviscerated, raise prices as they like. |
![]() |
![]() |
![]() |
#9 |
Is that a sandwich?
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() Posts: 8,213
Karma: 101696762
Join Date: Jun 2010
Device: Nook Glowlight Plus
|
We may see larger discounts toward the end of the reporting period. Retailers then will know how much of their accumulated commissions they have to play with.
Currently, I see discounts of well under 30% although it may be difficult to determine as the list prices have changed also. And Kobo and BoB still don't seem to permit promo codes for these settling Agency publishers. |
![]() |
![]() |
![]() |
#10 |
Wizard
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() Posts: 4,896
Karma: 33602910
Join Date: Oct 2010
Device: PocketBook 903 & 360+
|
The 12 month period seems interesting, but I'm not sure if it can be properly implemented. For example, if a book has the set price of $15, a retailer can sell it for 11 months at this price and then have a higher discount and sell it for 1 month at $7.50. But if the loss per book encountered in the discount month exceeds the profit from the previous 11 months, then the retailer is in breach of contract.
|
![]() |
![]() |
![]() |
#11 | ||
Wizard
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() Posts: 4,896
Karma: 33602910
Join Date: Oct 2010
Device: PocketBook 903 & 360+
|
Quote:
Quote:
|
||
![]() |
![]() |
![]() |
#12 | |
Interested Bystander
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() Posts: 3,726
Karma: 19728152
Join Date: Jun 2008
Device: Note 4, Kobo One
|
Quote:
It allows retailers to either have a constant discount, or to run weekly/monthly/yearly promotions. Or just to have random discount days. But they have to balance the books overall. I see it as benefiting retailers who have better control over, and knowledge of, their operations, vs those who are poorly managed. In other words, good for Amazon ![]() |
|
![]() |
![]() |
![]() |
#13 | |
Is that a sandwich?
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() Posts: 8,213
Karma: 101696762
Join Date: Jun 2010
Device: Nook Glowlight Plus
|
Quote:
We're not seeing large discounts now when there is only one 12-month period possible. December 2012 starts one period then January starts the second. Retailers may be waiting to see how sales develop for several months to see how much more they can discount. Or they may do special time limited sales. Daily Deals, weekly highlights, movie-tie ins, etc. In any case. Amazon isn't, as far as I can see, discounting up to their full 30% commission. Maybe they are content matching other retailers. They must have good reasons for their strategy. |
|
![]() |
![]() |
![]() |
#14 | |
Is that a sandwich?
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() Posts: 8,213
Karma: 101696762
Join Date: Jun 2010
Device: Nook Glowlight Plus
|
However, I don't know what this means:
Quote:
|
|
![]() |
![]() |
![]() |
#15 | |
languorous autodidact ✦
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() Posts: 4,235
Karma: 44667380
Join Date: Jun 2010
Location: smiling with the rising sun
Device: onyx boox poke 2 colour, kindle voyage
|
Quote:
That way, they'd be able to automatically stop the discount before the loss per book exceeds profits. |
|
![]() |
![]() |
![]() |
|
![]() |
||||
Thread | Thread Starter | Forum | Replies | Last Post |
Anyone know of a list of non-agency publishers? | myzr | General Discussions | 0 | 02-10-2012 09:58 AM |
Even more confused by Agency Publishers | apesmom | General Discussions | 15 | 07-12-2011 12:35 AM |
Unutterably Silly Amazon's 9.99 Pricing Strategy vs Publishers Pricing Models | poohbear_nc | Lounge | 0 | 04-12-2010 10:32 AM |
Not All Publishers Pyched About Apple's Agency Model | thinkpad | News | 9 | 02-11-2010 12:26 PM |
Publishers offering lower royalties for ebooks | Elfwreck | News | 5 | 11-25-2009 09:50 AM |