17 August 10 | Chad W. Post

Today’s feature article at Publishing Perspectives is an interview with Rafi Mohammed about pricing, specifically about the “1% windfall” (increase prices by 1% make $$$$) and “dynamic pricing” for books. Here are a couple choice excerpts:

PP: Author Cory Doctorow has framed this debate as price elasticity versus price discrimination, with Amazon believing that lower prices create more demand and publishers holding on to the belief that differing products released over time maximizes profit. Does this properly characterize the actions these companies have taken?

RM: I disagree with Cory on both accounts. On the Amazon side, price elasticity is about choosing the right price to make the most profit. Amazon has been choosing to sell e-books at a loss for some time. That decision indicates to me a different strategy. Could it be about the profitability of selling devices and taking a loss on the content? Maybe it is about capturing market share while the e-reader market in its infancy and creating lock-in with consumers?

On the publisher side, price discrimination doesn’t exactly describe the choices they are making either. Price discrimination implies that prices fall over time as perceived value of the product falls and the choice by several publishers to create a second window for e-books, their most profitable product, after the release of the hardcover, doesn’t match up. There are again other motives at play. Windowing e-books protects hardcover sales and the retailers that depend on them.

PP: Digital distribution creates a variety of new opportunities for how products can be priced including the price of free. What sort of experimentation should publishers be considering?

Dynamic pricing is the biggest opportunity for publishers. For example, if a new release catches on, the price of the book should be increased. I am not suggesting doubling the price, but adding one or two dollars to the retail price creates a huge impact on the profitability of that title. Hospitality managers change the price of the rooms at their hotels constants to match current demand. Publishers should consider the same.

Yeah, I’ll bet that would be a breeze. And that readers would totally love watching prices fluctuate based on how many times they see someone reading a book on the subway. You could join a book club and pay $2 more for a title than you would’ve had said book club never existed. Dynamic pricing would be a lot simpler with ebooks, especially those sold directly from publisher to reader, but I get a headache just thinking about implementing something like this with print books, bookstores, and wholesalers with constantly fluctuating prices. And looking to the hospitality industry as an example of what publishers should do made me vomit a little bit in my mouth. Next thing you know we’ll all be aping the airline industry and charging extra for the cover or page numbers or some such thing . . .


Comments are disabled for this article.
....
All Days Are Night
All Days Are Night by Peter Stamm
Reviewed by Lori Feathers

As presaged by its title, contradiction is the theme of Peter Stamm’s novel, All Days Are Night. Gillian, a well-known television personality, remains unknowable to herself. And Hubert, a frustrated artist and Gillian’s lover, creates art through the process of. . .

Read More >

The Seven Good Years
The Seven Good Years by Etgar Keret
Reviewed by Vincent Francone

It’s a rare and wonderful book that begins and ends with violence and humor. At the start of Etgar Keret’s The Seven Good Years, Keret is in a hospital waiting for the birth of his first child while nurses, in. . .

Read More >

Human Acts
Human Acts by Han Kang
Reviewed by J.C. Sutcliffe

Last year, Han Kang’s The Vegetarian was an unexpected critical hit. Now, it’s just been published in the U.S. and has already received a great deal of positive critical attention. The Vegetarian was a bold book to attempt as an. . .

Read More >

Nowhere to Be Found
Nowhere to Be Found by Bae Suah
Reviewed by Pierce Alquist

It’s been almost a year since the publication of Nowhere to Be Found by Bae Suah, but despite being included on the 2015 PEN Translation award longlist, and some pretty vocal support from key indie presses, the book has. . .

Read More >

La paz de los vencidos
La paz de los vencidos by Jorge Eduardo Benavides
Reviewed by Brendan Riley

Jorge Eduardo Benavides’ novel La paz de los vencidos (The Peace of the Defeated) takes the form of a diary written by a nameless Peruvian thirty-something intellectual slumming it in Santa Cruz de Tenerife in Spain’s Canary Islands. Recently relocated. . .

Read More >

Souffles-Anfas: A Critical Anthology
Souffles-Anfas: A Critical Anthology by Various
Reviewed by Emma Ramadan

Anyone with any interest at all in contemporary Moroccan writing must start with Souffles. A cultural and political journal, Souffles (the French word for “breaths”) was founded in 1966 by Abdellatif Laâbi and Mostafa Nissabouri. Run by a group of. . .

Read More >

Berlin
Berlin by Aleš Šteger
Reviewed by Vincent Francone

Randall Jarrell once argued a point that I will now paraphrase and, in doing so, over-simplify: As a culture, we need book criticism, not book reviews. I sort of agree, but let’s not get into all of that. Having finished. . .

Read More >

The Gun
The Gun by Fuminori Nakamura
Reviewed by Will Eells

Like any good potboiler worth its salt, Fuminori Nakamura’s The Gun wastes no time setting up its premise: “Last night, I found a gun. Or you could say I stole it, I’m not really sure. I’ve never seen something so. . .

Read More >

This Place Holds No Fear
This Place Holds No Fear by Monika Held
Reviewed by Lori Feathers

Heiner Resseck, the protagonist in Monika Held’s thought-provoking, first novel, This Place Holds No Fear, intentionally re-lives his past every hour of every day. His memories are his treasures, more dear than the present or future. What wonderful past eclipses. . .

Read More >

The Room
The Room by Jonas Karlsson
Reviewed by Peter Biello

If you’ve ever worked in a corporate office, you’ve likely heard the phrase, “Perception is reality.” To Björn, the office worker who narrates Jonas Karlsson’s novel The Room, the reality is simple: there’s a door near the bathroom that leads. . .

Read More >