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	<title>Comments on: Kindle Financials and Economics &#8211; Does this make sense?</title>
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	<description>Kindle Review, Kindle Fire Review, New Kindle Review, Kindle 4 Review</description>
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		<title>By: mycareerwizard</title>
		<link>http://ireaderreview.com/2008/01/24/kindle-financials-economics-does-this-make-sense/#comment-17</link>
		<dc:creator><![CDATA[mycareerwizard]]></dc:creator>
		<pubDate>Sun, 27 Jan 2008 21:13:20 +0000</pubDate>
		<guid isPermaLink="false">http://thekindle.wordpress.com/2008/01/24/kindle-financials-economics-does-this-make-sense/#comment-17</guid>
		<description><![CDATA[There is nothing called &quot;price difference that ought to be&quot;. At best you can talk of cost difference, which is also misleading because costs are a function of volumes. Price is a function of what market can bear. 
In this particular case, I wouldn&#039;t expect e-books to be significantly cheaper. A large part of a books costs would really be author fees and marketing costs. The only way to reduce costs significantly is therefore to sell a lot more of them. I wouldn&#039;t expect Kindle to _drive_ sales for most titles, it would certainly add to them.]]></description>
		<content:encoded><![CDATA[<p>There is nothing called &#8220;price difference that ought to be&#8221;. At best you can talk of cost difference, which is also misleading because costs are a function of volumes. Price is a function of what market can bear.<br />
In this particular case, I wouldn&#8217;t expect e-books to be significantly cheaper. A large part of a books costs would really be author fees and marketing costs. The only way to reduce costs significantly is therefore to sell a lot more of them. I wouldn&#8217;t expect Kindle to _drive_ sales for most titles, it would certainly add to them.</p>
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