What it costs for a best-selling e-book: $12.99

Contrary to popular belief, the costs of creating an e-book and a hardcover edition are similar. About 10 percent of hardcover costs go to printing, binding and shipping. Publishers set a retail price for an e-book, and selling agents such as Amazon.com and Apple receive a flat percentage of that retail price. These estimates are based on sales of 75,000. Expenses for a book include one-time costs such as editing and marketing. Many e-books lose money for publishers; e-books that sell millions of copies offset losses from less popular books. – Andrew Schneider

 

COST TO PUBLISHER $9.09

Author royalties $2.27

Editing/digitizing 0.28

Marketing1.00

Overhead 3.18

Operating profit 2.36

COST TO RETAILER $3.90

Overhead .50

Digital rights management .10

Pre-tax operating profit 3.30

Price to consumer $12.99

 

Washington Post Saturday, February 5, 2011

From here.

 

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