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Reasonable hypothesis. If you reduce distribution costs for academic materials the price should follow. There's even a diagram in there that shows 32.2% of text
by mustpax 17y ago
Reasonable hypothesis. If you reduce distribution costs for academic materials the price should follow. There's even a diagram in there that shows 32.2% of textbooks prices come from printing costs.
But here's the thing: the full "printing cost" category includes "paper, printing, editorial costs." I'd wager, like most physical media of our day, the manufacturing costs are just a sliver of the actual margin. The value does not come from the grade of plastic on your DVD, it's the content, obviously. In other words, "editorial costs."
These include things like office rent in Manhattan, employee salaries and stuff that's not going to be affected a single bit by the distribution channel. So I wouldn't hold my breath for price wars spurred by the Kindle revolution.
Now, used textbook sales on the other hand, that's a true margin killer.