Consumers are no longer buying as many hard copy books since digital readers are more convenient to carry around, they also give more privacy since others can’t see what is being read, and the books are much less expensive.
Price is a major factor that consumers look at when deciding to purchase anything, including an e-reader. The fact that e-readers are becoming lower in price and eBooks are much less expensive than traditional books is a dominant factor of their increase in popularity.
The Price of an E-Reader
When e-readers were first released with a high price, many consumers chose not to purchase one, however after companies realized what had occurred because of the price they created models to sell at a much lower price. “Although the first Kindles were relatively expensive at $399, sales took off in late 2008 followed by price-drops and new models. By August 2010 when the Kindle III model was introduced for $139, an almost viral proliferation of the ...view middle of the document...
“With increasing competition in the e-reader sector prices will be driven down over time, and capabilities of devices will increase.” (Ross Duncan, 2010, p. 45) For competing companies to achieve the level of success to compete with the top ranking e-reader companies they need to keep lowering their prices, not only of the e-reader but also try to get the eBooks to the lowest price that they can afford. If a corporation is selling there e-reader at an extremely low price, yet the eBook prices are through the roof consumers will not be purchasing the product.
The Price of EBooks
Many times when purchasing an eBook it is much cheaper than the physical version. There are of course some outliers to this rule, but regularly novels can be more than 50% cheaper in the eBook form then the hard copy form. With the amount of money that is saved by buying eBooks, consumers are able to pay off their e-reader in a short amount of time. Thus making the eBooks the only expense after the e-reader is paid off. As stated beforehand there are always exceptions to the rules, new studies have been showing that many eBooks are being priced extremely high and consumers are unaware of the reasoning behind it. When one think about the price of a book they believe that the paper and binding is what increases the price of the book, when in reality that only accounts for 12% of the books pricing. According to a post on the Android tablet forum “Publishers still have to pay for acquisitions, royalties, editorial development, copyediting, cover and interior design, page composition, cataloguing, sales, marketing, publicity, merchandising, credit, collections, accounting, legal, tax, and the all the usual costs associated with running a publishing house.” (AnimaTechnica)
Price is always going to be a major factor for consumers especially with the entire job loss crisis that are occurring in our society. The price of books has become astronomical, and if e-readers are going to help consumers spend less on educational and pleasure books they will do everything in there power to get what they want or need for the lowest price possible.