Amazon says $9.99 e-books will boost revenue, including for Hachette

July 30, 2014

Amazon.com believes that pricing ebooks at US$9.99 will boost sales by over 74 percent as the books are highly price-elastic.If customers would buy 100,000 copies of a particular ebook at $14.99, then they would buy 174,000 copies of the same ebook at $9.99, boosting total revenue to $1.7 million from about $1.5 million if the book is sold at $14.99, Amazon said in a post Tuesday.The company said its estimates of the price-elasticity of ebooks were based on repeated measurements across many titles.To read this article in full or to leave a comment, please click here

Link: http://www.pcworld.com/article/2459580/amazon-says-999-ebooks-will-boost-revenue-including-for-hachette.html#tk.rss_all