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Robert Sanchez
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Robert Sanchez is now following Matt Sanchez
Feb 25, 2010
The one thing missing from most pricing arguments is the impact of the first-sale doctrine and the secondary market. Consumers are able to resell physical goods (hard and soft cover). The secondary market then allows the consumer to purchase the good at a higher price point, knowing that they can recoup a percentage of that price should they need to sell the work. As it is currently not possible for a consumer to resell most digital commodities (e-books can't be resold short of selling the preloaded e-reader), I would argue that digital commodities should be priced roughly as follows - (cost of hard cover - estimated resale value) = cost of digital version. This lowers the price of the digital commodity to reflect the risk that the consumer is taking. Until a viable secondary market is worked out, the price point should be lower. Publishers are actually not sticking to their "dying model" because they are ignoring the secondary market that supports consumer spending habits. In the digital economy, consumers are assuming more risk when they make a purchase in return for access to materials. Publishers need to recognize that calls for lower price points on digital works reflect the increased risk for the consumer.
Robert Sanchez is now following The Typepad Team
Feb 25, 2010