The Kindle Fire was
sold as a loss leader, meaning that it cost more for Amazon to make the things than what they made from selling them.
Not exact matches
With these products, the manufacturers regard the handles or the printers
as loss leaders because the long - term revenue comes from
selling the razor blades and ink cartridges.
Coming out with a de-contented,
loss leader, lure them in Pacifica in a few years after you discontinue the Grand Caravan isn't going to cut it and is only going to hurt your image
as you try to
sell the loaded models.
Where 99 cent novels seem to be the way to go on Kindle, Kobo doesn't use books
as a «
loss leader» — eBooks are the ONLY thing we
sell, and our prime real estate needs to be dedicated to books that we can actually earn money on.
That's a problem for book publishers, considering e-books are the fastest growing segment of the publishing industry — and Amazon has a reputation for driving down the cost of e-books, treating them
as loss leaders as a way to
sell more Kindle devices.
I already touched on the idea of using a free ebook (a short story, a novella, or even a full - length novel)
as a
loss leader, the idea being that you can
sell more of your other books by giving away free samples.
But I don't believe that Amazon can truly
sell ebooks
as a
loss -
leader forever; I'm of the belief that Amazon
sells its cheaper e-ink Kindles at a
loss, too — at some point, something's got ta give.
«Agency pricing» has been, since its inception, nothing more than a means to control the retail price that Amazon, not Apple, can charge for an ebook — a means to break Amazon's strategy of using ebooks
as loss -
leaders to
sell the Amazon Kindle.
Yes, they might make the latest Big Name Author book 99 cents
as a
loss leader — but those books are already
selling well, even in an indie - dominated ebook world like we have right now.
People who had successfully used the KDP program had noted that it was often helpful in the
selling of other works; you will see many authors
sell a novel for.99
as a
loss leader, while their other works are priced much higher.
The slim profit margins of books; the problems of bookstore returns; the quandary of Borders closing and Amazon forever
selling books
as a
loss -
leader; how to make people actually pay for content, and so on... And yet.
(Retailers had always had the freedom to discount
as they saw fit from the publishers» suggested retail prices in the past, and Amazon had in fact been
selling many Kindle titles
as loss leaders.)
So, if Amazon wanted to
sell my «Writers Gone Wild» (from Penguin)
as a «
loss leader» price of $ 5.99, they would not be allowed to unless the publisher agreed to lower the price, and that price would be carried by all the other eBook outlets.
But are they really killing a huge cash cow (from their point of view), or is the whole book -
selling business simply running now
as a
loss leader to get consumers buying * everything * from Amazon?
They use books
as a
loss leader to
sell electronics, bicycles, groceries and hundreds of other products.
BTW:
As Amazon continues to sell huge numbers of titles below cost and uses them as loss leaders to entice sales on other segments of its website, what will be the long - term effect on a thriving and robust literary marketplac
As Amazon continues to
sell huge numbers of titles below cost and uses them
as loss leaders to entice sales on other segments of its website, what will be the long - term effect on a thriving and robust literary marketplac
as loss leaders to entice sales on other segments of its website, what will be the long - term effect on a thriving and robust literary marketplace?
In particular, this lets retailers
sell books for less than they paid,
as loss leaders.
Readers
as loss -
leaders in order to
sell ebooks at a decent price («decent,»
as in retaining publisher and author interest)... I like it!
Yes we know that Hachette and big 5 trad publishers want agency model and Amazon don't want to
selling ebooks
as loss leader forever.
Bulb Replacement Most stores
sell tanks
as «
loss leaders» so they can
sell the other items to make real money.
You can also read more about using prints and smaller originals
as loss leaders here: How to
Sell a $ 10,000 Painting Online.
In fact, using a
loss leader can increase your cash flow
as well
as the number of larger pieces and commissions you're
selling.
Non-grocery tenants aren't faring
as well,
as Wal - Mart and other discounters
sell competing products
as loss -
leaders.