How important is amazon.com

Subject: Re: How important is amazon.com Fri Jul 04, 2008 3:13 am

That's what economists call "inferior goods"... something that will only sell at a higher price than the economy would normally dictate.

The classic textbook example is aspirin. When ASA came on the market it wouldn't sell at a fair price (which would have been a couple of cents per bottle) so they kicked it up to a buck a bottle or whatever and it took off.

My own classic experience was a knife I was bringing in from India for an outdoor catalog I was running for my usual psycho employer (I can always find 'em). It cost 50 CENTS. A three inch long "buck knife" lockback with stainless steel blade, brass frame and hardwood handle plates.

So my boss priced it at what we call "keystone"...100% markup. We sold like 4 in six months. When the Christmas catalong came out, I just went to the buyer and said, "Forget what Numbnuts says, put it in the computer at $5.95" We sold over 400 in the next cycle.

HOWEVER when something has an established price (such as the amazon price or what's printed on the cover) and you offer a 30% DISCOUNT it's generally good for sales.
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Subject: Re: How important is amazon.com Fri Jul 04, 2008 3:17 am

Another I liked was a marketing study done in New York at the turn of the century, when such things were in their infancy.

The study (run for Macy's or some such department store) concluded that an expensive box of chocolates could be packaged for, say, 15 cents, but a cheaper selection would need packaging costing over a dollar.

The reason: the expensive chocolates were picked up by well-off people to whom they were just a product, some candy for the kids or whatever. But the cheap box probably represented a major purchase for some lower class buyer, probably a gift to a girl. So it needed classy branding, foil, ribbon, etc. to qualify as a gift of the heart.

The whole busines of branding and presentation is complex and however much they study it, it's still much more an art tnan a science.
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Subject: Re: How important is amazon.com Fri Jul 04, 2008 4:30 am

I think that Amazon has just become a status symbol.

Interviewer, "Where can people find your book?"

The answer is always, "Of course, Amazon.com... and other major booksellers..."

I sold more of my own books in three months than Amazon has in three years!

My dad ran a country grocery/hardware store. Local farmers would bring
in their produse as trade. One week in particular we had way too many
bunches of turnip greens that were going to spoil if not sold quickly.
They were priced at ten cents a bunch.

"Watch and learn, son."

He made a sign that said, TURNIP GREENS - 2 FOR A QUARTER

They were all sold within two days.
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Brew
My website:http://www.philwhitley.com
"Let us dare to read, think, speak and write." ~ John Adams, 1765

Subject: Re: How important is amazon.com Fri Jul 04, 2008 4:59 am

I think "it's on amazon" has become the current default for "published".

This is one of the things that has blurred a lot of previous distinctions about self-publishing, for one thing. Who is going to quibble about how large your publisher is or what the arrangements were when "the book is on amazon"?
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Three Star Member Joined : 11 Jan 2008 Posts : 150

If you are talking about online sales, then I think it is very hard to beat Amazon. However, they only make up a small percentage of potential sales for your book - bookstores, signings, events, etc. all can sell many more books then Amazon. But for online sales I have yet to see a venue that could beat it.
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Director: Bauu Institute and Press
Editor: Indigenous People's Issues Today
Publisher: New Great Books Reviewed
Editor: Indigenous Peoples Issues & Resources

Subject: Re: How important is amazon.com Sat Jul 05, 2008 10:23 pm

I know what you're saying, but are you talking about generating sales by being there, or just a handy place to collect the money?
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