The Price of Amazon 298
An anonymous reader writes "As physical book stores continue to struggle and disappear, the NY Times puts the changing book industry into perspective as a cost of the existence of Amazon. Further, it's a cost that hasn't been fully paid, as other effects of Amazon's ascendancy have yet to be felt. Quoting: 'One consequence of this shift is that soon no one will know what a book's "real" price is. Price will be determined by demand and perhaps by whim. The first seeds of this can be seen in the Justice Department's suit against the leading publishers, who felt that Amazon was pricing their e-books so low that it threatened their viability. The government accused the publishers of colluding to raise prices in an anti-consumer move. Amazon was not a party to the case, but it emerged the big winner.' Economists, publishers, and readers no longer have confidence that a book will cost the same amount this week as it did the last."
Breaking news (Score:5, Interesting)
Economists, publishers, and readers no longer have confidence that a book will cost the same amount this week as it did the last.
Breaking news: prices of goods change based on supply and demand. Film at 11.
Let us all shed a car. (Score:3, Interesting)
The "BuggyWhip" makers morphed into GM. [wikipedia.org]
Re:New technology makes old technology obsolete. (Score:5, Interesting)
Brick and mortar stores are doing just fine killing themselves on the electronics front.
Just a couple weeks ago i wanted a usb cable. Nothing fancy... a to b. 3 foot.
I wanted it now. So i hit all the stores as i was out that day. they either didn't have it. or in the case of staples... it was $34. thirty four fucking dollars for a 3 foot piece of cable. (not even a monster cable)
After a loud 'FUCK THAT'. I went and got it from newegg. took 2 days total. price. $3 Thats even with state sales tax since newegg has a place in my state.
And places like staples are actually wondering why nobody goes there anymore... they really can't figure it out.
Fail on price? Check. Fail on stock? Check. Fail on service? Check. Fail on convience? Check.
If these phsyical stores wan't to stay open. They're going to have to step up to the plate in a big way on one of those points... But so far... nope. nobody has.
And bookstores are the same. Plus they get to compete with ebooks too. Can i bring my reader to their store and walk out with an ebook loaded? Nope. Fail.
Re:Let us all shed a tear... (Score:0, Interesting)
Insanely low prices that are wonderful for consumers, because that's what they want and that's what the free market delivers? Higher purchasing power, ability to buy more books for less money? Higher purchasing power left after purchasing books for other things people want? Higher standard of living because of higher purchasing power? Easier access to all the world's knowledge and thoughts?
I don't know, what has the free market capitalism done for you?
Re:Does this mean anything? (Score:2, Interesting)
Prices of books have in many places been set by price controls and monopolistic practices. Of course, the consequences have been a massive government handout for publishers and making books less available to people who weren't rich. This is particularly true in Europe. Even in a monopoly, prices are set by demand, but they are generally set much higher than in a competitive market.
It's nice to see this system undermined by technology and progress. There is now hope that the cozy and corrupt relationship between publishers and their cronies in government will finally end.
Re:New technology makes old technology obsolete. (Score:3, Interesting)
Re:one word ... (Score:5, Interesting)
amazon wasn't selling below cost. amazon was selling books at low margin.
The thing is regular bookstores have massive overhead, and old publishers where using that to keep thing artificially inflated. Why does an ebook cost more than a regular book?
You have to pay the writer the same, you have to pay the editor the same, you have to give a publisher their same pie, but you no longer have to pay multiple levels of distribution, shipping, printing, storage, inventory costs. that right there is 20-40% of the price of a book.
Re:Does this mean anything? (Score:4, Interesting)
What TFS means is that books will be priced differently for each individual. If the online shop thinks you will pay more then me for a given book they will try to charge you extra, something that physical shops can't do.
This is something physical shops have been doing for AGES, though not as much recently with commodity items.
What's the price of that new car? Sure, ANYBODY can get it for the sticker price, if they're insane. Everybody can also get it for less, and just how much less depends on their negotiating skills and those of the salesman. If you look desperate, expect to pay more.
The same is true in the US medical industry. Look desperate, and you can expect to pay more (don't worry, I'll give you a "discount" since you're paying cash...). I love it when people talk about how much they save by not having insurance, as if the insurance companies pay list price (healthcare list prices are almost as inflated as RIAA math).
The only real difference with something like Amazon is the level of automation - they can give you an experience that looks like Walmart, but in reality is more like Jimmy's Used Cars.