Will Bury's Price Elasticity

By training their employees in internet technology, offering their content in multiple formats- printed or on digital demand viable business models could be developed by newspapers and book publishers.

In the technologically driven world, economists take into account the degree of elasticity for both the early adopters and the late adopters. Due to lagged demand and network effects in these markets, firms have to follow certain pricing strategies. We will form an economic analysis on how these topics are related and what type of pricing strategies firms have to follow when these conditions are present.

Roediger tells us how the book stores make even more of a profit by marking up the textbooks by 25% and returning the book that are not sold without any risk of losing money. he explains after the students are done with the books they often attempt to sell the books back to the store and only get 50 to 20% of what the original price is and then sell it for a marked down price that is the original price without the mark up profiting tremendously, and the authors still get nothing. Roeding tells us that it all gets worse because the text book companies send out copies of the book through email to professors and then used text book companies seek out these professors and buy the books from them and print copies without any charge besides paper. the text book companies can only mark up the books in order to recuperate or make new additions that make the old ones obsolete and if they put in other products like CD study guides the store will sell those for an even bigger

Movie studios have gone to great lengths in stopping pirated movies or channels that distribute their movies without consent from the producers. Fair use is another tricky subject and many people are content with snippets of a popular series or are fine with watching an entire visual novel or listening to an book audio instead of purchasing the novel from a store or website. Thus, best cost has become more nuanced and allowed for more tricky approaches to attracting customers with free material that is bundled with priced add on or free material that is kept afloat with volunteer payments or optional payed bonus extras. For example, a studio may create a movie and have the ticket be valid for watching in a theater but also later viewing at home. It dissuades customers from illegally purchasing the movie due to the cost strategy being convenient and flexible to consumer taste. The strategies are different yet today are being utilized and evolving with the pressures of new competition along with customer perception. Knowing how to appeal to a customer's perception of pricing while offering a quality product are the key to sustaining a proper strategy in our changing

Some of the unique aspects of Barnes & Noble’s situation are that the bookseller was once the top competitor bookstore, pushing other small bookstores out of the market. It is currently the only bookstore chain in the nation. Recently with the development of e-readers and e-books Barnes & Noble has struggled to stay afloat. Typically companies can see improvement in business as technology advances but, Barnes & Noble has experienced the opposite effect. The bookstore kept up with the e-book demand and invested in an e-reader, the “Nook”. However because of this exact investment needed to promote the product Barnes & Nobles has incurred losses in 2011. According to the text there is still more profit in printed books that in e-books. “Customers

It’s common knowledge that Barnes & Noble hasn't been stuggling to get its digital act together.A well reknowned New York based national bookstore chain, it made a daring attempt to innovate its Nook hardware and e-book business, but hasn't been able to perform very well and the market savvy that has pushed Amazon's Kindle or even other tablet competitors.It yet has to learn how to play the e-book pricing game and as a result is just getting pummeled.

Today’s society is based on ever changing technology. Not only are there computers, cell phones, and gaming systems, but also Androids, I pads, and E-readers are now available. Computers and other devices such as I pads and Androids offered through Apple, and e-readers such as the Nook offered through a company called Barnes and Noble and the Kindle offered through another company, Amazon, can be used to read electronic books, also known as e-books. The e-books are offered through these companies with the help of publishers in an Oligopoly Market Structure, which is when a few companies and, in this case, publishers offer a product like the e-books to consumers, in an imperfect competition.

The inflation rate: since we will be marketing the eBook in Canada we have to look at the rate of inflation of these countries. High inflation rates usually mean that the economy is doing well because of high demand of goods and services in that country. Thus this factor will help us determine if the can properly market the book in the Canadian market. From Statistics Canada it can be said that current inflation rate is 1.61%, which is a healthy rate of inflation. From this percentage we can say a lot of things about our product. Due the current inflation rate of 1.61 percentage the prices of goods and services will not change drastically. Also since we are going to sell paperbacks it can be said that the cost of production will not change.

Based on the established conjectures, increasing the price of licensed books to $19 will generate the peak revenues for this book type. Likewise, decreasing the retail price of books with expired copyrights to $5 will also yield peak revenues. These rates will impact production levels and necessitate a division of outputs where 25% would be expired licensed books and 75% licensed. These numbers would require further analysis as supply grows.

The seller of digital textbooks will also be saving money over producing hard copies. 32% of the cost allocated to paper, printing and editorial can be completely eliminated along with 22.4% of costs related to bookstore operations and personnel. Bookstores as we know them could become obsolete or transformed into stores that sell tablets, e-readers and software packages on campus. Publishers or sellers will now be able to tap into a more global market with electronic textbooks as the information can be translated into many languages quickly.

Due to multiple external and internal factors, pricing strategy has become one of the main focuses for a ranging scale of businesses. For some small companies, cost leadership from low quality materials and less overheads allow low prices, resulting in competitiveness and survival of their business, in comparison to larger businesses who are able to charge more as they may have better quality products and large finances to allow above the line promotion. Furthermore, their approaches to the market place will differ; businesses who aim to charge less, will market their products at people who can demographically afford the products and understand their goods/service are price and income elastic. In a dissimilar fashion, organisations who look to charge higher, approach marketplaces with strong brands for their loyal customers with the belief the high prices are acceptable. Regarding Jeff Bezos’ quote, the statement ended with “we will be the second”. The Amazon billionaire acknowledges the importance of meeting pricing strategy for consumer needs and desires. Thus, with a clear focus of keeping prices low, Amazon select suitable operations such as being an e-tailer and marketing techniques to stay successful. This essay will critically analyse the comparisons between the different scales of businesses and to which the way they strategically operate, approach the market and the factors that enforce this.

Offers of hardcover and soft cover book deals, in the interim, had dropped about 20 percent in that time. For the year, the AAP said in a report, digital book deals rose 117 percent. In printed books, mass-market soft cover deals took the biggest hit, falling almost 36 percent. Hardcover deals were down 17.5 percent and exchange soft cover deals fell 15.6 percent. In December 2011 alone, digital book deals rose 72 percent. The AAP anticipated solid deals in the initial couple of months of 2012. As the cost of the Kindle, iPad and different tablets and digital book customers decrease, more individuals will buy these electronics and swim in the digital book space. As individuals purchase more e-books and read free e-books they download, they will probably buy less printed books. Hypothesis has emerged that Amazon will one day offer its Kindle, whose most modest model in 2012 was $79, for nothing, profiting exclusively on substance for the gadget. While Apple profits on offers of equipment, for example, its iPad, iPhone and Macintosh PCs, Amazon is more reliant on offers of substance. Actually, in May 2011, Amazon reported its advanced deals surpassed its print deals. As daily papers needed to swing to the Internet to guarantee survival, book distributers are discovering their way through the advanced age. As per an April 2012 story in the Wall Street Journal, Penguin hopes to discharge 50 upgraded e-books this year subsequent to

A spectacular product that a company might be selling can go bad if the product pricing is not done with proper evaluation. With too high a price, the customers will run away and too low a price, the profits will not be substantial. Price setting is a complex task that requires consideration of costs to the budgeting of key demographics.

Bury's pricing strategies, as they are not competition-based, allow him the ability to set the bar in the market regarding price and quality. As Bury's sales have seemingly tapered off in recent months, and his company still remains a dominant presence in the market for digitized books, Bury holds the option of implementing the "high-low" pricing strategy, which would seem

From aspects of price and pricing, researches about price competition and pricing problems of retailers in e-commercial context are quite few. Friberg et al. (2000) established a theoretical model based on prices of traditional stores and online stores, and he empirically tested e-commercial data of books and CDs in Swedish market, and he at last pointed out that online price of Dotcoms is lower than online price of multi-channel retailers. Based on Hotelling model framework, Pan et al. (2002) constructed a price competition game model of Dotcoms and MCRs. In China, Cai and Zhang (2001) applied game theory and information economics theory to constructing price competition under condition that e-commercial retailers and traditional retailers exist at the same time, and proposed some political advices combination e-commercial condition of China at present. Under