Karen Templeton - Be-Mused Blog

Yet another treatise on e-books

Yesterday, word came down from on high that Harlequin isn’t budging on our royalty rates on their e-book offerings — we get the same rate for them as we do for our print copies. Since the e-books are priced slightly less, we’ve pointed out that, should e-books take off, we’d be losing money. Not much at this point — I think we’re talking about a penny a book. And from the tenor of their missive, I’m gathering it’s not a huge issue in any case. Since I’m due to get my first royalty statement with figures on an e-book, I’ll let you know. Believe me, I’m not expecting to see an unexpected vacation to the Bahamas from my e-book sales.

But here’s the thing: Harlequin says (and I’m only passing along the message, so take this for what it’s worth) that while it would seem logical that production costs for e-books would be less — no paper, no printing costs, no shipping — at this point they’re not. Why? Well, for one thing they have to convert into a whole mess of different formats (which — correct me if I’m wrong — seem to be expanding every day), and then whoever distributes the books for them gets a cut of the cover cost, as well, just as with print books being sold in stores. Add on the promotion costs of trying to entice readers to try the new format, and they insist that — thus far — e-books simply aren’t profitable for them.

Frankly, since I haven’t sold a single e-copy of A HUSBAND’S WATCH on Amazon, I tend to believe them more than not.

It seems to me that e-books are in a major Catch-22 thing, especially for the larger publishers. I know there are plenty of e-publishers who are doing very well (obviously), but it’s still very much a niche market. As the letter from Harlequin stated, the reader has to see some real benefit to buying e-books over print beyond it’s simply being a neat, new thing. For those readers dedicated to their e-readers who love being able to tote along a hundred e-books in the space of a single print book, it probably seems bizarre that more people aren’t embracing e-book technology. But after ten years, it’s still not taking off the way people were sure it would, and I’m not sure — given present constrictions — it’s going to. Not in my career lifetime, at least.

Why? Because the puzzle pieces don’t fit correctly. As long as the prices remain the same for e-books and print, as long as there’s still no inexpensive, universal reader, e-books are going to remain a niche market. But as long as publishers see the e-book market as limited, they’re not going to lower prices since — for major print publishers — e-books aren’t yet profitable. And authors aren’t terribly likely to campaign for lower prices on e-books if their income suffers as a consequence.

And so it goes, round and round and round.

In theory, as an author I couldn’t care less how someone “reads” my book — in print, on an e-reader, on CD, as a Manga graphic novel. In fact, I love knowing that technology continues to expand in all these areas — if there’s a new way to reach a reader, I’m there. But If an e-book price is half that of print, then you have to sell twice as many e-books to compensate — and as long as readers are also balking at the logistics of reading on a computer or hand-held, that’s probably not going to happen. So I’m not seeing a win-win situation here.

Not before I’m carted off to The Home, at least.

6 Responses to “Yet another treatise on e-books”

It’s true that producing an ebook costs a lot more than people might think. I went through a lot to get my PBW challenge free ebook in only 3 formats. And it’s just a good thing that my husband donated the web support, technical stuff, and design work for the cover. There’s a perception that because it’s an electronic file, it doesn’t cost anything (or anything much) to produce. Ha.

Anyway, I do think that as long as you can get a print book at Walmart for the same price as an ebook, most buyers are going to opt for print. Not to mention the difficulties with DRM and the various formats and the expense of ereaders. Ebooks have come a long, long ways but there’s still more progress ahead!

by Charlene on November 1st, 2006 at 8:14 am
I wouldn’t bet your mortgage payment on the sale of e-books (at least ordered through HQ). Since 12M on 11/1, I tried to access its website to order 3 books under its “advanced book” procedure (including BABY STEPS). Around midday on 11/1 finally got through once to order. Now, in spite of trying a total of about 25X (at 9AM, 11/2) it still says “unavailable to access”, a problem I’ve discovered with many months around the lst of the mo.

Personally, I’m not interested in e-books. I love to hold & touch the real printed item & collect those I love for rereading at later times. However, guess, anything that gains new readers is a good idea, but, IMO, don’t think much will come of it in the long run.

by Patricia on November 2nd, 2006 at 10:03 am
Patricia, I’ve noticed that eHar isn’t the most user-friendly website out there. Considering the reportely astronomical cost to set it up/keep it running, I don’t get this.

I have heard, however, that they sell around 100,000 books a month from the site, which ain’t hay. Maybe it’s just overrun on the 1st, when the new books come out???

(And for ordering Baby Steps, BTW.)

by Karen T. on November 2nd, 2006 at 11:58 am
Karen,

You’re welcome. Yeah, I think eHQ’s site does get overwhelmed at the lst of the mo. In addition, w/economy shipping, my books took 3 wks., 2 days to arrive, right after their store lay-down dates. Its website mistress is very responsive & cooperative, & I believe her when she says the company is trying to streamline the shipping process, which she says should be after lst of year. However, last month’s standard shipment was received in less than a week for only $3 additional shipping. So, am staying with that until changes occur. I’m not surprised about your eHQ #s. The advanced shipping is a good lure, &, after receiving shipment, you can also send a check, rather than use your CC # to pay. Several UBSs tell me category is not selling, but, when I am in stores that feature the older releases, that area is overrun, so, I’m not convinced.

by Patricia on November 4th, 2006 at 4:23 pm
Not sure if UBSs sell that many category romances, anyway (and frankly, unless we’re talking older, out of print books, I don’t care if they do!). Generally, category romance sells best in discount and grocery stores, where women tend to toss them into the cart along with the toilet paper and frozen dinners.

And of course, it depends on the line and the area of the country. They tend to sell better in rural areas or small towns, particularly in the South, not so well in big cities.

Me,I don’t care where they sell, or to whom, as long as readers keep buying them!

by Karen T. on November 4th, 2006 at 9:53 pm
Karen,

That info about the category sales is interesting. I know, here in L.A., I hear they are not big sellers.

&, yes, I was talking earlier, OOP books. I am probably one of the few who search in UBSs & library sales & aren’t interested in the newer-released series books at a cheaper price. I always support new books by fave authors, but, I’m always looking for their OOPs. I’d rather support UBSs than buy on the ‘net. I must say almost w/o exception, my fave authors, initially, were discovered through books bought at library sales & UBSs.

by Patricia on November 7th, 2006 at 6:07 pm