Huh??

“Amazon sells most Kindle books for $9.99 or less. Publishers say that they generally sell electronic books to Amazon for the same price as physical books, or about 45 percent to 50 percent of the cover price. For a hardcover best seller like Scott McClellan’s “What Happened,” the former press secretary’s account of his years in the Bush White House, that would mean that Amazon appears to be selling the selling the book for about 25 percent below its cost.”

from here

Can someone explain the economics? Or, is it Amazon’s attempt to get the publishers in a corner? At the same time, are the publishers out of their mind?

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Brooding over this…

2 burdening thoughts around business on my mind right now –

A. Will a home delivery model work for a coffee-shop like Cafe Coffee Day/ Barista? Well, lets not forget that before coming to India, McD had never thought of home delivery. And lets not forget that there are companies that have figured out ways of sending ice-cream as home delivery! 🙂

B. Consulting as a profession takes you away from Entrepreneurship. Because you are always thinking about three scenarios – Conservative, Base and Optimistic. Now, show me one person who started a business to make the returns expected on a base scenario!! Unless you really are optimistic about the idea, you won’t get into it! A consultant on the other hand, will train you to cover for the conservative scenario and aim for the base! 

On a different note, Tamal and I were discussing the other day how the idea of a service apartment (an idea we had discussed in 2003, when Service Apartments were not that common) had become a rage (he is staying in a service apartment right now, on his recent assignment) in terms of ease of operations and assured returns! Damn it! We were discussing the worst case scenario even then! 🙂

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