Strategically Speaking: How Will E-books Impact Your Bottom Line?
Revenues
Revenue is another word for sales and, in the book publishers' dictionary, there are three major components:
1. Gross Sales. Revenue per unit will likely decline as market pressure and dramatically lower production and operating costs—due to the elimination of the obvious costs associated with the print text, such as paper, printing, binding and components, as well as the value of unsold inventory (also known as obsolescence costs)—put pressure on publishers to reduce suggested retail prices to reflect the lower cost of doing business. Speculation is that the impact on suggested retail prices will likely vary by product type, with the academic and professional business having the strongest prospects for maintaining current price levels, or at least mitigating the pressure to discount.