What It Costs To Produce a Printed vs Digital Book

The New York Times takes a look at how much does it actually costs to produce a printed book versus a digital one.

Publishers say consumers exaggerate the savings and have developed unrealistic expectations about how low the prices of e-books can go. Yes, they say, printing costs may vanish, but a raft of expenses that apply to all books, like overhead, marketing and royalties, are still in effect.

Taking a look at the chart below its estimated that a printed book would give publishers $4.05 from which it must pay overhead for editors, cover art designers, office space and electricity before taking a profit. An e-book gives the publisher something ranging from $4.56 to $5.54, before paying overheads.


While it seems the e-book is more profitable, publishers point out that e-books represent only 3 to 5 percent of sales. When e-book sales start to replace some hardcover sales, the publishers say they will still have many of the fixed costs associated with print. In addition publishers recoup many of their costs on paperback editions; something which can't be done with e-books.

Publishers are also concerned that lower e-book prices will drive bookstores out of business and raise book prices to high for people to afford.

“If you want bookstores to stay alive, then you want to slow down this movement to e-books,” said Mike Shatzkin, chief executive of the Idea Logical Company, a consultant to publishers. “The simplest way to slow down e-books is not to make them too cheap.”

Read More