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Let’s define the term “value” as “a fair equivalent in money for something sold.”
Let’s define “devalue” as “to lessen the worth off something sold.”
So does a $1.99 price point for ebooks constitute their value? Or does that price devalue the work?
In a capitalist economy, under the rules of supply and demand, things cost money to produce, and their price is dictated by how many things are produced and how many people want to buy them.
An item usually costs a determined amount to create (which tends to go down as more items are produced), and then wholesalers and retailers sell this item for what the market will bear, trying to make a profit.
A few years ago, when the Nintendo Wii was a hot item and hard to find, people who were able to get Wiis sold them on eBay for more than double the $199 list price. The Wii’s value was higher, because demand was higher.
Now you can buy used Wii’s for less than $100. There is a big enough supply for everyone, so the price comes down.
So how do ebooks fit into this?
For the moment, let’s ignore the hard work the author has put into writing the book.
To bring an ebook to market, a book needs to be edited, proofread, put into a proper layout and format, and given cover art and a product description.
These costs can fluctuate. But they are one-time costs.
Once an ebook is created, it can be reproduced indefinitely for free. There are no printing costs or shipping costs. Distributing ebooks to readers costs about 5 cents per download.
