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Is IT driving costs down?

Everywhere you go the answer seems to be Yes. But is it?

For one thing the sheer power of data processing has allowed governments to dictate a million and one new rules in every business which needs massive changes to processes and processing power for businesses to meet, for example in banking those changes costs millions for each bank just to implement. Who pays for that? Not the government who wants all this you can be sure. Now look at your shopping bill, VAT and tax added straight on by computers, Age checks, maximum amounts in a purchase, a million and one stupid legislative changes that are all being forced on the manufacturers and suppliers to meet everything from diversity quotas to enforced purchasing quotas. Most easily circumvented by the public. All this red tape is only made possible by computers.

I’m not so sure that computers are the boon we make them out to be for businesses. Of course, you now cannot do certain businesses without them and many businesses actual get real benefit from them with all the Just In Time delivery and stock control capabilities. Even the smallest business today needs computers to run but at that level it is a valued tool not a burden.

However, this is what made me ask the question. I’m an avid reader, not as much as some though (Ivan), and like to read all different types but exclude biographies, history and romance.

So, I’m online looking at some books and one of them has a Kindle option. To my surprise I find that the Kindle option is £1.10 more than the dead tree version. I was amazed. How can Amazon justify that?

If people are making profits all the way down the line in both versions then we have to think of the supply chain. There are a lot more people in the chain with dead tree books but it works out cheaper? Makes no sense. Someone not in the paper chain is making a killing. So who could it be? Rather than go into the details of what is in the paper chain, mainly because I can’t remember them all and do you count the lumberjacks?, let us instead have a look at who is in the Kindle download chain. Author, publisher, the Kindle production system and finally Amazon. Short and sweet. I would imagine Amazon is also the Kindle production System. The author will probably get the same pittance but the publisher and Amazon seem to be making a killing here. Seems to me they may very well kill the idea of the Ebooks right there.

Oh well. I prefer the dead tree version anyway. It also helps share out the take.

5 comments to Is IT driving costs down?

  • I wondered if you’d mention Ebooks. Call me old-fashioned, but I can’t imagine the day where I’m curled up by the fire cozily with my…Ipad?

  • ivan

    If it was Amazon uk then you are seeing price fixing by the book agents. They set the price not Amazon and it has been referred to the OFT.

    I have often wondered at the pricing of e-books because most publishers either get the books from the author in a set format or run the text file into a standard template to produce the plates used for printing. Either way they have the e-book there and maybe they then add DRM (which most people in the know remove before using). There are a few notable publishers that produce DRM free free e-books e.g. Baen free library, in all the standard e-book formats.

    As an aside I now have my eDGe set up to use both the e-ink and LCD screens to read books and am working on converting as many of my e-books to work on the e-ink because it is a joy to sit on the terrace in the sun and read even if the mountain has another layer of snow dumped on it overnight.

  • Lord T

    Chrystal,

    I don’t know. A smaller system than an iPad wouldn’t be that different from a paperback and you are unlikely to slip and lose the page you are on.

    Ivan,

    Well, sounds like you are already well organised.

    My only concern is that greed will stifle this innovation and something not quite as good will come out and take over.

  • @Lord T

    Thing is ebooks of course need electricity to work don’t they?

    How about the charge running out on your device?

    And if the power goes out for some reason you can read a book by candle light.

    Or worse the device breaks losing all your ebooks (if you dont have them backed up of course).
    At least with a book you have it in physical form.

  • Lord T

    Janina,

    I agree but on the plus side you can get a million books in the same physical space as one real book. Batteries and rechargers mean you just have to pay attention to the charge levels. Backup can be on web services or your own system at home. Exactly the same as a phone.

    Soon, you will not be able to get a new novel in dead tree format.

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