CompuServe Thread

#VOTE ON OED PRICE HERE!

5 messages in this thread
#35761From: John FrancisJan 3, 1993 3:55 PM
The reduced-type OED now sells for $295.00; the normal-type version, for $2700. The OED on CD-ROM is in normal-sized type, and has greater functionality than either printed version. Seems to me that in this context, and in the context of reference-book publication in general, $895 is a very fair price–indeed, a bargain. And I intend to pay it Real Soon Now.
#35812From: Richard DayJan 4, 1993 6:38 AM
The price differential between the reduced-type OED and the standard version is pretty much 100 percent a reflection of costs: production and distribution, primarily. In the print version, the reduced-type OED could be considered less functional than the standard because of its small type, or I suppose one could argue the sharp reduction in the number of volumes and their bulk makes the reduced-type version more functional in terms of ease of going from aaa to, say, ggg. In any event, the "functionality" is tightly coupled with the medium. Printed matter will never afford the reader the same speed of access which is possible in an electronic version. But this really has little or nothing to do with the price. Assuming Oxford Umiversity Press starts with the same "base" – the information content of the OED2, properly 'marked up' for typesetting in an SGML or similar environment – the cost of getting that content into printed, bound volumes is dramatically higher than getting it onto a CD-ROM. Distribution and storage costs are also way higher for the paper version. OUP's pricing does not reflect the electronics era – it reflects what is probably a "what the market will bear" consideration. For OUP, "the market" for the OED has traditionally been institutions spending money other than their own and with pretty deep pockets for a "quality" product. As someone else said a while back in this thread, OUP likely has no real incentive to change its pricing policy just now. I agree with many others here the ROM version is "too expensive", but I'll buy it anyway, and so probably will many others. OUP will no doubt miss the opportunity for vastly larger sales quantities, but they probably just don't care … Ric
#35815From: John FrancisJan 4, 1993 7:57 AM
The difference in functionality between the reduced-type and plain-type OEDs is trivial, merely a matter of the user's convenience. The real difference is in the market for each version. OED was smart enough to find a non-institutional market for their product, one that would accept the inconvenience of the small type and the magnifying glass in exchange for the convenience of having the whole work in 2 volumes instead of 20–and, indeed, of having it at all. This after it had essentially saturated the library, institutional, and professional market for its full-sized type edition over several decades, repaying Oxford's investment many times over. They were also smart enough to sell thousands of the reduced type version to book clubs, thus bringing down the per-copy production cost. I agree with you, therefore, that Oxford's pricing is indeed largely based on their idea of what the market will bear–and with the experience of selling the previous CD-ROM of OED1 at a much higher price, they have obviously some objective basis for their idea. And I'm sure their price is designed to maximize sales revenues, not merely sales volume. Why shouldn't it? (I worked as a salesman and editor in book publishing for 15 years, and understand in a general way how these decisions are made.) However, production costs may not be entirely irrelevant. OED2 is new, and the print version can't have sold nearly as many copies as OED1 did. And the one-time production costs such as keyboarding text and setting type, though less than they would have been Before Computers, was doubtless very large and may not have been fully recovered; likewise the up-front cost of compiling and editing OED2 in the first place. I don't know one way or the other, and I'm sure that nobody outside OUP does either, but it seems a reasonable guess. Anyway, you seem to be saying that in the electronics era, "what the market will bear" considerations no longer apply. I'm sure you don't mean that, because of course it's not true.
#36054From: Richard DayJan 6, 1993 6:26 AM
I agree the reduced-type/standard-type OED versions are essentially the same where functionality is concerned. As for the markets – yes, OUP did a nice job of establishing a second market with the reduced-type version, especially the book club sales. >> with the experience of selling the … OED1 at a much higher price, they have obviously some objective basis for their idea … << My feeling is, this is just the point where they're going astray – the OED1, like the "full size" print version, sold mostly to the library and institutional markets – quite a few colleges, for instance, have it mounted on systems accessible by students. Without spending a couple of hours with my calculator, I'd hazard a guess that the price differential between the full size print version and the OED2 ROM is mostly a reflection of costs. I'd further guess that OUP sees the traditional markets for the full-size print version as being the same markets it will sell most of the ROM version into, with both yielding similar per-unit revenue. For better or for worse, OUP is handling a product with mass-market potential as a specialty item: high unit pricing, relatively narrow distribution, minimal publicity. In this approach, production costs, as you say, "may not be entirely irrelevant" – I imagine they are quite relevant, because of the number of units they need to be spread across. I'm sure OUP is happy with the way they're handling the product; as a consumer who will reluctantly pay the ticket, I'm not. As an ex-publisher (21 years as a director of a major, multinational magazine and book publisher), I would handle the CD-ROM quite differently, and would be pretty confident of producing a much better bottom-line yield than the current price/sales strategy will do. You're right, I certainly did not mean to imply that "what the market will bear" considerations no longer apply in the electronics era. It is true they still apply; it is equally true they are a dangerous way to run a business – profitable short term, risky in the long haul. Ric
#36044From: JAN SCHWENKJan 5, 1993 11:49 PM
John, If the price seems fair to you, by all means, pay it. I started this thing with a simple comment that if OUP's objective was to make money, they could probably make a great deal more if they priced it within the reach of a much larger buying public. If it were available for $100, would you think less of it? Rgds Jan