Hi guys. I saw a pingback on
my blog post, and registered here to hopefully shed a little light.
The post you linked to mostly discusses the cost of printing physical books -- which I've read from many reliable sources (including the links at the start of my blog post) accounts for only about 10-15% of the cost of the book.
However, there are many other costs relating to physical books in addition to just printing them, including shipping, distribution, and returns (unsold printed books are destroyed or shipped back to the publishers for a full return!). I've formatted my own e-books, and it does take some time and effort, but e-distribution is undoubtedly a significant savings over print.
What's important to remember here is that e-book file creation/DRM costs are a one-time cost, divided over the number of sales. For best-sellers, this cost trends toward pennies per copy sold. Even for my modest level of sales, those costs are relatively minimal. (For someone who only sells a few copies, the cost is obviously much more substantial per unit sold.) On the other hand, there are additional print costs associated with every unit sold.
My post doesn't really go into detail about how much it costs for marketing, salaries, rent, DRM (which is not required and many people consider counterproductive), etc., because these things vary wildly from publisher to publisher, and because the publishers closely guard this info and do not release it.
I hope that info is helpful to your discussion...
Can you point me towards some sort of info on who this guy is?
You could check the "
About" page linked to on the blog post.

But I'm basically an author who also closely follows e-books and the publishing industry, and blogs about them.