giant mag Cheap: According to the NY Post’s Keith Kelly (third item), All You, the Time Inc. magazine that will be marketed through Wal-Mart, will be priced at $1.47. “…at least one source said the price point means Time Inc. is selling the magazine below cost.” For comparison, the “lower-end magazines” Woman’s World sells for $1.49 and First for Women sells at $1.99.

Side note: Where did Keith dig up the “source” who said that $1.47 price was “below cost”? I have no desire to launch into a discussion of magazine economics, but I don’t think “selling below cost” is applicable to merely a component of a business model in which “selling” involves the selling of advertising pages as well as of individual units of the final printed product. I’m basing it completely on my gut, but I’d predict that an analysis of the magazine industry would find that a significant percentage of titles — perhaps the majority of them — “sell below cost.” Come to think of it, using the logic of “the source” of Kelly’s story, I would guess also that the Tennessee Titans sell me my season tickets “below cost,” as the team’s ticket revenues are unlikely to cover Steve McNair’s salary, much less the overhead of the entire organization.

One thought on “Cheap

  1. Something else not sold at a break-even price – a college education. That’s even sadder, given that a lot of freshmen – excuse moi, first-year students – get even less than what their parents paid for and wind up repeating most of that now-not-so-fresh year at a smaller, less expensive and closer-to-home institution.

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