It’s true that these material costs are removed from the equation of e-book costs. But most publishers are still publishing print books, so those costs remain part of their bottom line. Publishing e-books adds costs: making design adjustments, encoding in multiple formats, creating metadata methodology, etc. Making an e-book is not cost-free. The main cost behind a book is not its printing or its shipping — it’s the creation of the work, from inception to publication. Most important, this means, as Harlan Ellison famously (and profanely) said, pay the writer. In addition to the author, there is the author’s agent, as most authors who make it to publishers have one; there is the editor who works on the book, an assistant editor, a proofreader, a copy editor, a fact-checker; a cover designer; a layout person; a marketing department; a dedicated publicist. Whether a book is printed or digital, all those people are still involved in bringing the book to market.