The Problem With Book Pricing

The book industry (I think) works like this:

1.  Author writes book.

2.  Publisher sells book to Amazon, B&N, Walmart, iBook store, etc

3. Author gets $1

4.  Everyone else goes home laughing

Steven Frank wrote a book and is selling it for $2.99.  He offers it in the Kindle store, but I chose the ePub version without DRM for the same price.  I am happier (cheap price and unprotected file) and he’s probably making $2.50 after processing fees.