I work in a bookstore in New Zealand, and the price of books here is high.  New release Trade paperback $40, "A" format paperback $25-$29.  Hardbacks anywhere from $55 to $70.  I work in an Independent store and we constantly have to try and match the Chains and discount stores.  Often at no margin or a loss.  People still read...we sell remainered books by the hundreds (bought from the UK as it happens).  Someone must be making a lot of money somewhere as the difference in cost for us, from a new release to a discounted title (and often only a year old) is about 90%