On the surface it seems that ebook prices are nuts, but the costs are a lot higher to produce them than you would think. We are just in the process of converting our publications, so here's a bit of an inside peek.
First, the time involved to convert previously formated books and documents is way more than you would imagine. Kindle and its brothers require a flowable, flexible layout, and books don't work that way. PDF cannot be converted directly and be readable. Everything has to be converted into html, and by and large, it all has to be re-edited by hand, graphics changed, etc.
The person-hours cost if pretty heavy.
Now, on the flip side is how much a publisher receives on the basic retail sales cost. It's about 30% give or take. Retailers get about half the retail price.
So, for small publishing companies the numbers really don't work unless you can sale massive numbers of copies. Now, I'd be quite happy to sell a million kindle versions of something and make a buck each, but that' just isn't going