[tylero]

Yes, you're quite right that there is an important distinction to make there.

To clarify one point: Authors typically make their royalties on the wholesale price--that is, the actual cash publishers receive from booksellers like B&N and Amazon. For a printed book, that might be 50-60% of the list price ('sticker price').

The actual retail price, wholesale price, and list price are all related. A higher list price does result in a higher wholesale price, which in turn affects the royalty payment.