Why do books cost so much? Consumers are often baffled at the price tag attached to what appears to be little more than a mass of paper, cardboard and ink. A whole host of factors, including the size of the book, the quality of paper, the quantity of books printed, whether it contains illustrations, what sort of deal the publisher can make with the printer and the cost of warehouse space, all affect the production costs of a book. But, roughly speaking, only about 20 percent of a publisher's budget for each book pays for paper, printing and binding, the trinity that determines the physical cost.