The point of pricing


I’m an advocate of indie publishing, if you didn’t know. Here’s one BIG reason: price points.

Most authors don’t control their price points. If you go through most self-publishing companies, that means you too. Hardcovers, trade paperbacks, and yes, e-books. And it’s about to get worse.

In one of my Facebook groups, I asked the e-reader crowd about their preferences. All of them said anything above $5 is too much to pay. Some wouldn’t go above $4. One mentioned her friends who net $2,000 worth of e-books a month at .99 a pop.

What do you do? I have a self-published friend whose e-book retails for $9.99 on Amazon, which takes 30% of e-book sales – priced above .99 cents – off the top ($3). Her self-pub company takes 50%  of that ($3.50). Her cut is $3.49 minus distribution and taxes, provided she actually sells e-books at $9.99. I tried asking them for specifics, but the company won’t say (RED FLAG).

If the books aren’t moving, she can’t drop the price, and since her self-pub company owns the rights to the digital files it designed, she can’t sell them on her website at a lower price.

You want to give it a go at .99 cents? That’s not a sound business strategy for long-term growth. Thousands of dollars a month is the exception, not the rule. At .99 cents, your royalty rate doesn’t go above 35%, and if they’re not moving for whatever reason, will you drop the price lower?

I sell mine at $2.99 and encourage you to do the same, or close to it. Amazon, Barnes and Noble, and Smashwords all provide platforms where you can publish your work and control your price point. Hope this helps!

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Blog at WordPress.com.

%d bloggers like this: