How Should I Price My e-Book?
A popular question many authors ask us is “how should I price my e-Book?”
It is a good question and there is a large amount of debate on the internet about what authors should do. Is this something you really need to think about when deciding on your book marketing strategy? Pricing in a lot of book marketing campaigns is of course a crucial decision to make and can impact the outcome.
There is a lot of evidence to suggest that fiction sells best at a lower price point. The rationale is that readers are far more likely to take a chance on a low priced book, than a higher priced book.
The way the KDP works is that Amazon takes a cut of your sale price as a commission and you get to keep the rest. However, the amount they take depends on the price you charge.
Books sold for less than $2.99 (£1.88) have a 35% royalty payment.
Books above $2.99 (£1.88) have a 70% royalty payment.
So what is the solution? Well this completely depends on you but we take our lead from Scott Pack. Scott really understands the digital side of publishing. Which is hard to argue with as he is responsible for a number of Kindle bestsellers and provides HarperCollins with essential insight on their digital market.
So what was his advice?
From our reading he suggests pricing at the lower tier for a week and then lift to the higher tier. You should make this clear to the reader, therefore adding a layer of urgency to the initial week.
The rationale for this is to get the best of both worlds. Obtain the peak in early sales (and resultant higher ranking), but then be able to make money on the long tail of sales in the coming months and years.
If you have any questions regarding publishing or book marketing please drop us a line.
Thanks to the following sources for data and facts:
Bubblecow, Publishers Weekly, Tech Crunch