(3) FEATURED E-PUBLISHER
The Right Book Price: pricing ebooks and print
on demand books for maximum profit and sales
Richard Hoy, publisher and co-owner of Booklocker.com
This week we're going to tackle the issue of setting a book's price.
If you read last week's column, you already have a basic understanding
of what costs go into producing a book. So whatever you set your book price
at, you know that is has to at least be enough to cover those costs. Otherwise,
you go broke.
On the flip side, there is already an expectation in the customer's
mind as to the most he or she will pay for a particular type of book. For
example, a 250-page, soft cover, trade-paperback novel (5"x8" cut size)
goes for, at the most, $14.95. So as much as you would like to sell it
for $100 a copy, it ain't going to happen in this lifetime.
So we see that there is a range of prices a customer might pay for a
book.
WHAT TO CHARGE
The first thing in figuring out how to price your book, then, is to
define its possible range of prices. The bottom of that range is the minimum
you have to charge to make back your costs. And the maximum of that range
is the most a customer will pay for that type of book.
Figuring out the minimum is easy. But how do you define the maximum
someone might pay? Well, that is different for every book, But here are
some general rules to guide you:
1.) The harder it is to find the information contained in the book,
the more it is worth. This is why romance novels sell for $6.95 and research
reports sell for hundreds of dollars.
2.) If you have a "captured market" buying the book - a group of people
that have to buy it to fulfill a requirement of some sort - you can charge
more. This is how textbook companies get away with charging college students
$50.00 for a book on American history.
3.) People won't pay more than the going market price for a particular
type of book. The going market price is defined by what everyone else is
charging for their books on the same subject.
If you go to Amazon.com and look at the price of books that are similar
to the one you are trying to sell, you'll get a feel for the most you can
charge.
Another great place for book price data is ISBN.nu ( http://www.ISBN.nu
). This is a book price comparison engine run by Glenn Fleishman. If you
enter either a title, a subject, an author's name or a book ISBN, it will
return the prices of the books fitting those search parameters on every
major online bookstore. Also, use the site anytime you're shopping for
a particular book to get the absolute lowest price online.
Once you know the range of prices you can charge, you should start testing
to find out at which price you sell more books.
PRICING EBOOKS VERSUS PRINT BOOKS
Okay, no book pricing discussion would be complete without talking about
the subject of how to price ebooks versus their print counterparts. We
get asked this question all the time.
Let me start by going into a little rant.
I think people like Seth Godin, best selling author of the book "Permission
Marketing," did a great disservice to the industry by giving way the ebook
version of his print book, "IdeaVirus" (the follow-up to "Permission Marketing").
In case you aren't familiar with the story, the logic goes like this.
Seth claims that by giving way, for free, "IdeaVirus" as an ebook, it
actually stimulated sales for the print version. Now as to the exact reason
why "IdeaVirus" sold so well, we can't be certain. His study was hardly
scientific. The reason could have been that it was his follow up book to
the best selling book "Permission Marketing." Or the fact that viral marketing
was a particularly hot topic in the online marketing industry when the
book came out. Maybe he made more public appearances or got more press
for this book. Maybe the book would have sold even more copies if he just
gave a few chapters as an ebook. Who knows for certain?
What is certain, though, is Seth Godin has reenforced the expectation
in the consumer's mind that ebook = free.
I noticed his latest book, "The Big Red Fez" is for sale on Amazon.com.
It's an ebook...and it's not free.
Here is what Booklocker.com has learned about pricing ebooks after selling
these things for a couple of years now.
1.) If it is information people want immediately, they will pay prices
for an ebook comparable to that of a print book. The format of the information
isn't as important as getting the information fast. And the last time I
checked, downloading a file is still faster than FedEx.
2.) This argument that all ebooks should be $3.00 or less because distribution
costs are so cheap is B.S. Yes, delivering the book to the customer is
cheaper. But ebooks require far more customer support that print books
because they are essentially software. And anyone in the software business
knows that all consumers do not have equivalent technical knowledge. No
one ever walks into a Barnes and Noble and says, "I can't figure out how
to open this book and read it." Yet we get that statement at least once
a day regarding ebooks. So you are really just trading one cost for another
when you distribute electronically.
3.) When you are selling the ebook and print versions of a book side-by-side,
the ebook needs to be less than the print book. But, depending on the subject
of the book, the ebook doesn't need to be priced significantly lower than
the print book. It depends entirely on how long the customer is willing
to wait for the information. (Remember, they are paying for faster-than-FedEx"
delivery when they buy an ebook.)
4.) For fiction, ebooks are not the optimal container for the information.
So the only way you can incentivize a customer to buy fiction in this form
is by offering a low price. At Booklocker.com, we decided long ago that
ebook fiction is not a market we want to focus on (though we do offer ebook
counterparts alongside our POD fiction books). There are people who have
made that business model work. Specifically, a company called Fictionwise
( http://www.fictionwise.com ).
But you'll notice, if you visit their site, that everything is priced around
$6.00 or less.
Wow! Looking back I realize I gave you a lot of info to digest. Munch
on what I wrote.
Type at you next week!
~~~~~
Email
your comments and column ideas to
Richard Hoy at: richard@booklocker.com
~~~~~
**This articled be may be reprinted/redistributed freely as long
as the entire article and byline are included.**
http://www.writersweekly.com/wm061301.htm#fea
- - - - - - -
Author Info
Richard Hoy is the co-owner of Booklocker.com, the most author-friendly
epublisher online offering up to 70% royalties on ebooks, 35% royalties
on print on demand books (the highest in the industry), and non-exclusive
contracts. Booklocker.com strives to help authors make money by combining
epublishing with Internet marketing. See guidelines at:
http://www.writersweekly.com/getpublished/published.html
To subscribe to WritersWeekly.com (it's FREE!), surf to:
http://www.writersweekly.com
Copyright © 2001 Richard Hoy
