Authors who self-publish their work must weigh a number of considerations when determining a price for their book. Among these are:
- Perception of quality
- Consumer appeal
- Author royalties
- Time spent
Let’s examine these considerations:
- Perception of quality. Does the 99-cent novel consign our work to that wasteland of low-quality, error-riddled novels? Are you banking on savvy consumers to somehow pick out your high-quality novel among the scores of amateur efforts? I decided to price my first novel, Small Change, at $2.99, which is the lowest price on Amazon for which the 70 percent author royalty applies. Why? Frankly, I thought it was worth at least that, but as a new author, I didn’t feel confident pricing it above that level. My thought on perception is this: if you believe your novel is of a high quality (don’t we all?) and you have put a lot of time and resources into your work, I see no reason not to price it at $2.99 or higher. That’s less than the cost of a latte at your favorite coffee shop.
- Consumer appeal. The 99-cent novel has great appeal. It is low risk (no risk, really)/high reward for the consumer. If the consumer doesn’t like the book after finishing the first page or chapter, what has he lost? The consumer has paid less than he would for a pack of gum. The price point matters to consumers. Just ask Amanda Hocking or John Locke. I haven’t ruled out dropping my price to 99 cents, but I would like to have a second book out there before I do that.
- Author royalties. If you are confident your book will sell and are willing to put in the time and effort to market it, you are leaving a lot of money on the table by opting for the 99 cent price. Amazon offers authors a royalty rate of 70 percent for books priced at $2.99 or above through its Kindle Direct Publishing program and 30 percent for books priced below $2.99. The example often cited is John Locke, who sold one million e-books at 99 cents, but would have made a lot more money by setting his price at $2.99. Of course 99 cents is part of a deliberate marketing strategy, which brings me to my next point.
- Marketing. 99 cents is seductive. An author doesn’t need any descriptors like “only” or “such a bargain.” The price speaks for itself. Put on your marketing hat and ask yourself: is it possible to underprice a book in these times? I don’t think so, especially when authors are offering “free” promotions to get their work in the hands of readers. However, it is possible to over-price your book. If you are a first-time author and you are charging $4.99 for your book (just to pick a number out of the air), why would a consumer want to take a chance on you when he could buy the hot new 99 cent novel? Besides, if you charge 99 cents and sell a ton of books, a publisher will take notice, as was the case with Amanda Hocking, who was signed by St. Martin’s Press.
- Time spent. Here’s where things get dicey. You have no problem charging 99 cents, but then you think about all the time you spent on your manuscript. Let’s say you spent 1,000 hours on the first draft. Figure another 1,000 hours on revisions, editing, proofreading, and polishing your work. These are conservative estimates. Throw in 50 hours for marketing and coordinating your cover design. That’s 2,050 hours. I’ve made close to $60 on my book so far. If you calculated an hourly rate for the time spent, I’m making pennies on the hour. And that’s fine with me. This is a passion, not a job. It all comes down to your goals and how to achieve them.
So what’s the bottom line? Authors should experiment with price. Err on the low side. Don’t get caught up thinking your book is the best one ever written and the reader will gladly pay eight or nine dollars. It’s not going to happen, unless you are Jonathan Franzen or Stephen King.
How much would you pay for an e-book by a first-time author? How much would you pay for an e-book by a renowned author?