Pricing a product is a fine balancing act. On one hand, you want to be paid a reasonable amount for your work. On the other, you want customers to feel that they’re getting a good deal.
This article isn’t someone whining about the hardships of being a writer. I love writing – I’m probably addicted to it. I just need to re-think the business side of things, and I want to be open and honest about it. Plus, some of the details might be interesting too. And, heck, maybe someone will offer me some better ideas – those are always welcome!
I’m a new author, fighting to build up a customer base. Here’s the situation as it stands:
Short Stories – Sell For $1.50 or 99c on Amazon – My return is 52c or 35c (at 35% royalty)
So if I sell 100 copies, I could make between $35 and $52... If, like many new Indie Writers, my initial sales are 10 or less, I make maybe $5. This simply isn’t worthwhile for 2 weeks work.
Novel Length Stories – Sell for $2.99 on Amazon – My return is $2.02 (at 70% royalty, as the price is $2.99)
Here, 100 copies would earn me $202... Whereas 10 copies would earn me $20. A novel can take between six months to a year to complete.
Basically, until I start selling copies in the thousands, my sales-structure isn’t viable. If I’d been living solely on my earnings for writing, I’d have had to give up a long time ago.
I’ve been doing researching the subject and discussing it in depth with people too. Here some of the pros, cons & thoughts:
(1) I don’t want to drive potential customers away by overpricing. Also, I know people can’t necessarily afford to pay a lot for a short story or novel by a new Indie Author.
(2) I probably am driving customers away because my prices are too low. The logic that bottom prices will attract interest doesn’t seem to hold – a lot of people seem to believe that if something is very cheap, it’s probably crap. In my experience this is definitely true of cheap cars: there’s a chance of a great deal, but a greater chance you’re buying a rust-bucket.
(3) Another aspect is, if you sell books too low, certain people still won't buy them - they expect them to become free at some time... And whilst I don't mind the occasional free promotion, I don't want to work for nothing.
(4) I’m devaluing myself personally by selling too cheap. If a guy cleaned your windscreen, you’d give him at least 50c for that minute or two or work... Yet my current price for a short story gains me less than that for 2 weeks work. People should place a value on their own worth and time, and I’m not doing that... So long-term, I’m going to become jaded and give up. And that’s wrong, because I have a lot of good stories to tell and I believe I can tell them well. I have to respect myself as a writer.
(5) For a release under $2.99, Amazon only gives 35% royalty. At $2.99, I get 70% royalty. So:
If I sell 1 x Short Story for $2.99, I’d make $2.02
If I sell Short Stories for 99c, I’d get 35c each... And I’d need to sell SIX to make $2
If I sell Shorts Stories at $1.50, I’d get 52c each... And I’d need to sell FOUR to make $2.
Basically, I’ve been crazy selling anything at the 35% royalty.
(6) What about customers who can’t pay $2.99 for a Short Story, though? I’m committed not to let them down and I won’t. I have already been featuring Special Offers in my Author’s Newsletter. Anyone who supports me through their interest in the Newsletter will be able to buy at a budget price.
(7) With series such as Era Of Darkness and the Short Horror Tales, I’ll also release Bundle Editions (which old-fashioned folks like me call omnibuses) that will be cheaper than buying individually.
(8) I need to find a careful balance: providing great value for money, while receiving money for value.
So, the revised Price Range will be:
Short Stories: $2.99
Novellas: $3.99
Novels: $5.99
Newsletter Readers will get great deals. Any comments?
Check out this great article on Author Pricing: