How to set the price for your self-published book
A lot of my students and clients ask how they should price their self-published titles to optimize sales.
How much should you charge for a self-published book? It’s a complicated issue with no quick answers. But there is a strategy that can help you find the right selling price for your masterpiece.
Spend any time looking into the issue of book pricing, and you’ll soon find that there’s a lot of advice out there. Dozens of author blogs offer detailed arguments for exactly how much you should charge for a book and why. Yet there are still sharp differences of opinion about even the most fundamental issues.
For example, when is an eBook too cheap—or too expensive? What’s a fair basis for comparison? And what about print books?
The real secret is that there is no secret formula. There is no magic number. Every book is different. Every author is different. Every reader is different. And in a marketplace that’s constantly evolving, what worked for one author last year may or may not work for you this year.
Still, you don’t have to start completely from scratch every time. There are several considerations that apply to all self-published authors, whether you’re working on your first book or your twentieth, a novel or a high-end photo book:
Put the reader first
Instead of starting out with “what is my book worth,” ask “what are readers willing to pay?” Specifically, “What are they willing to pay for THIS book? Do they know my writing, or are they taking a risk on an unknown writer and their work?
It’s a game of balance and tradeoffs. Author Catherine Ryan Howard once pointed out that for a reader, the ideal price “is high enough that you think quality but low enough that you think trying this book is risk-free.”
Market data and anecdotal evidence both bear this out. One widely cited 2013 study suggested that there was a “sweet spot” for eBooks priced at $3.99. At that point, it was speculated, eBooks rise above the mass of 99-cent specials, but are still inexpensive enough for readers to take a chance on an unknown writer, especially if that book or writer gets good reviews online. Take such numbers with a grain of salt:
That study is over a year old and trends constantly change. But put yourself in the mindset of a reader instead of an author and you’re off to a good start.
Consider your status
It’s always a good idea to look at the competition. But if you’re going to compare prices, it’s probably better to focus on other self-published books rather than bestsellers from the “Big 5” traditional publishers.
“Readers are going to be even more reluctant to pay high prices for completely unknown authors,” writes David Gaughran, author of the Let’s Get Visible publishing blog. “They aren’t willing to pay a premium because the publisher is Simon & Schuster, but because the book is written by Stephen King.” Maybe you don’t have to aim quite that high, but consider the size of your fan base. If you’re an established name in your field, you can probably charge a little more. But if you’re a beginner, think small and scrappy.
A large publishing house has more costs that can be deferred, more clout in the marketplace, and a different set of expectations from an individual, self-published author. But you can use your independence to your advantage, particularly in eBooks. Believe it or not, you might actually earn more from each sale of a self-published eBook sold at $2.99 than a traditionally published author gets for an eBook sold at $9.99. So don’t be afraid to experiment.
Consider your genre
When you’re comparing prices, be sure to focus on books from your own genre to get the most accurate picture of the market. And once again, think about the readers.
If you write in a genre where people tend to buy frequently and read quickly, low price can make a big difference. All book purchases add up fast, so raising the price by even a few dollars can leave your book looking very expensive.
For literary fiction, nonfiction, or cookbooks, chances are your readers are buying less frequently and may have different price expectations. And for artistic photo books, the numbers change again. So look carefully at the most direct competition: Books in your genre from self-published authors with comparable levels of name recognition.
When you publish a book in print, there is always going to be a manufacturing cost for that physical product. This is the base price of your book, and it’s the minimum amount you can charge for it (unless you plan to buy them yourself and give them away at a loss). Generally, you’ll want to add a markup that enables you to make a profit each time the book sells. The base price plus the markup equals the list price that a customer pays for your book.
BASE PRICE + MARKUP = LIST PRICE
If you’re selling your book directly from your web site you get to keep 100% of the markup. But if you’re making a paper book available for sale through Amazon, it’s a bit more complicated. Amazon adds an additional fee (15% of the selling price plus an operational charge). So our formula changes to:
BASE PRICE + AMAZON FEE + MARKUP = AMAZON LIST PRICE
Parting thoughts
There is a lot to consider when it comes to book pricing, but don’t let yourself be intimidated. One of the great advantages of self-publishing is the opportunity to experiment. Don't be afraid to tinker with your prices, especially for eBooks. Try changing the price a little bit at a time until you find the right balance. Don’t worry too much about immediate sales; you’re in this for the long haul.
Last, but certainly not lease, I'm going to join the ranks of the myriads of profitable self-publishers and say:
"Check on Amazon.com and Barnes and Noble and see what your competitor is charging for a similar item!"
How much should you charge for a self-published book? It’s a complicated issue with no quick answers. But there is a strategy that can help you find the right selling price for your masterpiece.
Spend any time looking into the issue of book pricing, and you’ll soon find that there’s a lot of advice out there. Dozens of author blogs offer detailed arguments for exactly how much you should charge for a book and why. Yet there are still sharp differences of opinion about even the most fundamental issues.
For example, when is an eBook too cheap—or too expensive? What’s a fair basis for comparison? And what about print books?
The real secret is that there is no secret formula. There is no magic number. Every book is different. Every author is different. Every reader is different. And in a marketplace that’s constantly evolving, what worked for one author last year may or may not work for you this year.
Still, you don’t have to start completely from scratch every time. There are several considerations that apply to all self-published authors, whether you’re working on your first book or your twentieth, a novel or a high-end photo book:
- How much will readers pay?
- How much flexibility do you have?
- How low can (or should) you go?
Put the reader first
Instead of starting out with “what is my book worth,” ask “what are readers willing to pay?” Specifically, “What are they willing to pay for THIS book? Do they know my writing, or are they taking a risk on an unknown writer and their work?
It’s a game of balance and tradeoffs. Author Catherine Ryan Howard once pointed out that for a reader, the ideal price “is high enough that you think quality but low enough that you think trying this book is risk-free.”
Market data and anecdotal evidence both bear this out. One widely cited 2013 study suggested that there was a “sweet spot” for eBooks priced at $3.99. At that point, it was speculated, eBooks rise above the mass of 99-cent specials, but are still inexpensive enough for readers to take a chance on an unknown writer, especially if that book or writer gets good reviews online. Take such numbers with a grain of salt:
That study is over a year old and trends constantly change. But put yourself in the mindset of a reader instead of an author and you’re off to a good start.
Consider your status
It’s always a good idea to look at the competition. But if you’re going to compare prices, it’s probably better to focus on other self-published books rather than bestsellers from the “Big 5” traditional publishers.
“Readers are going to be even more reluctant to pay high prices for completely unknown authors,” writes David Gaughran, author of the Let’s Get Visible publishing blog. “They aren’t willing to pay a premium because the publisher is Simon & Schuster, but because the book is written by Stephen King.” Maybe you don’t have to aim quite that high, but consider the size of your fan base. If you’re an established name in your field, you can probably charge a little more. But if you’re a beginner, think small and scrappy.
A large publishing house has more costs that can be deferred, more clout in the marketplace, and a different set of expectations from an individual, self-published author. But you can use your independence to your advantage, particularly in eBooks. Believe it or not, you might actually earn more from each sale of a self-published eBook sold at $2.99 than a traditionally published author gets for an eBook sold at $9.99. So don’t be afraid to experiment.
Consider your genre
When you’re comparing prices, be sure to focus on books from your own genre to get the most accurate picture of the market. And once again, think about the readers.
If you write in a genre where people tend to buy frequently and read quickly, low price can make a big difference. All book purchases add up fast, so raising the price by even a few dollars can leave your book looking very expensive.
For literary fiction, nonfiction, or cookbooks, chances are your readers are buying less frequently and may have different price expectations. And for artistic photo books, the numbers change again. So look carefully at the most direct competition: Books in your genre from self-published authors with comparable levels of name recognition.
When you publish a book in print, there is always going to be a manufacturing cost for that physical product. This is the base price of your book, and it’s the minimum amount you can charge for it (unless you plan to buy them yourself and give them away at a loss). Generally, you’ll want to add a markup that enables you to make a profit each time the book sells. The base price plus the markup equals the list price that a customer pays for your book.
BASE PRICE + MARKUP = LIST PRICE
If you’re selling your book directly from your web site you get to keep 100% of the markup. But if you’re making a paper book available for sale through Amazon, it’s a bit more complicated. Amazon adds an additional fee (15% of the selling price plus an operational charge). So our formula changes to:
BASE PRICE + AMAZON FEE + MARKUP = AMAZON LIST PRICE
Parting thoughts
There is a lot to consider when it comes to book pricing, but don’t let yourself be intimidated. One of the great advantages of self-publishing is the opportunity to experiment. Don't be afraid to tinker with your prices, especially for eBooks. Try changing the price a little bit at a time until you find the right balance. Don’t worry too much about immediate sales; you’re in this for the long haul.
Last, but certainly not lease, I'm going to join the ranks of the myriads of profitable self-publishers and say:
"Check on Amazon.com and Barnes and Noble and see what your competitor is charging for a similar item!"