Posts Tagged e-book pricing
The psychological thriller, Bedsit Three, is now 99p/99c on Kindle until the end of June!
Since publication last October the e-book has been priced at £2.25 and I’m experimenting to see how price sensitive demand for the book is. As the price falls to less than half-price will sales rise sufficiently to make up for the vastly reduced royalties I will receive?
Bedsit Three is not in KDP Select because it’s also on sale via other e-book channels such as Kobo (where, surprisingly, it sells better than on Kindle) so this is not a Kindle Countdown deal. I have simply dropped the price across all Amazon territories.
Selling at 99p, I will receive 29p per book royalty compared to £1.29 per book when selling at £2.25. So I need to sell at least 4.5 times more books at the lower price to make me keep it at that price point. I’m interested to see what (if anything!) happens.
Extracts from Amazon UK reviews for Bedsit Three:
“A psychological why dunnit reminiscent of Barbara Vine/ Ruth Rendell. Highly recommended!“
“I picked Bedsit Three up late on Friday evening. I had finished it by the following Sunday lunch time and I absolutely loved it. The last book that held my attention like that was Stephen King’s Misery.“
“Believable, empathetic characters and exciting tensions and resolutions in the fast-moving plot.“
Last week I (like all Amazon authors) received an email from Amazon about changes in the VAT rules for e-books. This change comes into effect on January 1st 2015.
Previously (i.e. pre-Jan 2015) VAT on e-books was calculated according to the seller’s country but under the new rules, VAT rates will depend on the buyer’s country. Previously, VAT on Kindle e-books was 3% because Amazon’s headquarters (Amazon are the sellers) are in Luxembourg. Now, for UK e-book buyers it will rise to 20%.
Amazon will automatically change all list prices of existing e-books to reflect this change. This means that Kindle e-book prices are on the rise. The British government will benefit but readers of e-books will lose out.
Previously the lowest price possible on Amazon UK for an Indie e-book, with the author choosing 35% royalties, was 77p. From the 1st Jan 2015 this will rise to 99p. The lowest possible price with the author choosing 70% royalties was £1.53, this will rise to £1.99. The Amazon information page on this is here.
The moral of the story for readers? Stock up on e-books before the end of the year, or face a steep price hike! If you were planning on shopping for a Kindle or tablet in the January sales, download the free Kindle app to your PC and buy your books now to read on your new Kindle later.
The moral of the story for Indie writers? I’m not sure. We’ll have to wait and see if the new, higher prices send the customers running back to print books. Let’s hope not!
Another word of warning – if you sell e-books directly from your own website, it is your responsibility (whether you are currently VAT registered in the UK or not) to implement the new rules i.e. you must charge VAT according to the buyer’s country and then pay the VAT to the relevant government. I’ve found two interesting links on this topic Rachel Andrew has written a blog post and Juliet E. McKenna has put together another useful post.
The text has been formatted, uploaded to Amazon and checked in their ‘Preview’ function.
But producing the cover has been a battle (see the image on the right – I’m not sure the font is clear enough – what do you think?).
In the end I’ve created the simplest of images by taking a free photo from Stock Free Images (in return for this credit at the front of the book – © Vojsek | Stock Free Images & Dreamstime Stock Photos) and used GIMP software (free to download) to add the book title and my name. If anyone else is thinking of doing this, be warned that GIMP is not easy to use – I spent much time searching for help elsewhere on the internet. But it’s probably like anything else, the more you do it, the easier it gets. I’ve listed some of the links I used at the end of this post.
Now I need to decide on the pricing structure. Do I sell it cheap or dear?
If I price the book between 75p and £1.49 then I get 35% royalties, if I price higher than £1.49 then I get 70% royalties. So, by my calculations, pricing at £1.50 would earn me £1.05 per book and pricing at 75p would earn me around 27p per book.
Do you think if I go cheap I will sell four times as many books – or am I merely devaluing the writing?
Links to Gimp Tutorials