Monday, November 05, 2012

What's a Fair Price for an E-Book?

Warning: Super long blog post ahead, and it has qualities similar to that of a rant, so go forward with caution.


For quite a while now I've read the myriad discussions regarding what is a fair price for an e-book from the perspective of the writer.  

Many a blog post like this one by Melissa Foster on the Indie Reader question "Are Self-Pubbed Authors Killing the Publishing Industry?"  In the first sentence of the article, Ms. Foster states that self-pubbed authors devalue the written word with books priced low to gain attention.  Later on in the article she gives the pronouncement that yes, self-pubbed authors are the bane of the publishing world because they "give away" their books for "less than a buck" and use other "gimmicks" to garner sales.  Quite honestly, I found the whole article rather obnoxious, but didn't really feel the need to evaluate why.  I filed the article away under my Opinions That - While Interesting - Don't Really Seem Fair or Right mental filing cabinet.

Today I was reading a section of Writing on the Ether by Porter Anderson titled "Pivot: Jonny Geller, Enough to Go Around."  In the section, Mr. Anderson relates  several points Jonny Geller made in an article of his own regarding the state of the publishing industry, including this one, "Readers need to risk paying for books again."

Mr. Anderson followed up the point made by Jonny Geller by saying,
"We can talk all day about the reader as a nearly holy figure in our business — seriously overlooked too long by the traditional publishers. But it’s also time for that reader to play his or her fiduciary role in the equation again, and prove the bargain basement prices of the fin-de-agency period to have been what they were, the dive for algorithmic leverage of amateurs flooding the market."


Before I go any further, I need to say that Porter Anderson is a very intelligent, witty and friendly guy.  When I read WotE I often don't understand exactly the points he makes, and I definitely am not being critical of the article.  That being said, what the article did was force me to change my perspective from writer to reader and back again. Quite frankly, I thought "Whoa. Hold on there."

First, as a soon to be self-published author, if I sell my book for something less than... Heck, I don't even know what Melissa Foster or the other people who think a low price devalues a book thinks I should sell my book for.  At what price do I show the world that I value my work?  Can anyone tell me?  Is $2.99 enough, or does it have to be higher?  Should I match traditional publishing at $9.99?  Do you honestly think I would sell any books if I did?  And yet, if I price point my novel in order to get someone to take a risk and buy my book, I am accused of devaluing my work and undercutting authors everywhere, but especially the "professionals."  I am not exactly sure who the professionals are, but it sounds suspiciously to me that they are those traditionally published.

Secondly, as a reader, if I buy a $.99 priced novel by a self-published author, I am accused of not holding up my share of the author/reader bargain and shirking my duty of paying an author what they're worth.  What happens if I buy a $.99 priced novel by a famous author who is traditionally published, and the publisher is running a sale?  Am I still shirking my duty as a reader?  And why is a sale (GIMMICK) by a traditional publisher all right, but by a self-published author it's tacky and devaluing to the written word?

As a reader, when the price of paperbacks rose above $7.99, I quit buying so many books.  Gasp, I know.  I got really friendly with my neighborhood library.  Then, after I became invested in some authors for FREE, I started buying their books.  Let me ask you, did the fact that I read their novels for FREE mean that I devalued their work, their talent?  No, it means I didn't have a very lucrative cash flow and I still wanted to read.

I think part of the problem about the whole "devaluing" issue is the question of how you measure the value of your personal time and creativity.  Someone I read said something like "Writing books is art, selling books is a business."

Throughout my twenties, I worked in the head offices of a retail chain as an assistant to the clothing buyers.  I learned about mark-up.  With clothing, the mark-up is basically double.  You buy a t-shirt for $2.99, you sell it for $5.99.  When a person self-publishes the need for mark-up is diminished.  The book is going to be available digitally forever.  If a person spends $1,000 for editing, cover, etc... they can afford to be patient with the first book being a lower price and baiting the hook for readers.  It's a career being built, not a get rich quick scheme.

So, do you want to know the funny part of this post (if you've even made it this far.)  The funny part is, I totally plan on selling Finding Meara for at least $2.99 or more, unless it's enrolled in a special program like Kindle Select.  I'd made that decision even before I decided to self-publish.  My reasons?  When I am shopping on my Nook and I see a book listed for $.99, I don't even really stop to look at it.  I judge the book by it's price point.  However, the same is true for the other end of the monetary scale. Also, you can sell less books at a higher price point and make more money. Hard math there.  Dean Wesley Smith taught me that.  He's got a great blog every self-publishing author should check out.

Does the question of a fair price for an e-book have an answer?  I don't know. I think it's up to the person putting their book out there.

Did you make it through the whole post?  What are your thoughts about the whole pricing issue with e-books?


35 comments:

  1. Whoo! Yes, Lara, I made it to the end of the post. And no, I don't consider it a rant at all. These are the very issues I've been wrestling with for months. I decided that I would have three novels finished and ready to ship with an anthology of short stories ready as reader-bait [Get 'em hooked.] before I press that self-publishing button on the first in the series. I'm thinking about $3.45 as my price point, except on those Kindle booster days. But I'm about 7 months out of launch. We will see if I change my tune before then. Keep us posted on your success rate.

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    1. I'm glad the post wasn't terribly rant-ish. :) Pricing is difficult to determine, but the nice thing is if your pricing doesn't seem to be moving books, as a self-pub. author you can always change it and try a new price point!

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  2. I think $2.99 is a sufficient start! I not only look at the cost, but also the number of pages. I have a short story out on Amazon for $.99 and it is a whopping 7 page baby of mine. :)

    I've had 12 copies sold and 48 downloads when it went through a free promotion. That's 60 pair of eyes who never read it before. So, I'm of the mind that you must get people to read your work before they are willing to pay more for your other works. There's nothing wrong with increasing the cost of your work as you go.

    Great post, Lara!

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    1. I agree, Diane, and have seen other self-pub. authors do exactly what you're talking about. The first book is priced to sell, and then subsequent books/work is a little higher in price. I would think this would be particularly effective with a series.

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  3. Self-published authors are really a business. Businesses offer sales to attract customers. Why shouldn't authors offer occasional sales to attract readers? It's a simple concept, really. Those who cry foul are probably just concerned for personal reasons, but it feels good for them to lash out at others as being less than professional. To them I would ask, "What's wrong? Are you afraid your book isn't good enough to hold its own?" Jealousy abounds, especially since the face of publishing is changing. Bottom line, readers, who are an important component in all of this, just want good books to read.

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    1. I think you hit on something. What is the concern? Aren't there enough readers out there to buy the $.99 book and the higher priced one? If I read a blurb of a book I want to read, and it isn't expensive, I'll buy it whether it's at $.99 or $4.99 (that's about my limit.) And if I happen to buy a $.99 book, I'll maybe go shopping for another. I can't get why everyone is so worked up.

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  4. I tend to pass over .99 books as well. I don't know why, I just don't expect them to be good. (Unless they are normally more than that and are just on sale). It's a shame, I know. My feeling is that ebooks should be priced anywhere between $2.99 and $6.99. That seems reasonable to me given the fact that no one has to PRINT THEM. The ebook is made and that's that. They don't have to REmake it every time someone orders one. When we didn't have ebooks I always waited for mass markets because they were the cheapest. It's not about devaluing my favorite authors, it's about being able to afford to read them! If I was willing to pay $5.99 or $6.99 for a mass market (although I realize they're more expensive now) then why wouldn't I pay that for an ebook? I'm going for the inexpensive version, after all. If I wanted a real, physical, quality book I'd splurge and get the hardcover or trade paperback for between $20 and $30. But I rarely do that because all I want to do is read the story. I had been buying the Big 6 ebooks at anywhere between $10.99 and $14.99 but I won't do that anymore. I think that is positively outrageous for an ebook. In fact, in that case the paperbacks are usually cheaper. It literally does not cost as much to produce an ebook as it does to produce a physical book. So why are big publishers charging so much for ebooks? It makes me angry. My publisher publishes ebooks at $3.99 and I think that's awesome. I think it says "we value these authors' works" but also it's priced so that people can actually afford it! And if people can actually afford it, they'll buy it which means exposure to more readers. I mean oftentimes I'll see a ebook on Amazon or B&N, really be interested in it but when I see a price over $6.99 I'm like, sorry, nope. I think you're on the right track. $2.99 says I value my work but I want it to be accessible to readers.

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    1. I venture a guess that Big 6 (soon to be Big 5) publishers charge so much for e-books because of greed. If anyone has any insider info that demonstrates I am wrong, I would love to hear it. As for right now, there is no other reason. You're right - e-books don't have the cost involved with paper printing.

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  5. Whew. Made it. ;)

    Interesting. I'd never thought about this. I'd probably be like you and start at $2.99. Or a few dollars within that.

    I hesitate at much over and often am not willing to pay until I've heard a lot about it. I also use the library, which is a great way to access most mainstream authors who's books are in the double digit range. But the thing about digital to me is, that if I'm gonna pay $10 for a book, I kinda want the actual book.

    The whole cost thing is hard to analyze. You don't know how many you will sell. And when you'll start to recoup your money. And really, what did it cost you to write it? You may have a # from paying an editor, or someone to help with the cover, but what's your time worth? And how many hours did you put into writing and editing? I know I don't keep track.

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    1. Yeah, it took a while to get through it all,huh!?

      There's another plus for starting at $2.99 I forgot to mention. On Kindle, at any price point under $2.99 the author gets 35% of price. At $2.99 and above the author receives 70% of the price.

      When you spend two years writing and editing a book, I don't know how you can decide how much you need to make back before you break even. :)

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  6. I keep pushing this from my thoughts, although I admit it pops in from time to time. I don't like to spend as much on an e-book because I love the hard copy so dang much. I might go as much as $5, but usually not more. That said - this has nothing to do with me not thinking the author is worth more. Honestly - I'd rather splurg and by the thing in hard or paperback than go for the ecopy still. *smacks self*

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    1. When it is cheaper to buy a hard back at Target or Walmart than buy the e-book, I think the purpose of an e-book is lost. It's meant to be a cost effective option. Or at least, that's what I've always thought. Maybe I'm wrong. :)

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  7. I've thought about this too, but never this way. I think I consider ebooks as something that should be cheaper than the hard copy, even when they are both available. But only because the publisher (whoever that may be) is saving a bunch of money on printing. So if there is a book available both hard copy and ebook and it's the same price, I'll buy the hard copy, but if the ebook is cheaper, whether it's $2.99 or $5.99, I'll buy that one. It's never about how much I think the author is worth. Unfortunately, I have to do what works for me and what I can afford.

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    1. I would agree, Cassie. I haven't bought hard cover books in forever - at least, not at full price. If they hit the bargain box at Walmart and I can get one for $5.00, then heck, yeah, I'll buy it. The way I've always viewed books are that they're an entertainment service and so I purchase the service for what I'm willing to pay. I don't buy a book thinking "I really want James Rollins to know I admire his work and value it so highly I'll bay $20.00 for the story." I'm thinking "Yay, I can get a whole e-book set for $8.00? Cool!"

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  8. I'm not knowledgable enough about e-publishing to venture an opinion as a writer--but as reader, I would not purchase any book for over a $5 price point unless I know I'm going to love it.

    The economy has hit my family hard, I am very well acquainted with my library and while it's hard to wait for the new book everyone wants, I do it. I can afford .99-2.99 for a digital book from an author I know I love--or a writer friend I would love to support. Beyond that, (shakes head) the digital book is, after all, only computer bits and bytes. I had heard a traditionally published author only gets $1. per book sold on the average--so why is wrong for that same author to sell his/her book for 2.99 or less? Aren't they making more royalties this way? Is ten dollars for an e-books really the same profit structure as a $15-20 printed book? I don't think so. Someone is making more out of this, I think b/c the paperback version sells for less--and there is more overhead on that.

    It's all too confusing. You did a nice job with this Lara.

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    1. Thanks, Denise. I love your point about how much in royalties a traditional author gets on their book. I have no idea what the figure is, but I do know that if an author gets an advance, they have to pay the advance back first. I read somewhere that trad publishers will sometimes get 70% of e-book royalties, which is a good reason for them to charge the heck out of the e-books of their best-sellers. The author then has to share the remaining 30% with the agent, who gets 15% as well. Of course, it all depends on the contract, but it's a good reason to be looking closely at what you're signing.

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  9. I'm with Denise. I wouldn't buy an e-book over a certain price. If I want to own it, I want to display it, so I buy the hardcover copy. Mostly, I borrow e-books from the library. I can't bring myself to pay that much for something that I can't lend or display in my home, even if it is convenient.

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    1. I've never borrowed e-books from the library, even though I know we have the ability at my library. I should try it. I've heard there is a wait, though, for many books and then I'm so slow getting through a book... I don't think I've ever bought an e-book over $9.99, either. I figure I may as well go get the paper version.

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  10. Lara, Not a rant at all. As someone mentioned, a self-published author is a business, so I believe you have to charge what you feel comfortable whether it's 99 cents or 2.99. Is there a set amount you would like to make from your book? I hear one self-published author's presenation about calculating the cost of your time. Figure your hours it took to write, edit, etc.? Any fees you paid to get the book published, etc? Then figure out the cost, etc. I did hear a storybook author (childrens) mention that while you get more royalty for the 2.99 book, the market for children's ebooks and apps seems to be around the 99-cent mark. "People don't want to pay more." So, I keep hearing over and over. I don't mind buying books I want whether ebook or real book. I don't get free books for my kindle, just because they are free. I only get the ones I'm interested in. I think 7.99 is the most I've paid for a self-published author. Good luck. I appreciate you sharing these thoughtful posts - food for thought for both readers and writers.

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    1. Thanks, Stacy! I think writing being a business is why the statement about the reader risking more hit me so funny. As a reader, I don't think I can be held responsible for what an author chooses to sell their book for. That's like saying the people who shop at expensive boutiques are responsible shoppers and everyone who shops at Walmart is ripping off clothing retailers.

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  11. The lady who influenced me to get into e-pubbing sells hers for $9.99 and has a large YA following at that price. My first book is a Christian devotional, and I followed her example, pricing it at $9.99 and $13.99 for paperbacks.

    My Fancy series of novellas is priced at $2.99 and $7.99 for paperbacks. Would I sell more copies at lower prices? Probably. Would I sell enough more to offset the reduced profit per book? I don't know.

    One thing I'm not likely to do is sell them at a price that brings 35% instead of 70% - unless it was a limited time promotion.

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    1. I agree about the 35% compared to 70%. At 35% of $1.00 you'd have to sell five books to reach nearly the same amount of profit of selling one book at $2.99.

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  12. This blog post struck several chords with me.

    Regarding my books (collections, if they ever get published) - I don’t want to give them away, nor do I want to whore them out at 99 cents a copy. I don’t even want to go $1.99 or $2.99 because I know what it takes to write even one poem or one short story. I’m a good writer, and I have a great editor (Shawn MacKenzie). I work hard learning how to tell a story, how to mix the right adjectives, how to write scenes and dialog. I read about writing – blogs, articles, books. I read grammar and style manuals.

    However, I’m a John when it comes to acquiring new books. Since I got my Kindle last November, I consistently troll the ‘free’ section. Pre-Kindle, I spent a couple hundred dollars every month on books; over the last year, I spent about three or four bucks a month. I’ll buy an e-book if Stephen King publishes something or if someone I know publishes a new book (like Kathryn Magendie or Shawn MacKenzie).

    Free books sort of suck. Out of 100 free books I get on my Kindle, I delete about 70-80% after the first few pages because, well, they are awful! The e-book explosion has enabled poor writers to publish a lot of garbage.

    Don’t just decide to write – decide to write well, and then learn how to write well.

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    1. Many of the more optimistic posts I read say the good writing will rise to the top. I think that's true. Maybe it'll be priced at $.99 or maybe $2.99, or even $9.99. You make a good point about free e-books. The difference between free on Amazon and free in the Library is publishers. The fact that anyone can self-publish anything, and it doesn't have to be good to do so, is the stigma that self-publishers seem to have to live down.

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  13. I have 16 traditionally published books under a different name, and I'm now self-publishing. I'm pricing my self-published books at 2.99-3.99, and I don't value those books any less than the traditionally published ones that sell for $5.99 paperback or $16 hardcover. (And I value my personal work on a lot more than the flat fee, work for hire work aimed at libraries, which sells for $25.)

    Publishing is a business, whether you go through a big publisher or do it on your own. (So is art, for that matter, unless you have a patron or get a lot of government grants.)Pricing is a business decision.

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    1. Thanks for stopping by and commenting Kris! It sounds like I'm not too far off with choosing $2.99 to start and then working my way up (maybe) into a higher price point. It's odd how much emotion is involved in selling books. It is a business. The creating is a wonderful part, but the moment you start submitting or self-publishing, you have to put on a totally different hat and move from the right side of the brain into the left, in my humble opinion! ;)

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  14. A very good article and the comments are insightful as well, Lara. (I found your blog through The Word Shark (Karen S. Elliot) on Facebook.

    I was the publisher of work by other writers for 12 years. I am also a writer. So, I have struggled with this issue for both sides. I think 99 cents is insulting to writer and reader. I think $2.99 is fine as a "gift" to readers who don't know your work. $4.95 sounds like a good ebook price for a new author who hopefully has hired an editor (if he/she is self published) and has a good book. For someone more established and experienced, $6.99-$9.99 seems appropriate.

    I tend to compare an ebook to the temporary nature of a greeting card. Greeting cards in the grocery store, nice cards, seem to cost $2.95-$6.95. I think an ebook should cost at least as much as a greeting card. I don't know why I think this way, but for some reason I compare the two in my mind.

    Writers who self-publish without having their book edited (not just proofread, but edited) by a professional editor who charges a fee ($800-$1500) are doing themselves and their career (and their readers) an enormous disservice. I have cringed when friends I know have emailed me that their book is now available on Amazon, and (when I've gone there and bought it for 99 cents and downloaded it) I found error after error after error. Proof of a rush to publish, a dismissal of the role of an editor, and an eagerness that will backfire. I'm then in the awkward position of being asked to provide a review on Amazon or Goodreads or to like their FB page and share it with my friends. It makes me want to cry. They seem clueless.

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    1. Thank you for stopping by and adding to the comments with your dual perspective! You are so right there are so many things that cost a lot more than what writers are selling their books for. (sorry for the lousy sentence, I'm sick and can't think.

      There just isn't an easy answer - at least to me. A lot of the things people talk about (coffee from Starbucks, greeting cards, etc...) I don't buy either. I think 7.99 for a greeting card is outrageous. One of the teachers I work with has just had a baby, and she requested people bring books instead of greeting cards to her baby shower. As far as what people buy, it just depends on what they want and how much they're willing to pay for it. But if you have a quality product, people will be willing to pay more, so I agree, editing is important!

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  15. Really thoughtful post.

    My only two cents from the perspective of a reader is this: I have some free books I downloaded on special days that Amazon was offering, etc. i have not read one of them-even ones from more established authors. I do not know why.

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    1. I do the same thing. And I have no idea what that's about, either. :)

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  16. I'm late to the part as usual, but great post, Lara. I'm soon to publish a few short stories, and have been thinking about pricing as well. My thought is that clients of the Big 5 largely rely on the publisher's name to sell their work. Obviously, that's more true of first-time authors than the Grishams and Steeles of the world.

    But totally unknown writers (saw one in the mirror yesterday :-P) need leverage to get into the market. Without the presumed stamp of approval that a big label carries, lower (or reasonable, as I like to think) prices may offer that leverage.

    The acrimony surrounding ebook pricing reflects the country's debate over the "value" of things in general. For years I thought real estate and housing way overpriced. When the market burst, I sympathized with homeowners that lost money, but I felt like the collapse was merely an evolutionary adjustment.

    I think the same thing is happening in the publishing industry.

    Lastly, we independent and self-pubbers must be doing something right. The only way to devalue the status quo is to offer a product of equal or greater value for a lesser price. It's not our problem if readers decide to go for the buffet instead of (or more likely, in addition to) the overpriced chain restaurant. The burden is on legacy publishers to convince readers that $10, $15, or $20 is a fair price for digital fiction.

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    1. First, thanks! Pricing is a real conundrum, I think. I like you point about the general debate over the value of things. I know a lot of people who talk about shopping at Walmart like it's a horrible, trashy thing to do. I personally like the fact I can get a whole lot more groceries for $100.00 than I can at King Soopers. I don't think I'm trashy, either! ;) It's an interesting thought about the burden being on legacy pubs to convince readers to spend more money for digital fiction. I know the argument doesn't hold water for me.

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  17. I'm reading this after the fact, yes, but I want to say that as someone who isn't a fan of ebooks at all (I don't have an e-reader), I would never buy an ebook for more than $2.99 (except I did recently because somebody won it in my contest and chose that particular book), and the main ones I've bought so far have been $0.99, because why on earth would I pay more for a book I could get for the same prize in paperback on the Book Depository?

    This is a really important topic though, and one I've considered too, since I intend to self-publish as well.

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