In a recent blog post I referred to a marketing report that detailed the exploding market of ebook readers and the growth in the sales of ebooks. I just came across a draft that I had planned to share with you when Amazon.com seemed resistant to lowering the price of my kindle version of Oilspill dotcom from $9.99.
The basis of my argument was not just that the price was too high, but that I had another distributor, Smashwords, selling the ebook in all formats at $4.99. My kindle version of Oilspill dotcom was eventually reduced to $4.99 and actually began to sell. I have just noticed that Amazon.com have now further reduced the price to $3.19.
Fair enough. But this has got me thinking what exactly should the price of an ebook be? There are hardly any costs involved after the initial set up. There are website overheads, promotion etc., but no trees are being felled, replaced, distributed and returned.
For my recent birthday, friends gave me gift vouchers for Amazon, so that I could begin building a library on my newly purchased kindle. I am, now the consumer, finding myself dismissing anything over $10 on principle, and skeptical about a book over $5.
Jeff Rivera wrote an interesting article: Writers: Making a Living Off of Kindle? (Apr 19, 2010). He interviewed J. A. Konraith, the author of the Jack Daniels detective series. Mr. Konraith is making a living primarily off of his ebooks and is justifiably proud of it. He points out that he is making more from his digital books than his tree books (luv the name!). I will cover this article in the future, but want to share one particular aspect here.
Mr. Konraith sells his latest novels for $2.99. With Amazon’s new royalty system, he will make $2.04 off each book. He sells his older novels for $1.99. The idea behind this is that people will probably hear of his latest and read that first. After enjoying the book, they can go in and order 5 for $10. They are now packed for their vacation! Even if they order them one at a time, his books are at the price level of an impulse purchase for most people.
I love the idea of responding to the question of how much my book costs with: “Less than that cup of coffee you’re holding. And it doesn’t cool off as you read your way through.” Not sure I’ll persuade Starbucks to make my novel their Pick of the Month!
I would be interested to know what price you are willing to pay for a novel when you download to your eReader, computer, or phone?