Today’s blog post came out of a funny situation. 99 cent ebooks are all the rage, and have been for a while. This isn’t always a bad thing, but I once read and reviewed a book titled Connor’s Gambit. I absolutely loved it, and even told my mom she needed to read it. I knew she would love it. Her birthday rolls around, and my happy little self heads over to Kindle so I can send her this absolutely amazing book.
Imagine my surprise when I see that it’s only 99 cents.
Seriously? This amazing book, that I would pay about 8 bucks for, is only 99 cents? Less than a dollar?
I couldn’t believe it.
I had to convince myself that even though Connor’s Gambit was a buck, I still considered it worth my mom’s time to read. I even had plans to buy her more books, even if I forgot and didn’t actually do so. Thank you, ADHD Brain (#NutLife). I even included in my book review how much I would be willing to pay for said book, and that I was sad it didn’t cost more.
Why 99 cent ebooks don’t make sense
Say you go to Dollar Tree, because you need new makeup for the prom, or whatever. You have a limited budget, and whatever you buy is only going to get used once. So you spend a dollar on some eyeshadow, and some on lipstick, and whatever else your little heart desires. You don’t worry about the price so much, because you almost expect it to be crap. It’s only worth the one use. Now, translate that same thought over to an ebook. You see a 99 cent ebook on Amazon. What’s your first thought?
99 cent ebooks shortchange authors
In my research for this article, I read several others I found on the 99 cent ebook situation, and many of them said the same thing: Authors aren’t making enough to cover their time and other expenses by only charging 99 cents. I guess this price point is ok if an author has a full-time job they love, and write only as a hobby. But what about the authors who want to make a living by writing books? These authors want to be able to quit their job, and write all day long, like Stephen King.
Can you imagine Stephen King charging 99 cents for an ebook?
Authors deserve higher royalties
Most authors I know spent years, YEARS, writing their books. They’ve spent countless hours with beta readers, and editors, and more beta readers, and ARC readers, and all those other things in order to make their book worth reading. When an author puts their book at 99 cents, they are shortchanging all those countless hours they spent to give the world a wonderful story.
Now, if you’re not willing to spend all that time on your book, and you want to publish your first draft, then by all means charge 99 cents. That’s pretty much what it’s worth at that point, anyway. But, the royalties on a 99 cent ebook is only about 34 cents. You deserve so much more than that for all your hard work.
Now, I don’t sell ebooks on Amazon, but I do create journals to sell over there. When I’m figuring out what I’m going to charge, I look at 2 main things: The cost to print, and my royalty. If I want to make at least $2 on each journal, I have to charge a certain price for each journal, based on the printing cost.
Buyers place value on price
When was the last time you went to Nordstrom, or Saks, or even JC Penney? You probably shopped there because while the prices are higher, you assume the quality is higher, too, right?
(Not always. I’ve bought expensive panties at Victoria’s Secret that fell apart in a week. Bought two pairs of shoes that lasted 2 months tops. But most of the time? Yeah, it’s better quality. Just be careful buying from VS.)
Why then, do authors think it’s fine to price a book, that someone will hopefully spend minimum 3-4 hours on, depending on their reading speed? I can read a full-size book in about 4 hours with no interruptions. On a book that cost me a buck, I’m spending 25 cents an hour on entertainment. As a reader, that’s a pretty good deal. But it does nothing to increase the inherent value I’ve placed on that book. I’m not likely to go to my friends and insist they buy the book. Connor’s Gambit was the rare fluke in that regard.
When was the last time you told your friends they just HAD to race over to Payless, to get this pair of shoes on clearance before they ran out? Probably never, if you’re anything like me. A pair of shoes on clearance is something that makes me happy, but I’m only likely to brag about the price if someone compliments them.
Authors have to sell more books
Several of the articles I read on this subject actually broke down the math on why it’s impossible to make a living selling 99 cent ebooks. Since I suck at math, I’m not going to do that. I will say, that in order for an author to make 15 dollars an hour, what is considered a living wage at this point, they would have to sell 45 books every hour.
For most indie authors, this is just not doable. Not counting all the money they would have to spend on promotion, and would have to sit on their computer promoting pretty much constantly. It’s just not feasible.
But, if same author priced the ebook at 2.99, this would add about 1.32 per book to their royalties, lowering the number of books they would have to sell to 12 books every hour. Still not great, but more easily done. Take that book cost up to 4.99 or more, and….you see where I’m going with this. By valuing your time, and valuing the product you’re selling, you’re doing yourself and the world a huge favor.
Red Flag to Readers
The 99 cent price tag on ebooks is a neon sign to readers. It screams, “SELF PUBLISHED BOOK. READ AT YOUR OWN RISK!” Now, yes, pretty much all books are read at your own risk, and I’ve read trad pub books that are absolute crap. That doesn’t mean people don’t turn out in droves to pick up Stephen King’s new book, or the new John Grisham thriller. They pay way more than 99 cents for them, too.
When you see a book on Amazon that’s 8.99 or more for the ebook, chances are it’s trad pub. Self-published authors see their lower price point as being competitive, when in fact it’s the exact opposite. Let me give you an example:
My sister, several years ago, started working with the Amazon FBA program. FBA stands for “Fulfilled by Amazon.” In this program, shoppers go out and find things on sale, then ship them to Amazon and determine a price for the sale on Amazon. Amazon holds the items in a warehouse, and when someone makes a purchase, Amazon ships the item out, and the original shopper (my sister) receives a percentage of the sale price. It’s a pretty good deal, if you can find things that will sell.
Amazon FBA is also highly competitive, because you can find 35 people or more selling the same exact item. What happens if someone undercuts the other sale prices by lowering their price to unheard of amounts? For example, a notebook sells for $14.99 from 15 sellers, and someone comes in and prices theirs at $4.99. Yeah, they might make a sale quicker, but they also don’t make as much on commission, and Amazon will flag them for undercutting.
The goal around FBA, and the goal around making sales, is to price your items within a dollar of the highest price. So, for the above book, the top price is $14.99. Sell yours for $14.72. It’s still going to sell quicker, and will likely make it into the “featured” section, but Amazon won’t flag you for undercutting.
Do you see where I’m going here? Trad books take into account ALL costs related to that book. Editing, proofreading, marketing, time writing….everything. Then they determine a price point for the book, whether ebook or hard copy, based on what they’d like to see for a profit. When an author prices their book at 99 cents, they’re screaming to the world that their time isn’t valuable.
Marketing and Promotion sells books, not price
I have tons of friends on Twitter who have written books, and have priced their books at about 4.99 for the ebook. Then, they spend TONS of time talking about said book, and finding people to go check it out, sharing snippets, etc. Their efforts aren’t a waste, because it’s all that fun information you get about a book that tells you whether you want to buy it. When was the last time you saw a book you really wanted? The story was compelling, it was well-crafted, the reviews were positive, and you knew you would enjoy the story. Then, after all that, you decide you don’t want it because it’s not 99 cents.
No. If it’s something you really want, you find the money, or you save for it. Yes, 99 cent ebooks fall into “impulse buy” space, but how many of those people make that impulse buy, then actually read the story and share it with their friends? I’m going to say not many.
Options for Authors and Readers alike
Instead of pricing your book at 99 cents, here are some options to use instead of price to hook your readers into purchasing or reading your book.
Authors: make sure your book quality matches the price you’ve set
I was on Twitter several months ago, and an author was asking if he should raise the price on his ebook. My answer was, “YES.” Resounding, echoing, and howling for the whole world to hear. Then, I qualified my YES with this…”If you raise the price on your book, make sure the inside matches the price. If someone pays 4.99 for an ebook, and it reads like a 99 cent first draft, not only will you get a bad review, but said reader won’t ever read something of yours again.”
Here’s a couple good ways to enhance the quality of your book:
Hire a proofreader or editor
I’ve seen bunches on Twitter that are affordable for self-published authors, and I’m even one of them myself.
Hire a good cover designer
No matter what anyone says, we judge books by the covers. I’m telling you, I’m more likely to spend money on a book if the cover is amazing. I’ve also turned down books, despite the nice little blurb, because the cover was horrible. This is an investment that you want to make sure you do right. Canva has amazing options for cover design, and graphic designers can help you out as well.
Authors: Host Giveaways for free Kindle or signed copies
Everyone loves a giveaway. Even better is if you offer to have it signed, or offer some other type bonus along with the book. Even if it’s a book people haven’t really heard of, the thought of “winning” something very few people have is irresistible. Create hype for it by using words such as “limited edition,” “limited time only,” or others. You can ask the reader to leave a review if they like the book, but don’t make it the focus like you would for ARC copies. This is a gift you’re giving someone, not an obligation.
Readers: Request an ARC
Authors I know (and I know quite a few) have no problem giving away copies of their books in return for a review. They understand that reviews help drive sales, so the more they get the better their sales could potentially be. If you can’t afford the heftier price point on a book, feel free to reach out to the author and ask for a review copy.
DO NOT FORGET TO ACTUALLY WRITE YOUR REVIEW.
I cannot stress that enough. If you are reaching out to an author to get something for free, and you agree to do something for them in return, do not forget to hold up your end of the bargain. If you do, the chances of you receiving another free copy in the future is pretty slim. Authors talk to each other, and when someone screws them over, they warn their author friends to run fast and far. Don’t be one of those people.
If you need ideas on where you can leave reviews, here are a few examples:
- Amazon
- Goodreads
- Barnes and Noble
- Bookbub
- Your personal blog or website
Readers: Ask for book money for any gift giving holiday
Christmas and Birthdays are the perfect time to get some of that coveted book money. Do you have a book you’ve wanted for months, but haven’t been able to afford? Grab that amazon gift card you got for your birthday and shop away!
I’ve been known to ask for amazon gift cards from my family for all gift giving holidays, and it’s so much fun! There’s no worry about whether it fits in your budget, because you know exactly how much you have to spend. Even with “1-click buy” enabled, Amazon will always use your gift card money first.
One final thing: If you have a book blog that you pay for, and have monetized, my accountant husband has told me that books are a business expense. You are essentially getting paid through ad revenue to promote books, so that income has to go somewhere. It’s a nifty little trick that I love to utilize all the time.
Now, in the example I gave above, about Connor’s Gambit, I have a feeling I know exactly why the author chose to price his book at 99 cents. He wants to make sure anyone can afford his book. But to that, I say this: If someone really wants your book, the price isn’t going to matter. That’s not to say that I agree with these 13.99 ebooks I see from trad pub authors, but it also doesn’t mean you can’t price at 4.99 or even 7.99.
Set your book at the higher price, so that you can get paid for what you’ve put into your stories. It gives you a chance to have fun with your readers and fans, and throw your book on the 99 cent shelf for a time to give them a break. I’m more likely to pay 99 cents for an ebook if the regular price is 2.99 or more. I feel like I’m getting a deal, rather than being forced to pay a lesser amount for something that is worth far more than that.
Check out this article from J. Scott Savage on his reasons why 99 cents is bad.
Why I Believe 99 Cent E-books Are Bad for Authors and Readers – J Scott Savage
Ok, you guys. That was a lot. I think I’ll hop off my soap box now, and let you move on with your life. What did you think of this article? I’d love to know your thoughts, so please leave a comment below! I respond to every one, and get so excited when I see one pop up! I’d also love if you share this post with your friends on social media, especially if you think they’ll get some value out of what I have to say. My goal is to help you promote, not give you more headaches. I absolutely adore indie books, and read them all the time. If you’d like to connect with me and chat about books, you can do so on the following social media channels:
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Until Next Time, Friends!
Thank you for your kind words on my book Connor’s Gambit. I’m glad you enjoyed it. I hear what you are saying about charging more than 99c, but I want to make my book accessible to more people. I’m not sure more people would have bought the book if I asked for more.
Going broke for the masses,
ZGottlieb
I’m so glad you have a reason for pricing your book that way. I may not agree necessarily, but I respect your opinion and your choice. I will always promote it no matter the price, because I think it’s an amazing book.
You definitely have a point here! I know many authors are willing to charge 99 cents for the first book in a long series because readers are more likely to impulse buy something cheap and if the book is great then they might end up hooked! However, there are definitely lots of self-published authors like, Elise Kova, who have always charged more and their books higher quality as well. She has these amazing covers and the books just feel special. So, there is definitely some truth to “you get what you pay for.” Even though her high price point is still only $4.99 for an eBook!
4.99 is still pretty cheap for an ebook, but it’s better than a buck. I get putting your book on sale for free or 99 cents to grab those impulse buys, but having your book at 99 cents every day is just punishing yourself.
Another author and I were just having a discussion on Twitter about book prices. He brought up “The Magic Bakery,” which had some good points to make about pricing and other aspects of publishing. If we authors think of our books as pies being sold in a bakery, it’s easier to think about how we should price what we’re selling — and make other business decisions about our books. I couldn’t help but think about all the above when I read your post. 🙂 Thanks for sharing!
When I first started making candles, I did some research by watching video of other candle makers. I wanted to make sure I wasn’t over or under pricing my hard work. The best advice I saw was take the cost and for retail, x4 and for wholesale, x2. Now, I get that the same method doesn’t apply necessarily to a passive income item like an ebook, but at the same time, I’ll always think the author is seriously shortchanging themself by charging less than optimal price. It’s so important to take into consideration the time it took you to write the book as well.
Thank you for that informative article. This is exactly how my wife and I thought when we set the price on our books.
You’re very welcome! I had a lot of opinions on the matter, as you saw. I hope it helps authors quit shortchanging themselves.