ebook pricing

Ten Things You May Not Know About Ebook Prices

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This post by Rachel Willmer originally appeared on TechCrunch on 1/15/14.

How much should you pay for an ebook? $9.99? $0.99? $0? And how much should you price your ebooks? I’m going to tell you what people have actually paid for their ebooks, based on some hard data from Luzme. You can set the price of your book to be anything you want; what really matters is what someone will pay for it!

Last year, Luzme captured a large amount of ebook price data and reader pricing preferences. I am analysing this data and will share any interesting results.

I do not claim that this is representative of the whole ebook industry, but I hope that some real data might contribute something useful to the debate.

So here is my analysis of the actual prices that people have paid at Amazon in 2013, when they bought via Luzme.

USA
For the US data, I have normalised it against the “standard price” of $10.

Here is the way the various prices worked in terms of units sold. [Click on image to view an enlarged version in a new browser tab/window]

The most popular price points are at the low-end, with a local peak around the $10 mark, and then tailing off as the price increases.

This does not surprise me. But what I did not expect, is how much people will actually pay for an ebook (well over the $10 price! How much do you think the most expensive one went for? I will tell you later…)

Now look at the revenue over the same price points.

[Publetariat Editor’s note: this is where it really starts to get interesting – please click through on the link below to see more charts and an analysis of the comparative net earnings across various ebook price points]

 

Click here to read the full post on TechCrunch.

 

The Good And Bad In Chaotic eBook Pricing

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This post, by Mike Masnick, originally appeared on Techdirt on 10/8/13.

For years we’ve discussed the ridiculousness of ebook pricing, where some publishers seem to think that sky high prices for ebooks (often higher than physical copies) make sense, despite the lack of printing, packaging, shipping and inventory costs. And, of course, we won’t even get into the question of the price fixing debacle. Art Brodsky recently wrote a fascinating piece over at Wired about how ebook pricing is an “abomination,” because it’s designed to price people out of reading. He points out that we should think more about ebooks like we think about apps, since that’s a much more direct comparison than “books.” And then he gets into a discussion of how publishers are going crazy with their library pricing:

Take the example of J.K. Rowling’s pseudonymous book, Cuckoo’s Calling. For the physical book, libraries would pay $14.40 from book distributor Baker & Taylor — close to the consumer price of $15.49 from Barnes & Noble and of $15.19 from Amazon. But even though the ebook will cost consumers $6.50 on Amazon and Barnes & Noble, libraries would pay $78 (through library ebook distributors Overdrive and 3M) for the same thing.

Somehow the “e” in ebooks changes the pricing game, and drastically. How else does one explain libraries paying a $0.79 to $1.09 difference for a physical book to paying a difference of $71.50 just because it’s the electronic version? It’s not like being digital makes a difference for when and how they can lend it out.

 

Click here to read the rest of the post on Techdirt.

 

Kindle Singles and the Future of Ebooks

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This post, by Joe Wikert, originally appeared on his Digital Content Strategies blog on 10/21/13.

“Compelling ideas expressed at their natural length.” That’s Amazon’s tagline for their popular Kindle Singles program. And while Singles hasn’t exactly been a major industry disruptor I believe it lays the foundation for some of the bigger, bolder initiatives Amazon is planning for the future. I also believe it’s a model that will become much more common over time.

The formula looks like this:

1.End the practice of artificially puffing up content

The greatest aspect of Kindle Singles is, of course, their short length. The first one I read was a Single about media and I remember thinking how a typical business book editor would have asked the author to turn this 30-page gem into a bloated 300-page mess. It happens all the time and it’s a function of both physical shelf presence and perceived value. In the ebook world there’s suddenly no physical bookshelf an individual title has to have a spine presence on. Now we just need to stop equating “shorter” with “cheaper”…more on that in a moment.

2.Attention spans are shrinking

Face it. With very few exceptions you’re probably thrilled to read all this short-form content that didn’t exist 10 years ago. Blogs, no matter what they’re called, are very popular. Then came Twitter with its 140-character bursts of information. Let’s also not forget about all the other terrific short-form content services like Byliner that we’ve grown to love. Shortened content is also why The Week is such a popular magazine. Kindle Singles is just tapping into our desire to find the Cliff’s Notes on everything so that we can quickly read it and move on.

 

Click here to read the rest of the post on Digital Content Strategies.

 

Are #Indies Getting Clobbered by Big Name E-book Discounts?

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This post, by Toby Neal, originally appeared on her blog on 12/4/13.

I think we are. And, it’s a great time to be a reader and shopping for e-books!

The DOJ price-fixing case with Apple and the Big 5 publishers was settled awhile ago, but September was when Amazon began really discounting big name books. I get several email lists of discounted books daily in my inbox, and I’ve been agog to see big names like Janet Evanovich, Louise Perry, Michael Connelly, Patricia Cornwell and most recently, Donna Tartt’s Goldfinch, one of the Best Books of 2013, going for 2.99 or less.

I’ve bought more books than ever. More books than I should—but who can resist stockpiling these gems for a rainy reading day? I got the entire Game of Thrones set for around fifteen dollars! *goggle* If there’s ever a Zombie Apocalypse, I’ll be holed up in my bunker with all my ebook treasures, reading until the battery runs out!

Many of these have been older titles, but in preparing for Christmas, Barnes and Noble and Amazon seem to be pulling out all the stops and there’s no book whose price they won’t slash.

And in September, my sales went to half of what they’d been. They’ve stayed at half what they’d been in spite of doing active marketing, ads on Kirkus Reviews, giveaways, promos in those same lists I get in my email inbox, and launching two new books.

It’s like being the wimpy kid at the beach in that old commercial from the comics, getting sand kicked in your eye. Cheaper pricing was our advantage as indies.

I predicted this would happen in this blog post. In fact I’m surprised it took this long to happen. I’ve been asking around to other indies and they’re reporting similar dismal sales. So what can we do?

I’m going to keep doing what I’m doing, and diversify. Here are some ideas to try:

 

Click here to read the rest of the post on Toby Neal’s blog.