# The $0.99 Philosophy



## Archer (Apr 25, 2009)

One of the more difficult decisions faced by any Kindle author involves pricing. I'm a relative newcomer to KB, and (2/3 of) my books have only recently become available in Kindle format. When I first priced (name of book removed to stave off accusations of shamelessness), I got a lot of advice from my friends who buy Kindle books (I do not yet own one, alas!). After considering their input, I priced the book at $3.89. I thought, 'Well, it ought to be worth THAT, surely!'

A few people agreed; I sold perhaps ten copies of (book) at that price (thanks mostly to the efforts of my friends Kevis and Tanner, who made sure KB knew about it). Then Kevis told me of the success he was having with his 0.99 price, and I reconsidered.

There are a lot of titles available on the Kindle for 0.99 (or even less), and they are worthy reads. Carolyn Kephart's books, Kevis' books, Ed Patterson's books...the list is long and illustrious. Why not join them?

Within a week of reducing the price of (book), I had sold 100 copies. It takes a long time to sell that many print copies. It takes a three-day convention. It takes two book-signings and a lot of promotion surrounding them. Here, it took a week of NO effort. No cost to me.

What does EVERY indie want? (What, for that matter, does every _author _ want?)
Readers. Plain and simple. We write to share with them (that's why I write, anyway). The tally for (book) since being reduced is now approaching 300 copies. Things have slowed down...now selling only one or two per day, but, hey!

What's the point of all this? Well, I've heard several new authors stating that they shouldn't have to lower themselves to such a level. They believe their books are worth more. Well, so do I, but that's not why (book) is 0.99. I'm a relative unknown in any reality (excluding Terre Haute, IN, where I am probably the best known fantasy author who actually appears for book signings. Ha!). I WANT NEW READERS. In order to entice them into taking the chance on a new author, I make it an easy decision. Between the reviews, the writing sample, and the low price, readers have little to lose, and hopefully much to gain. Why do I care if they get more than their money's worth? That pleases me, actually.

The book is not inexpensive because I'm 'desperate.' I'm not. If it gets more readers to take the journey with me, I'm IN! In my view, the price of a Kindle book is not a reflection of quality--it's a reflection of the author's willingness to share his/her work with as many readers as can be enticed into it.

Thoughts, anyone?


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## Lynn McNamee (Jan 8, 2009)

My contention is that a new author should price their first book as low as $.99 to entice readers to give them a try.

Any books after that should have the price raised exponentially, i.e., the second book at $1.99 or so, the third at $2.99, etc.

Even the big publishers know this. They set the price for the first in a series as FREE, causing readers to get it just because it's free. Then, the readers, assuming they enjoyed the book, purchase the next or rest of the series at the regular price.

Also, with the $.99 novels, I think the price can be raised a little after some initial exposure and good reviews.


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## Frank_Tuttle (Jul 1, 2009)

All of my books that go through the publisher have prices set by them, and they're more than 99 cents.

The one offering I've put out myself via DTP I priced at 99 cents.  I'd have priced it lower, if I'd been able.  Not because I think it's deserving of such a low price, but because I wanted to make it available to any budget, no matter how small.

I wanted to do that because I thought it would be fun.  I wasn't banking on any significant income from the sales.  I wasn't even sure if there would *be* any sales.

But there have been sales -- quite a lot of them, in fact.  Do I regret pricing it so low?

Not a bit.  In fact, I'm getting a companion volume ready to self-publish right now, and it too will be priced at 99 cents.  It's a win-win, at least for me.  I get to check my DTP dashboard and watch the numbers rise, and people out there get a few smiles and hopefully a shiver or a chuckle too, all for less than a buck.

It's a lousy way to get rich, but a great way to share your works with new readers.


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## Athenagwis (Apr 2, 2009)

I think you got some good advice on pricing. Excluding your time to write the book, the eBook essentially has no hard cost to you. So when you had it at $3.89, you sold 10 copies, which grossed you $38.90, but when you brought it down to $.99, you had 100 copies sold, that's a gross of $99.00. That is economics at its best. You need to find the happy price where you have the greatest gross profit, a balnce between price and number of people buying at that price. Obviously $3.89 wasn't it. But you also hit the nail on the head with the number of readers, if you aren't planning on being a one book author, the more people you can get to read your first book, the more likely you will get a sale on subsequent books at a higher price. I think you would much rather have 100 readers hooked and buying your next book at $2.99, then 10 readers hooked buying your next book at $2.99. (Gross on first is about $300, on second only about $70 &#8230; big difference!)

I actually have your book in my sample list to try out (since you won't link, I will &#8230;. http://www.amazon.com/Elfhunter-Tale-Alterra-World-That/dp/B001R4CJDE/ref=sr_1_1?ie=UTF8&s=digital-text&qid=1249570018&sr=1-1  ) and I have heard great things about it, so in your case, I do feel I am getting way more than my money's worth with your book, but if I enjoy it as much as others, I will try to reciprocate with subsequent books. So I think you made the right choice!

Rachel


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## Cowgirl (Nov 1, 2008)

Some of the best books I've read on K1 have been .99.  I don't relate price with quality. And for .99 I rarely download just a sample ... for that price I buy it. I certainly have paid a lot more for DTB's that I never ended up reading or weren't worth reading.


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## Frank_Tuttle (Jul 1, 2009)

The new e-book I'm about to self-publish is a compilation of short stories that were all published back in the 90s.  One of them originally sold for more than two hundred bucks.  

So you never know what you might find in a 99 cent e-book!


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## Kevis Hendrickson (Feb 28, 2009)

Archer,

How strange life works! After reading a post last night in which it was mentioned that the author should not have to lower their book price because it was worth more than 99 cents I was going to create this very thread. But I decided Kindle Boards has had too much drama lately and decided to let sleeping dogs lie. But since you created this thread anyway, I might as well give my two cents.

Anyone who has read my thread lately knows that I've been thinking about raising the price of my books from 99 cents. The reason being that there are many people (authors and readers alike) who equate quality with price. Because my book sales had been stagnant I was of the belief that people might think that my books are not worth buying because of the low price. Very few writers make enough from book sales to support themselves. I think most of us write because we enjoy telling stories. I have several sock drawers filled with unpublished work. But I never intended them to stay there. I write to be read. Who wouldn't want to be able to sell their books by the truckloads at a high price to gain more royalties? Way I see it, the more money an author makes, the more time he or she can spend writing instead of worrying about how they are going to pay the bills.

But I'm in this game to get readers as are most of the other authors here. I am more than willing to keep my book prices low in order to share my work with readers. For the life of me, I can't understand why an author would prefer to sell 5 books at 9.99 over the course of six months rather than 200 books at 99 cents. Yes, an author should be compensated for their labor. But isn't having your work read more precious than making a few extra bucks per book? Seems to me that pricing your introductory book at a low price is beneficial to both the author and the reader. The reader gets to take a chance on a new author without much risk. In the process, if the reader likes the author's work, they will gain the trust of the reader who will be willing to spend more money on the author's other books. IMHO, the 99 cent philosophy is a practical way for an author to build a readership. In the end, every author has to ask him/herself why do they write. If it's to be read, then it shouldn't be a big deal to lower the price of your book to a reasonable price. But if it's too get rich coming right out of the gate, then in my opinion that author is not going to be compensated for their work in money or readers. That's my two cents anyway.


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## Chad Winters (Oct 28, 2008)

As a reader.....i am much more likely to take a chance on an unknown or indie author at .99 cents if the book sounds intereresting than if it is 9.99. There are a more books out there than I can read in my lifetime and I am rarely going to by a 9.99 indie book with few reviews (you have to admit there are a lot of bad books out there!)

Don't forget that your book is a grain of sand on a beach at this point. My TBR shelf is like 30 pages deep on my Kindle now and I am definitely gettting more selective. If its and interesting looking bargain I will pick it up, otherwise my limited book budget is going to completing series I have already started or books from authors that I know I want.

just my 2 cents!!

P.S. 
Several of the "bargain" books I have found from authors on this board have been real gems, but I probably would not have tried them if they had been 5 dollars or above. Its just the way it works....


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## Lynn McNamee (Jan 8, 2009)

I posted this on another thread, but I think it will find a better home on this one:

This is an opinion from a prolific reader and a someday author: I read A LOT. So, I have to budget myself a bit when it comes to books. Therefore, I tend to buy about 2 $9.99 books a month, along with a ton of Indie ($.99-$2.99) books throughout the month to feed my 'habit'.

Now, when I am ready to pick out my $9.99 book, I look to bestsellers and my favorite authors. So, I have to say "No", I will not be buying a self-published work with my twice a month $9.99 allotment. I just can't risk it.

Why 'risk'?  Well, unfortunately, there is absolutely no one to moderate what is published as a 'book' on Amazon. I have been burned too many times by people who think that they don't need to edit before publishing to spend that much on an unknown author.  Fair?  Absolutely not. But, at least with the books I am referring to, I only felt like I 'lost' less than $3. Do I sometimes buy a bestseller $9.99 book and not like it? Of course!  But, it is less of a risk.

I can also buy some older novels from bestselling authors for as low as about $6.50; these are tried and true books.

So, I guess all I am trying to say is that, when pricing your book, think about the competition.  If your $9.99 book comes up on a specific search listed right next to Stephen King and John Grisham's new releases for the exact same price, which book do you think readers will choose?  

You may be the next King, Grisham, Rowlings, or whoever in your genre, but readers need to have a chance to find that out.


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## Kristan Hoffman (Aug 6, 2009)

RedAdept-

Thanks for that insight! I think your reasoning makes total sense, and is probably true for many readers.

As a young/unknown writer, I actually was surprised and a bit disappointed to find that the lowest I could offer my fiction for was 99 cents. I had originally been planning to start at 50 cents. So I ended up putting more in each item (I write episodic fiction so instead of bundling 2 at a time, I upped it to 4) and I think it's been working out okay.

Kristan


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## Archer (Apr 25, 2009)

Kevis, my dear friend and comrade-in-arms, I am in no way disparaging the authors who have voiced their (perfectly legitimate) opinion about 0.99 books. After all, my gut reaction was the same at first.  I am attempting to benefit them, should they read this thread, with the accounting of my own experience. I also wanted to hear what my target audience (which is anyone who can read) of Kindle-folk had to say concerning the issue of price point, and they have come forth with really sound and sane opinions, as usual.

My evil plan is to bring forth book 3 (didn't get it done last weekend due to working on website), and sale price it for a week. Then, I'll consider what to do with it. I might keep it there...sort of a reward for staying with the trilogy all the way to the end.  Main point is made--I will have readers, hopefully happy ones. No book appeals to everyone, but we knew the job was dangerous when we took it. 

'Archer' 

(Athenagwis--thanks for the link!  It's not considered shameless when YOU do it!)


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## Kevis Hendrickson (Feb 28, 2009)

Archer,

No disparaging here in my corner either. I avoided creating a similar thread to this one last night because I didn't want anyone to think that I was singling them out. Truth is, every author has to grapple with the price situation and I can understand why some of us would be reluctant to sell our books for cheap. Our books are our children and there are very legitimate reasons for not selling one's book for bargain price. But like you, my only goal is to help foster this discussion so that everyone, myself included, could get a better understanding of what our readers want. And based off of the number of participants in this discussion thread, the readers have spoken. I, for one, am taking notes.


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## geoffthomas (Feb 27, 2009)

I want to point out that the $.99 price will provide new readers.
The $.00 price will get a lot of sales but not necessarily readers. (download and put on the to be read list) There is a lot of this on this forum.

If I am inclined to read the book, for instance Robin Hobb's Assassin's Apprentice, I will definitely do so for either the $.00 or the $.99 price.  Having read this book, I will now pay the $6.39 asking price for the second volume (even though I don't really want to pay that much).  Now I should also say that while I will read the trilogy, I don't know if I will go on to the second trilogy and probably will NOT go on to the third trilogy.  Not for $6.39 per volume.  Good books, but not superb.  Robin Hobbs is not reachable by me on the internet. (More about this point later)

I will pay what it takes to read C.J. Cherryh's books.  This is also true of Raymond Feist and Terry Brooks.  And by the way I can go to her site and "talk" with her on her blog - which I do. But I would pay retail to read her books without this. (this is some more of that point). 

There are some writers (even resident here on KB) that I have spent either the $.00 or $.99 for the first book.  In one case I did not finish the book. And in the other case I finished it and found that I shouldn't have (it never got better).  In both cases I will not download further work, even for free.
There is a remote possibility that because of communication here on KB I might try again.

For books that are a little out of the "must read" genre that I frequent, the low price is an inducement to try the books.  I did this with Thumper's book Charybdis. And then was willing to pay more (though I did not have to) to read the next books.  And it helped that I felt like I new her.

RJ Keller had a $.99 price on Waiting For Spring.  There had been a couple of good recommenations and so I tried it.  Now I have made a point of posting my mini review and between the good reviewers more people have indicated that they will try it.  A small snowball.  But alas there is no follow-up to read.  But she can charge more than $.99 for the next one.  And even though this is not my sweet spot, I will purchase and read.

Carolyn Kephart had a $.99 price on both the Wysard and Lord Brother books.  Good reads and I would have paid easily $1.99 or $2.99 for the second one. But I will anxiously await the next one.

You have had a great marketing strategy.  $.99 for the first book.  Quite good - have I said that before?  And then the $.99 temporary teaser for the second.  (My advice is to go ahead and raise the price to at least $1.99 now that the original time-period is up).  Your reward to existing fans is a nice idea but if we miss the special, a little higher price is no burden for an author and work that we know that we enjoy.  And if you make the same offer for the third book, I will snap it up.  But I will pay more for it anyway.

And I should say that I started on Boyd Morrison's Ark and Jeff Hepple's The Treasure of LaMalinche  and Mike Hick's In Her Name because the price was that entry value $.99 for the first and because they had been posting intelligent and friendly to the threads here in KB and I felt that I knew them.  And the quality of their writing in the posts impressed me.

The short answer is that Red-Adept said it for me.

Just sayin.......


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## jrector (May 24, 2009)

> I've heard several new authors stating that they shouldn't have to lower themselves to such a level. They believe their books are worth more.


To who? Themselves? Their mothers? Do these new authors have a rabid fan base anxiously awaiting their... first book?

$.99 is the perfect price for a first novel on the Kindle. If it's good, people will recommend it and remember you. They'll search out your next book when it's available, and then, if you're lucky, maybe they'll be willing to pay more than $.99. In my opinion, first time authors need to be thankful anyone reads their work at all. No one deserves to be read just because they wrote a book. Whatever happend to starting at the bottom and working your way up? You know, earning what you want rather than assuming it's owed to you for showing up.

"Lower themselves..." Oh, please.


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## MikeD (Nov 5, 2008)

As I said on another thread, I don't read indie (or unknown) authors very often anymore because of time. As I approach the final third of my life I have realized that there are more tried and true books out there than I have time for. Experimentation does not fit well into my list of reading priorities. So, for me, time is the issue and not the price.

That said - there are exceptions.

Not long ago I tried



which was then available for $1.00. I loved it and immediately purchased the next 2 books in his trilogy. Did price play a role? Yes, in this instance it did. Had Mr. Weeks asked $9.99 for his book, I would not have tried it. $1.99? Maybe. But once I read the first book for $1.00, I would have gladly paid $9.99 each for the next 2 books.

So the idealistic POV that "My work is worth more than that" is a bit of nonsense, IMHO. Just like in any endeavor, one must pay one's dues before one can be successful.

The bottom line is that most writers want to be successful in the field of writing. To obtain readers. To make a living on the craft. In order to do that, sometimes one has to put aside the ego and take the initial steps needed to get recognized and develop a following. And sometimes that means setting the price low enough to draw readers that might not otherwise give the work a try.



Chad Winters (#102) said:


> ...Don't forget that your book is a grain of sand on a beach at this point...


Indeed.

JMO.


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## Archer (Apr 25, 2009)

It seems we are pretty much in agreement. When an indie author writes a book and publishes it, it's sort of like an inventor putting out a new 'widget.' Just because he took time, blood, sweat, tears, sleepless nights, and lord-knows-what-else to conceive, produce, and market the widget does not guarantee that a single person will buy it. 

When the late Billy Mays advertised a new product, he always offered it for a low price, two for one, that sort of thing. Our books are no different. We don't necessarily want to give away the product of years of effort, but we should understand that we must make the widget attractive to buy--almost an 'offer you can't refuse.'

Now, there are reasons that we cannot discount our print books beyond a certain level, as much as we might wish to. But Kindle books are different! They represent no cost--none! Therefore, it's easy to make the best offer to the readers. 

I don't think authors should be beaten up for valuing their work, and their expectations/goals might be different from mine. Perhaps 'lowering themselves' was a poor word choice on my part--it was the tone I got from some of their posts. But, remember--this Kindle thing has a learning curve. I know I have learned heaps already.  

As long as you don't assume desperation or lack of quality, I'm happy to offer my widgets at a very attractive price. (And, if I could, I'd throw in a set of 'Ginzu Knives.')


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## Athenagwis (Apr 2, 2009)

I would prefer the Perfect Chopper 3000, but I guess I can't be picky


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## telracs (Jul 12, 2009)

I love 99 cent books.  They make me happy to read something new for a good price.  That being said, I will also purchase indie books up to about 5 dollars, especially if they are recommended by someone here whose opinion I respect.  I understand that a book can be your baby, but if you've gone so far as to publish it, I assume you want people to read it, and especially in this economy, an incentive may be needed.  So, lower the price and you'll get more nibbles.  Especially if you're planning a series, lowering the price on the first book is a good idea.


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## Archer (Apr 25, 2009)

Athenagwis said:


> I would prefer the Perfect Chopper 3000, but I guess I can't be picky


Haha! If I had one, mate, I'd throw it in!

The only problem with 0.99 books, at least for me, is that I don't have a Kindle yet!


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## sierra09 (Jun 20, 2009)

On another board I read threads that argued with an author who offered his Kindle version for .99 or less saying it devalued it or something or would make a reader think the author wasn't valuing his/her work. I didn't agree with that for many of the reasons Archer listed. I think the purpose is more to gain a reader base first and if a low price tag, especially on an e-book, will do that then it's fine. While my Kindle version isn't .99 (it's $1   ) I've been happy with the results. 69 sales in a month makes me happy and since I've said in other places that I'm not doing this for the money if I could have sold for less I probably would have and I don't think I'm devaluing my work at this price.


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## Archer (Apr 25, 2009)

Sierra:
A WHOLE DOLLAR! Ye gods! 
(ha!)
When I sell enough Kindle books to buy a Kindle, I'll spend one of my dollars for 'Celtic Evil.'
Again...for non-kindle owners, dollar books are just plain torture!


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## Carolyn Kephart (Feb 23, 2009)

Chad Winters (#102) said:


> Don't forget that your book is a grain of sand on a beach at this point.


Thanks to everyone on Kindleboards who's taken a chance on my books, I feel a _lot_ more like a pebble these days. 

Gratefully,

CK


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## sierra09 (Jun 20, 2009)

I know. I've seen so many Kindle only books that I'd love to read. A Kindle has now taken over the top spot of my 'wish list' previously held by the X-box 360.


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## Carolyn Kephart (Feb 23, 2009)

archer said:


> Sierra:
> A WHOLE DOLLAR! Ye gods!
> (ha!)
> When I sell enough Kindle books to buy a Kindle, I'll spend one of my dollars for 'Celtic Evil.'
> Again...for non-kindle owners, dollar books are just plain torture!


My Kindle will be paid for by anything but my book royalties. I want the danged thing NOW, not next century. 

CK

Glad to see your own books doing so well!


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## Carolyn Kephart (Feb 23, 2009)

geoffthomas said:


> I will pay what it takes to read C.J. Cherryh's books. This is also true of Raymond Feist and Terry Brooks. And by the way I can go to her site and "talk" with her on her blog - which I do. But I would pay retail to read her books without this. (this is some more of that point).
> 
> Carolyn Kephart had a $.99 price on both the Wysard and Lord Brother books. Good reads and I would have paid easily $1.99 or $2.99 for the second one. But I will anxiously await the next one.


Since you compared my style to Cherryh's elsewhere on this forum, Geoff, I'm now wondering if I should emulate her further and enable comments on my blog. Disabling the Comment function might seem alienating, something I hadn't thought of until I read your remarks.

Volume Three of the Ryel Saga, when it appears on Kindle, will cost the same as its brethren do now. Fan base > bucks at this point!

With thanks,

CK


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## Archer (Apr 25, 2009)

Carolyn Kephart said:


> Thanks to everyone on Kindleboards who's taken a chance on my books, I feel a _lot_ more like a pebble these days.


Well, as you pointed out, Geoff likes us both. Therefore, we can die happy! 

(At the rate I'm going, I should be able to get a K-2 by Christmas? Maybe? I live in hope.)


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## Archer (Apr 25, 2009)

lk:  May you sell a thousand copies!


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## LauraB (Nov 23, 2008)

Archer, I want to sample your books is Elfhunter the 1st in the series or does it matter the order read?


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## Archer (Apr 25, 2009)

Red:
It matters, as this is a story told in three parts (a true trilogy). The first is Elfhunter. Fire-heart, the second book, is up on Kindle, Ravenshade is coming soon!

I hope you enjoy the samples.  

I also hope you are feeling better today.


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## geoffthomas (Feb 27, 2009)

Red,
Don't waste your time with the sample.
Just dive in and purchase Elfhunter.
For $.99 you cannot go wrong and trust me you will LOVE it.
Even if you are not a fantasy fan - this is just a GOOD story.
Elves are nice, but you can read this story and forget about them being elves, they are just interesting people.

Sorry to interfere but when I like someone's work, I believe in saying so.
Because when I don't I also say so.

And I like this book.

Just sayin......


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## LauraB (Nov 23, 2008)

geoffthomas said:


> Red,
> Don't waste your time with the sample.
> Just dive in and purchase Elfhunter.
> For $.99 you cannot go wrong and trust me you will LOVE it. .....
> ...


Thanks, I just bought it. I've really just gotten into the habit of samples to attempt to check formatting, but I think enough people here have read it that I can trust the formatting is readable at this point, weird how we get in habits like that and forget to think


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## Archer (Apr 25, 2009)

Geoff: I think I love you.

Seriously, though, (and I quote) 'for $.99 you can't go wrong' pretty much sums up the point of this thread. Plus, you might never have even sampled it for a higher price. Thanks.

Red: I hope you enjoy Elfhunter. When I formatted even the print version, I kept readability in mind.  Hope it is to your liking.
--'Archer'


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## Anne (Oct 29, 2008)

geoffthomas said:


> Red,
> Don't waste your time with the sample.
> Just dive in and purchase Elfhunter.
> For $.99 you cannot go wrong and trust me you will LOVE it.
> ...


I agree you will love the book. Don't waste your time with the sample. Just dive right in.


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## threeundertwo (Jul 25, 2009)

In general, if I even halfway think I'm going to enjoy something, and it's only 99 cents, I just go ahead and buy it rather than downloading the sample.

I've cut back on my Starbucks habit to feed my Kindle habit.  I think I'm actually coming out ahead.


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## Guest (Aug 7, 2009)

If a self-publishing writer wants to price their book at 99 cents, that is their business.  I think it is a mistake long term.  While it may generate immediate sales, it is not a price that is sustainable from a business standpoint.

If your goal is just to get people to read your stuff and you don't care whether or not you actually make a profit (or lose money), then stop reading.  Nothing that comes after this paragraph matters to you.  If your goal is to maybe one day have your own little publishing business and even publish the work of other people one day, keep reading.

==

As an indie publisher, I would go bankrupt if I promoted my products as 99 cents.  That is because that price structure would not support my costs.  Unlike a lot of so-called publishers, I actually pay my writers and artists (I know, I know...weird, right?)  Now I have spent years building a customer base.  I know that when I release a product is will sell a minimum of X number of copies.  I can make that assumption safely because I can look at my sales history or similar products.  

Now before I continue, I want to talk about my sales history.  My sales are generated based on actual marketing to my target market.  When someone buys a product, it is because they decided the product was a good investment of their money.  When you are selling books at 99 cents, your sales figures aren't neccessarily trustworthy in terms of planning.  Because as we have seen by comments in this thread and elsewhere, some people will buy just about anything at 99 cents.  That creates an artificially high sales count not based on actual interest or value.  

So I have a book that costs me $400 to produce after I pay writers, proofreaders, artists and anyone else.  Looking at my sales history, this type of product will sell 500 copies.  After taking the retailers' cuts out of the equation, I make a $1.99 profit per book sold on a $3.99 retail price.  Now my profit is slightly higher with some vendors and slightly lower with others depending on how much commission the retailer takes and any special promotions I might offer, but it averages to $1.99.  So I only need to sell 201 copies to break even.  Everything over that is profit.  So I can normally expect to have a net profit of $595 on the product.

Now if I reduce my Kindle prices to .99, as a matter of course I have to sell the book at that price everywhere.  Otherwise, consumers feel ripped off.  I can't continue to sell the same product at $3.99 elsewhere while selling it for 99 cents on the Kindle.  Now my average profit per sale is 50 cents.  Now I have to sell 800 COPIES to break even, 300 copies more than the product type normally sells.  Even if I triple my sales volume to 1500 copies, my net profit is $350.  If I sell 2000 copies, I'll just match my previous profit.  In short, the price structure forces me to sell more to maintain the same profit level.  

And there is no guarantee I will be able to quadruple my sales figures anyway.  That is because the people that might give the product a try at 99 cents don't have unlimited cash either.  They aren't going to buy an infinite number of things that "might" be interesting at 99 cents.  In truth, if they didn't see the value in the product at $3.99, chances are many won't see the value at 99 cents.  And the ones that do aren't going to come back and buy future products for more than the .99 cents they originally paid.  

Yes, SOME PEOPLE will.  But that number is a small percentage of an already small percentage.  Further, I've now potentially alienated my previously loyal customers that HAVE paid $3.99 time and time again for these type of products.


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## geoffthomas (Feb 27, 2009)

Julie,
I have several questions for you.
I have become very interested in this subject because of exposure to mainstream "published" authors and the indie authors here.

Ok, you are a publisher.
When you mention the established retail market are you referring to printed copies or other formats of ebooks?  I ask because if these are print books then I wonder where in your equation is the cost of printing, which clearly does not exist for Kindle books.

If you are talking about print books then I really don't see why there is a problem with those purchasers paying more for their copies than Kindle format purchasers pay.  After all the Kindle owner has paid for the "discount" by purchasing the Kindle that allows him to use the ebooks.  
I have other questions, but it is probably best to start out here.


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## Guest (Aug 7, 2009)

geoffthomas said:


> *****,
> I have several questions for you.
> I have become very interested in this subject because of exposure to mainstream "published" authors and the indie authors here.
> 
> ...


The majority of my business is in ebooks, specifically PDF format. We have a great many Ebook only format titles.

But really, the bulk of my costs remain unchanged between print and PDF. I don't use offset press, but POD for our print titles.

I'll give you an example.

I have a fiction book with a retail price of $13.99. I sell the ebook for $4.99.

My actual print cost is only $2.15 per book. However, booksellers generally demand 45-50% discounts, so in reality I only see $6.99 per book. Minus the printing cost, my profit is $4.84 per print sale.

So I sell the ebook for $4.99. But e-retailers also expect discounts. Some have relatively low percentages, 20-30%. Others still demand 45-50%. So if we average it, I'm looking at $1.99 to $2.49 profit per sale. As you can see, I've already discounted the electronic version to compensate for the lack of printing.

Whether it is print or PDF, the author still gets paid the same rate. Artists still get paid the same rate. Advertising costs don't change. Administrative costs don't change. A great many costs do not change from one format to the other.


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## MikeD (Nov 5, 2008)

An interesting take by Eric Fint, author and manager of the Baen Free Library. Here he talks about providing free books, but I think the same concept applies to $0.99 books. It is all about getting that reader to read the first books and then, if the product is good, they will come back with an open wallet.



> Common sense, applied to the practical reality of commercial publishing. Or, if you prefer, the care and feeding of authors and publishers. Or, if you insist on a single word, profit.
> 
> I will make no bones about it (and Jim, were he writing this, would be gleefully sucking out the marrow). We expect this Baen Free Library to make us money by selling books.
> 
> ...


http://baen.com/library/

Bold in quote is mine. Eric Flint gets it. First you build your customer base, even if it means taking a short term "loss" in order to drive future sales. Baen Books is a successful enterprise. This concept has only created additional sales, and has not cost them $$$ in the long run.


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## Archer (Apr 25, 2009)

Libraries are among my favorite places. If I think of my books as 'seed corn in the field of word-of-mouth,' the kernels that go to libraries generate a whole new crop of readers. They tell other readers. Ex.--I heard from one kid who found EH in his local library and has now given it as a birthday gift to every single one of his friends. A well-written, well-edited indie book is like a rock sitting at the top of the hill. To get the rock moving takes effort, but once it starts moving it will eventually begin to roll down the hill, picking up speed as it goes.  That's what I hope for mine. Once that happens, you're limited only by the size of the hill.


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## geoffthomas (Feb 27, 2009)

LK,
I agree with you, mostly.
The birthday gift (thank you very much) will get you readers that otherwise probably would not choose your work.  As an example I am debating over picking up a YA book that seems to be a good one by a respected writer that inhabits the KB here.  Because even for $.99 I am not sure that I even want to read a YA book. My experience thus far with them has not been a happy one.  Perhaps this one will work out ok.  -Actually I will pick it up because I want to find out- But it would be automatic yes if it were $.00 or $.01 or whatever.  And I would be happy to find it available for a three-day special.  That would make it an automatic purchase.
Now if I like it (or yours) then I will indeed buy further works by the same author.  And I would never have tried the author out without the financial incentive.

I bought Gertie's book because I love Gertie and would have tried her first book whatever it was.  I did enjoy it and look forward to her next one.
And I make a point of "speaking well" of the new authors I have discovered.  And I put the info up on goodreads and mobireads and amazon and here.

Now I am just one voice.  But you now have 354 possible new voices to speak about your work.  And you got them in one day.  We both know that not all are going to read the work soon. And now all are going to "REALLY" like it.  And not all are going to post reviews.

But some are.

Did I underscore your point?

I hope so.


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## MikeD (Nov 5, 2008)

BTW, speaking of the $0.99 concept, I just picked up Elfhunter (A Tale of Alterra, The World That Is). A few books will stay ahead of it on my TBR list, but I'll get to it in the next couple of weeks.


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## Carolyn Kephart (Feb 23, 2009)

archer said:


> Libraries are among my favorite places. If I think of my books as 'seed corn in the field of word-of-mouth,' the kernels that go to libraries generate a whole new crop of readers.
> 
> A well-written, well-edited indie book is like a rock sitting at the top of the hill. To get the rock moving takes effort, but once it starts moving it will eventually begin to roll down the hill, picking up speed as it goes. That's what I hope for mine. Once that happens, you're limited only by the size of the hill.


My books are in a lot of libraries (56, from Alabama State to Yale), but I still feel like Sisyphus. 

CK


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## Guest (Aug 10, 2009)

MikeD said:


> Bold in quote is mine. Eric Flint gets it. First you build your customer base, even if it means taking a short term "loss" in order to drive future sales. Baen Books is a successful enterprise. This concept has only created additional sales, and has not cost them $$$ in the long run.


But I think a lot of people are missing a point. Baen Books has a marketing plan far beyond 99 cent or free books. If you are using a special price as part of a _long-term marketing strategy, _ and you actually have the resources to enact said strategy, it can be useful. I've done temporary giveaways and special sales in the past as part of a long term marketing plan. I routinely give away free books for convention swag and contests. But the problem is it sounds like, for a lot of authors here, the only marketing plan they HAVE is 99 cents or free. It's the "throw enough crap against the wall and hope something sticks" mode of advertising.

There is a difference between marketing a BOOK and marketing a PRICE. When you market a book, you focus your marketing on the book itself...you sell the qualities of the book. You can then use a sales price to push someone over, but you sell the reader on the BOOK first. What I see a lot of in these forums is people selling the PRICE. *It's only 99 cents! You can't go wrong!* Well, yes, you can. If a restaurant I never heard of was selling 99 cent lunches, but not telling me what the lunch was, I would still go to my traditional lunch hangouts for my food even if it was several dollars more.


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## Lynn McNamee (Jan 8, 2009)

bardsandsages said:


> *It's only 99 cents! You can't go wrong!* Well, yes, you can.


I agree 100%. I have gone wrong with $.99 many, many times. I have also 'gone wrong' with $9.99 from commercially published work. 

I saw an author on the 'other forum' make a post that he was lowering the price of his book to $.99 for two days. Now, he had been advertising his book on various threads and I have no idea how many he sold doing that. However, I know that there were MANY posts of "Just bought it, thanks" on his thread limiting the time period that he had lowered the price. But, in that thread, he included a description of his book. He made it sound very interesting, so that readers felt they were getting a good deal.

People love a bargain.


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## MariaESchneider (Aug 1, 2009)

People do love a bargain and I've followed a number of publisher threads (galleycat is the main one) that discuss ebook prices.  They are not convinced they have to lower the price of an ebook to be competitive.  I do wonder if that will start to change?  (And I'm not counting BardsandSages who does have an e-book price strategy.)  It seems mostly the larger publishers that want to sell ebooks at the same price as hardback or paper back (Amazon has generally been the one that lowers the books to 9.99--it's my understanding that it isn't the publisher doing the discounting.)  

But as I've said on numerous other threads--I won't buy the ebook for full price.  I've bought a few at the 5 dollar range, but most of the time, I spend about 1 to 3 dollars (or free).  There's so many books out there, I just don't feel a need to go grab the latest bestseller at full price.  If it's a best seller, my library is going to have a copy.

Those are my random thoughts on the subject!


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## Archer (Apr 25, 2009)

Maria:

Oh, pity the poor indie who signed an agreement with a subsidy publisher allowing THEM to set the price of Kindle books! My friends who went through (shall remain nameless) and (also remaining nameless) are at the mercy of folks who don't understand the necessity of making unknown authors attractive. I've read their work--it's fine work and I enjoyed it--but with a Kindle price of 9.99, I have little hope for their success in the Kindle arena. 

I got lucky.


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## MikeD (Nov 5, 2008)

bardsandsages said:


> ...*It's only 99 cents! You can't go wrong!* Well, yes, you can....


Of course. And that is part of the whole point. I would rather go wrong at $0.99 than at $9.99. Earlier in my post I also made this comment:

"It is all about getting that reader to read the first books and then, *if the product is good,* they will come back with an open wallet."

A poor product will not go over well, no matter what you do. Hopefully, an author will learn from comments or reviews that his $0.99 book will generate and improve his product for the next go 'round.



bardsandsages said:


> ...If you are using a special price as part of a _long-term marketing strategy, _ and you actually have the resources to enact said strategy, it can be useful...


Again, my answer is "Of course". ANY marketing plan must be multi-faceted. Whether it is books or that restaurant with the $0.99 lunch special. And yes, that lunch special is "unknown" until you try it. The reason that almost all businesses use enticements of a pricing nature is to get the consumer to try something that they might not have tried otherwise. To build that customer base and create future sales. In this thread we are discussing just one aspect of what I hope our industrious indie authors are doing to get their product noticed and build that customer base.


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## LauraB (Nov 23, 2008)

bardsandsages said:


> but you sell the reader on the BOOK first. What I see a lot of in these forums is people selling the PRICE. *It's only 99 cents! You can't go wrong!* Well, yes, you can. If a restaurant I never heard of was selling 99 cent lunches, but not telling me what the lunch was, I would still go to my traditional lunch hangouts for my food even if it was several dollars more.


I understand what you are saying, and as a consumer I tend to shop that way. I don't write, only read, and my time is very important to me. I don't want to spend the _hours_ reading a bad book, that bothers me more than spending the money. Which is why I tend to not buy a book, no matter the cost, if I think it may not be what I want to spend _my time_ on. I went back through my Kindle and my accounts for books and, if I include the free book, my average price I've bought "purchased" for is $6.99. After I read the forums here and Amazon my guess is that I'm not average as far as getting free/low cost books because I don't want something cluttering my Kindle. But I will buy .99 cents books, I did Archers and have started it, I'm reading it on Kindle and Les Miserable on paper, and I like them both (for different reasons  ) 
As a reader I feel my greatest need, meeting it will push me from browsing to purchasing, is to have a sense of the flavor of the book before I want to risk jumping in and risking the investment of my time


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## MariaESchneider (Aug 1, 2009)

Red, I'd have to agree.  I started reviewing books a couple of years ago for BSCreview...and boy, at first, I was like a kid in the candy store.  There were lists of books we could choose from EVERY MONTH!  Wow!  Of course, after getting in every book that sounded even minutely interesting...I had to READ them.  And review them.  That. Was. Hard.  Especially if I didn't like the book because I'm one that doesn't typically bother to read the book if I don't like it. But since I requested it, I had to review it...groan.

Pretty soon, I was only requesting the books that I was pretty sure I'd like.  There were still some that I didn't, but I got a lot smarter.  Excerpts weren't really my thing for figuring it out--mostly I went by book description, reviews of other books by the author, and that sort of thing.  I've never been a excerpt person, but I've found that I'm getting to be one--if the book is available in e-format.  If I can "test" it and get it RIGHT THEN, I don't mind reading the excerpt.  But I hate reading the excerpt and then having to wait for the book to arrive.  So I'm careful about reading the excerpt--only if it's in eformat....!


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