# How do low book prices affect your future likelihood of paying a normal price?



## Valentine Cawley (Sep 18, 2010)

Dear All,

Many authors on Kindle, are pricing books rather low. Some are as low as 99 cents. The new floor, however, will probably tend to be $2.99 given the Amazon 70% royalty scheme. Now what I was wondering is whether such low prices will affect what you are willing to pay for an author's books in future. Would you always expect to pay such a low price for their books? Or would you treat each book as an individual project, and pay whatever the price is asked, each time, if you wish to buy it?

I think this is an important question, so please reflect a while and give honest answers. Are authors destroying their future earnings by using discount prices to introduce readers to their works...or does it do no long term harm to their ability to charge a reasonable price for a book? Please take a moment to vote, since this is an important matter for all Kindle authors.

Thank you in advance for the effort you take to vote. Please also write your thoughts on low pricing and its effect on future acceptable prices, below.

Kind regards

Valentine Cawley, (writer)


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## D.A. Boulter (Jun 11, 2010)

I bought a book put on sale by Baen Books for $1.99.










It was a limited $1.99 Edition and my introduction to Elizabeth Moon. I probably wouldn't have bought it otherwise. I enjoyed the book and went looking for other books by that same author. I have about 10 or 11 of them, now, all bought at full price.

Does that answer your question?


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## history_lover (Aug 9, 2010)

Valentine Cawley said:


> Would you always expect to pay such a low price for their books? Or would you treat each book as an individual project, and pay whatever the price is asked, each time, if you wish to buy it?


I would treat each one individually. If the second book is longer or required more research or even if the author simply feels it's better than the first, I would expect to pay more for it. However, I wouldn't have a problem paying more than $2.99 for a debut book either. I've said this before on this forum but I think pricing books too low -regardless of whether it's their first books or not - can do authors a disservice as it shows they do not value their work. I expect a cheap book to be of lower quality than a more expensive one - that is not always the case of course, sometimes I buy a cheap one and I'm pleasantly surprised, sometimes I buy a "normally" priced book and I'm disappointed. But there is something to be said about the phrase "you get what you pay for".


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## Indy (Jun 7, 2010)

I replied "less than full price always" because it's closest to the average of what I pay.  In reality I will use freebies and such to see what I like, and if I like an author well enough, I will pay more for something else that they wrote.  I may not pay 9 dollars for an ebook right then, if I spent enough this month I will wait a month or so to get what I want.  But the vast majority, I would say 80% of my stuff on my kindle is less than $3.  I have 198 books.  Over 100 of them were free, about 20 of them were over $3.  

This does mimic my pattern with DTB's so it's not an ebook phenomenon.  I got library books.  I also shopped the goodwill store frequently and would spend less than $10 on two months or more worth of paperbacks.  I would only buy full price from the bookstore, things that I wished to never get rid of and certainly reread.  I still averaged very low prices on DTB's.  The difference with e-books is that the volume of purchasing has increased because I read more.  Also that one click thing is kinda dangerous.


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## Guest (Sep 25, 2010)

http://www.kboards.com/index.php/topic,37421.0.html Go see this and read *Moses's* blog that is linked there. It is a well written in depth discussion on the subject at hand.


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## MariaESchneider (Aug 1, 2009)

I've said it before--I always bought books at very low prices because I bought most of my books used.  I'm now spending about that same amount per book, only getting them via Kindle.  When a book was too high, I got it from the library or did without.  It is true that I have been able to get a few more free books than I would have otherwise than with Kindle.  But I've always had a pretty hard consideration point at between 6 and 8 dollars.  When paperbacks largely went to 8 dollars, I started using Amazon's 4 for 3 with free shipping.  So the low-cost books are just easier for me to find via Kindle.  If I love an author, I'll spend the 8 bucks, but even for a loved author, I read hardbacks from the library.  If I wanted my own copy, I just waited until I found the hardback used or it went on remainder.


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## telracs (Jul 12, 2009)

Every book is an individual purchase and I don't look at how much I paid for an author's work in the past.  

On a tangential note, I have to admit, I am a bit tired of people saying that if authors sell their work at a certain price they are "devaluing" their work.  Each author has to decide how much they want to sell for, and if someone feels their work is worth 9.99,  good for them. And I hope they sell lots of books (no sarcasm intended, I really hope every author sells lots of books).  But don't make judgement calls about what other people do. I think authors who tell others they are devaluing their work are doing more harm than good but making people question their decisions.  Everyone needs to do what they feel is best for them, and not second guess other people's decisions.

Also, what's "full price"?  Isn't that whatever the author decides to sell the book at?

I buy 99 cent books, 2.99 books, 4.99 books, all the way up to 9.99.  As I stated above, each purchase is individual, based on how much I want the book, low long the book is, and if I like the author, but not on how much I paid for the last book.


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## Sandra Edwards (May 10, 2010)

scarlet said:


> Every book is an individual purchase and I don't look at how much I paid for an author's work in the past.
> 
> On a tangential note, I have to admit, I am a bit tired of people saying that if authors sell their work at a certain price they are "devaluing" their work. Each author has to decide how much they want to sell for, and if someone feels their work is worth 9.99, good for them. And I hope they sell lots of books (no sarcasm intended, I really hope every author sells lots of books). But don't make judgement calls about what other people do. I think authors who tell others they are devaluing their work are doing more harm than good but making people question their decisions. Everyone needs to do what they feel is best for them, and not second guess other people's decisions.
> 
> ...


Queen Scarlet is wise and all-knowing!


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## telracs (Jul 12, 2009)

Sandra Edwards said:


> Queen Scarlet is wise and all-knowing!


Thanks Sandra. I will accept wise, but definitely not all-knowing, or I'd have won the lottery by now. Or maybe I know that money won't buy happiness?


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## intinst (Dec 23, 2008)

scarlet said:


> Every book is an individual purchase and I don't look at how much I paid for an author's work in the past.
> 
> On a tangential note, I have to admit, I am a bit tired of people saying that if authors sell their work at a certain price they are "devaluing" their work. Each author has to decide how much they want to sell for, and if someone feels their work is worth 9.99, good for them. And I hope they sell lots of books (no sarcasm intended, I really hope every author sells lots of books). But don't make judgement calls about what other people do. I think authors who tell others they are devaluing their work are doing more harm than good but making people question their decisions. Everyone needs to do what they feel is best for them, and not second guess other people's decisions.
> 
> ...


Can't vote in the poll because my category is not listed. I agree with scarlet, each author has to decide on the value of their own books. When I did buy hardbound books, I never paid publisher's list price. I bought them on deep discount or used. If a book is priced above what I am willing to pay, I just won't buy it now, even if the sample is good.


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## history_lover (Aug 9, 2010)

scarlet said:


> On a tangential note, I have to admit, I am a bit tired of people saying that if authors sell their work at a certain price they are "devaluing" their work.


Well, that's my opinion and I'm entitled to voice it, I'm sorry if that bothers you but I'm not going to censor myself. As a photographer, I was always taught to price my work at what I felt it was worth and it wouldn't be saying much for my confidence in my work if I underpriced it. And if I don't have confidence in my own work, how can I expect anyone else to have confidence in my work? I think the same goes for any creative work.



> Each author has to decide how much they want to sell for, and if someone feels their work is worth 9.99, good for them. And I hope they sell lots of books (no sarcasm intended, I really hope every author sells lots of books). But don't make judgement calls about what other people do. I think authors who tell others they are devaluing their work are doing more harm than good but making people question their decisions. Everyone needs to do what they feel is best for them, and not second guess other people's decisions.


I'm not an author. But frankly, anyone who questions their decisions because some strangers out there disagree with their decision probably shouldn't be putting themselves out there in the first place. There's always going to be someone out there who disagrees and you can't constantly second guess yourself because of it or you'll drive yourself crazy. And it just confirms a lack of confidence - if one doesn't even have confidence in their pricing decisions, it's not surprising if they don't have confidence in their work either.

My views on underpricing and undervaluing are not meant to insult authors who have priced their work low but to encourage them not to be afraid to bump up the price, to have some faith in their work and let it show. They are entitled to dismiss opinions of course but I don't see anything wrong with my voicing them.


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## MariaESchneider (Aug 1, 2009)

intinst said:


> Can't vote in the poll because my category is not listed. I agree with scarlet, each author has to decide on the value of their own books. When I did buy hardbound books, I never paid publisher's list price. I bought them on deep discount or used. If a book is priced above what I am willing to pay, I just won't buy it now, even if the sample is good.


I disagree slightly--every author has to decide what the market will bear for her particular genre!!! My work is worth millions, I assure you. However, my market is people like myself--library goers, second-hand shop junkies, retired folks, people on a budget. I want them to buy my book (I write cozies until my new release which will be urban fantasy). I believe the cozy market will bear book prices under five dollars better than 9.99.

I am not saying these are my only market, but I worked in a library. I have a pretty good idea of who reads cozies. I watched people shop at the used book sales there. These people love bargains almost more than the book itself. (I am one of them--so that is not a put-down.)

It does not matter ONE BIT what price I want to set. It matters what the buyer will pay. The value I place on my work has very little to do with what someone will pay.


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## CaraMarsi27 (Aug 7, 2010)

What I pay for one book won't affect what I pay for another book by that author. I just got my K3 10 days ago and love it. But I'm still straddling the line between ebooks and paper. I wanted to buy a book I thought sounded good, but when I found out it was $9.99 on Kindle, I didn't buy it. For that price I'd rather have the paper. I'm sure this will change as I use my Kindle more. I do agree that a writier or artist or whatever shouldn't sell herself cheaply and should price the work at what the artist feels it's worth. Having said that, I priced my re-issued book at 99 cents, not because I don't feel it's worth more, but because I'm trying to build an audience for a novella coming out in December. I'm not saying this as self-promotion, but as a reason why some of us may price our books low.


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## Valentine Cawley (Sep 18, 2010)

Hi All,

D.A. Boulter: Your reaction is the ideal one for a new author marketing their work - buying one book cheaply, then all the others at normal price...however, I do think that is not a universal reaction, helpful though it is.

History Lover: on low pricing indicating lack of confidence. Yes. However, it could one of two types of low confidence: lack of confidence in the value of one's work OR lack of confidence in the market's willingness to pay up. The latter is very different from the former. So, it might not mean that the author doesn't think highly of his work, it might mean he or she doesn't think highly of the market.

Maria E Schneider: Yes. I agree that market realities are important considerations. The only question then, is what will the market bear...and how does one find that out?

There is a fairly common thought on this board which could be summed up with: "I like a bargain"...and another common thought: "price is up to the author...and should show confidence in the work". These are interesting thoughts, since they are in conflict somewhat. It seems most people like a bargain - that is want their books to be cheap, as readers - but as writers, they want the right to set whatever price they please, that reflects the "value" of their work. It seems that the reader in us all is in conflict with the writer!

By the way, Scarlet, I am not _saying_ that low prices devalue an author's work, I am _asking_ whether they do. To my mind, it is important to know this, before choosing a price. There might, after all, be unexpected consequences for one's future work.

By the way, all, you have to vote, first, before seeing the results: so have a good think, then vote with the choice that most truly reflects your view. Thanks.

By the way, Instinst, what option did you seek that wasn't among the choices?


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## Rainha (Sep 20, 2010)

I'm new to Kindle books, so I haven't really solidified my spending habits, but I imagine they'll be similar to my spending on regular books. I'll pay higher prices for books that I really want, no matter what the author's previous books cost. If it's a book that sounds kind of good, but not a favorite author, I won't pay as much (with regular books, it would be the difference between buying a book at Borders or the used bookstore, or on rare occasions, in hardback, if I have to have it right away). I would expect newer books to be more expensive, too. If I really like the first book from an author, I'd probably be willing to pay more for the second book, because it's newer, if for no other reason. Unless the author became incredibly popular overnight, though, I'd have a hard time making a jump from, say, $3 to $10 (though, if an author all of a sudden hit the bestseller lists, I'd expect _all_ of their prices to go up). I'm also unlikely to buy a Kindle book for more than I'd pay for a paperback, since I'm not getting any actual physical product.

So, to make all that rambling a bit shorter, if it's an author I really like, yes, I'd pay a little more. If it's an author I loved, I'd probably pay quite a bit more. If it's a book that I thought was okay, worth the $3, but not spectacular, I might pay a dollar more, but otherwise I'd most likely skip it. The $3 price on the first book is much more likely to get me to check the author out in the first place, though, and generally speaking, I wouldn't be surprised to see a second, newer book selling for more than an earlier book.


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## history_lover (Aug 9, 2010)

Valentine Cawley said:


> History Lover: on low pricing indicating lack of confidence. Yes. However, it could one of two types of low confidence: lack of confidence in the value of one's work OR lack of confidence in the market's willingness to pay up. The latter is very different from the former. So, it might not mean that the author doesn't think highly of his work, it might mean he or she doesn't think highly of the market.


I think there's plenty of people willing to pay more than $2.99 for a book so I'm not convinced a lack of confidence in the market is a good reason. Although your other topic didn't receive a huge amount of votes, it does show that more people are willing to pay more than $2.99 than those who wouldn't.



> It seems most people like a bargain - that is want their books to be cheap, as readers - but as writers, they want the right to set whatever price they please, that reflects the "value" of their work. It seems that the reader in us all is in conflict with the writer!


Again, I am NOT a writer but I still feel authors should price their work at what they feel it's worth. As a READER there is a part of me which expects books as low as $2.99 to be of lower quality and even though that's not always the case, I'm not sure why any author would want that kind of association with their work.


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## robins777 (Aug 10, 2010)

I have been buying books for over 50 years and still have many of them on shelves or packed away in boxes. I cannot remember ever paying more than £4 ($6.35) for a DTB and in most cases half that price.
Having recently bought a Kindle I was suprised to find that the price of books for it are the same, or in some cases, more expensive than the paperback version here in the UK. I am not willing to pay that sort of price and would just buy the DTB version instead.. 

I feel that the price of $2.99 (£1.90) is a reasonable price for an ebook and I would pay that or maybe just a little more for something I want.


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## MariaESchneider (Aug 1, 2009)

How to find out what the market will bear?  Know your audience.  I did a lot of research on my target audience. It's hard to just ask, "what will you pay?" because if you ask what anyone will pay for anything, they are going to say, "The lowest price possible."

If your main target audience is library goers, you can bet their price is less than say, women and men making 100k.  

Your main target audience should probably be a wee bit more detailed than "kindle buyers" because I know people on very low incomes who have bought a Kindle--BUT they are not going to spend arms and legs on books.  They never have.  I know people who own TWO kindles, but are still on relatively low incomes.  They have bought them because there are loads of cheap books and they are not as willing to go to stores as they used to be.  I know Nook owners who bought them solely BECAUSE of the library feature.  A Sony owner too, now that I think of it.

I can't answer your poll as I think it is dangerously skewed.  "Paying a normal price" shows a bias towards prices the industry has arbitrarily set--a price the industry has determined is necessary for them to be profitable.  This price could even be considered price-fixing as you'll note all the prices are similar.  I earn more from my work because Amazon has made it possible to get 70 percent commission within certain parameters.  That means I have a different cost structure, savings of which, I pass on to the reader.  My books up until now have had relatively low cost structure--so why would I: 1. value my work at an industry "normal" when that is an arbitrary value 2. require a higher price to recoup costs?

That "Normal" phrase is trying to compare work to other authors who may not even be making as much per book as I am.  My "value" as such comes in the form of "earnings" --not worrying about what the list price is for Janet Evanovich (Although she is a genius and makes more than me!)

My book due out in Oct, (About Oct 1 for the poll!)  "Under Witch Moon" had professional artwork done.  Higher costs.  If I want to go to "print" rather than just Kindle, there are cost associated with that as well.  Under Witch Moon will be priced $4.99 out the gate, higher than my previous works (anyone who would like to see a sneak preview of what I think is the fabulous artwork, check out my blog.  There's no voting yet, but I do have the two covers to choose from.)  If the market won't bear that for an urban fantasy by me, well, it will take longer to recoup my costs.  

What the market will bear also has a fairness factor.  I need to make money from my work.  I'd like to make as much as possible.  But I also need readers to take a chance on my work. It's a constant invisible negotiation with them.  But in the end, I want to give them good entertainment for their money.  As a reader, I want the same thing.


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## SandyLu562 (May 8, 2010)

I must say I have a vested interest in saying whatever will convince you to keep your prices low, so you may be asking a question that I can't answer honestly and still honor my best interests!

However I will tell you that I dl'd and read the first "Hollows" book when it was free and have not dl'd the rest; at $8 or so, they were just too expensive. $3 is more in my price range to purchase the rest of the books in a series.

I've not EVER purchased a first book for 99 cents and then the rest of the series for more.

You've probably noticed that I'm speaking in terms of series rather than authors ... I don't tend to read authors. Series are another matter LOL and J. D. Robb's In Death series is a wonder of author marketing for sure! Even knowing this, I still read more /shakes head. 

And yes they ARE expensive at $6.50 or so a pop. I only buy one a month, I guess my fun will last longer that way ....

So to answer your question: ask your financial adviser. Asking people with a vested interest is NOT in your best interest.


PS
What does this have to do with books i might want to read or have read? Since that's what "Book Corner" is really about, not your need to collect marketing information from Kindle Board readers. Yeah, I think this thread should be moved or removed (even if it did catch my eye and even if I did post)


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## Atunah (Nov 20, 2008)

Hmm, yeah, asking the readers (buyers) of a product if they want to pay more isn't really making sense to me.

I also have a little issue with this part of the poll:

*"I would pay above the odds for their next book, to compensate the author for their cheap first one!*

Ah, what?  So if I got to the store and find a great deal on a jeans, when I come back to buy another color of the jeans I am suppose to offer to pay more because I got such a great deal on the first one? Really? I don't think anyone would ever do that.

I feel like I am in marketing research class or something 

I like bargains and deals. I don't think a book is not valuable just because it costs 2.99 and not 9.99. I have read some carp that cost 9.99. I have read some great stuff at .99.

When its a completely unknown writer with not anything else I have to go on, I am not going to pay New york best selling prices for it. Even on established authors I read, lots of them are only released in paperback so I wouldn't pay more than 6.99 on those. Preferable less. That is for a known author with lots of reviews, backround, buzz.

So .99, 1.99, 2.99, 3.99, I have paid these and in between for indy books. To pay more, I would really have to have some great reviews to go by and a long book. Not saying I wouldn't pay that, depends.


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## Holly A Hook (Sep 19, 2010)

I'm responding without reading any of the previous posts to avoid bias.

I personally wouldn't want to pay 10 dollars or more for an electronic version of a book that probably didn't cost much to produce.  No paper, no printing, no shipping, etc.  (I could be wrong on this, though.)  So yes, the lower prices make me not want to pay for the higher priced books when I can go get a paperback.


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## MLPMom (Nov 27, 2009)

If it is an author I enjoy and the story or series was one I like then I will base that on what I would be willing to pay, regardless of what price I paid for the first book.


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## StaceyHH (Sep 13, 2010)

I buy ebooks based upon what I would pay if I were in the bookstore and was going to make a purchase. For me, it's a break-even proposition regarding the value-add of convenience of the ebook format vs. the tangible print version.

For example, I picked up Jim Butcher's 1st Dresden Files book for free from a friend. I then purchased books 2-4 for 5.29. By this time I was hooked (they are like CRACK! or CANDY! LOL!) and had NO trouble deciding to pay 7.99, then 8.29, then 8.99, and finally 9.99, and 14.99 for books 11 and 12. When 13 comes out, you can bet I'm going to buy it on release day for whatever they want to charge me. Why? Because I enjoyed the books enough so that if I did NOT have a Kindle, I would be down there at the bookstore ready to buy that hardback, the day it comes out.

So for a series, the first book is the hook. It makes sense (to me) to price it lower - like a loss-leader - but if and ONLY IF, you actually have the series available. There's no sense baiting the hook if you have nothing with which to reel them in later at a more average price.

More than the price, I depend on reviews by people/bloggers/reviewers who I already know have similar tastes to mine. A book that comes highly recommended from a trusted source... I'll gladly pay 9.99, 12.99, even 14.99... for the ebook, again, _because I would do so at the bookstore._ But if your work is completely unknown to me, and I don't have any source to check, I want the rock-bottom bargain, or I'll take a pass. There are way too many books on my TBR/To-Buy list that have already earned the spot for various reasons, why should I bump one of those for a complete unknown quantity? What is compelling about this? In the absence of other recommendations, I have to go with price, if for no other reason than it's low-risk if I don't get to it or don't like it.

But... once I've read a "low-risk" rock-bottom bargain purchase, if I love it, absolutely I'll purchase again from the author's catalog, at higher prices.

That being said, I think my upper ceiling for an ebook is about $15. If I'm really going to pay more than that, I want a new, hardbound, hardcopy.


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## Valentine Cawley (Sep 18, 2010)

Thank you to everyone who has given such valuable and interesting replies. I am sure that many readers will learn from them.

Maria E Schneider: I am not at all sure that the prices set by traditional publishing are "arbitrary". In fact, I think they are a structural aspect of the multilayers of the industry: everyone in the chain has to make a living, from the proofreaders, to the editors, to the designers, the marketing people, PR, advertising, the publishers, the warehouses, the distributors, the bookstores, the shop assistants...etc etc. There are so many people involved in getting a book to you. They all need to survive. So, there are many costs that need to be covered by that book. Of course, I haven't even mentioned such things as typesetting, paper making, printing and packaging and so on. The fact that different publishers come up with different prices reflects the fact that they ALL work within the same framework. It is not surprising they come up with similar prices. Those prices are the level they need to survive.

Now ebooks don't make this process much cheaper. They only cut out such costs as printing, storage, physical distribution and the like. All the other costs remain, for a publisher - so, in fact, ebooks should NOT be vastly cheaper than the print version, if the publishing industry is to survive in anything like its present form. The only people who can afford to publish ebooks for much less than traditional prices are, in fact, the self-publishers, for they have a different cost structure if they are doing much of the work themselves. Please take note of this, Holly!

I found Sandy Lu's response interesting for it is an example of the problem I suspect existed: that a low initial price, would prejudice future acceptable prices and buying behaviour. Sandy won't buy higher priced follow ons to cheap first books. 

Atunah and Sandy, it is unconsciously revealing that you criticize the survey by saying you can't expect to be honest/be open about your view on prices, when you are being asked to pay more. Firstly, I am not asking you to pay more, I am seeing whether you will pay a "normal"  price subsequently. That you clearly don't want to do so, is precisely the problem I was trying to investigate - and by resisting the question, you are, in fact, answering it. You do not want to pay normal prices after receiving discounts. Thus, the discounts "spoil" you, as a customer.

MLP Mom and Stacey give me hope - for you show a willingness to be open to a cheap first book, and higher prices later, if you like it. It would be good if that were the most common response!

Thank you all. Please keep the reponses, and insights into your own views, coming. They are fascinating, and eminently useful to writers and readers alike (for, after all, writers want to know what readers want...so as to give it to them...and readers want writers to know what they want, to be given it!)

Much appreciated.

Valentine Cawley (writer)


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## MrPLD (Sep 23, 2010)

We shot out the door at $8.90 but quickly realised at this point we'd have to drop down a couple of gears and ended up at $4.99 and then $3.99 for a 120k word well reviewed eBook.

I wouldn't like to go to $2.99 because the book is about double the size of a lot of others I've seen out there at that price point.  It'd be different if it was a quick-hack book, however this one has been edited and proofed quite well.

From a publisher perspective, I'd like to see the net margins on ebooks and printed equalize at the same point (hopefully around the $5 mark) but as always the market/consumer will tend to lead us 

Paul.


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## MariaESchneider (Aug 1, 2009)

To nitpick, publishers don't pay for typesetting anymore.  Few authors "make a living" with the current cost structure.  Most have day jobs.  Just as most indies have day jobs.  Yes, the cost structure is different, but publishers could stop some of the waste out there (Can you say "Returns??").  I read an article about a bookstore that was moving from one side of NY to another street (about two blocks) to a better location.  Rather than move the books, they marked them all as returns on their records, destroyed them and did a complete re-order.  This is not a one-off.  Bookstores regularly and arbitrarily "return" books for credit to the next buy order.  And they may have to re-order the book a week or month later.  They have no incentive to hand sell stock--it's much easier to scrap the book.  It's a dirty little secret in the industry and probably the largest waste factor out there.

Authors don't get paid a certain amount of their royalties when due because a fairly hefty percentage is held against "returns."  

Financial shenanigans like this do not help anyone.  Stock turns so fast in bookstores, readers can't count on a book being there a week later if they put off buying it.  Publishers have to print extra copies, warehousing is affected and so on.  

Not that I am here to solve the publishing woes, but my point remains.  An indie does have a different cost structure and more of the profits are coming our way--this means I don't *have* to charge as much as a publisher and can actually make more than I would as a traditionally signed author--assuming the book sells.  And why would I try to charge what you call "normal"?  I wish to *compete* with them, not be them.  

Everyone has a different cost structure in their books.  Some of us hire editors, some of us hire for artwork.  I don't know of anyone here who has employees, pension plans or employee insurance like the publishing companies do (we'd all actually like to hire a maid and cook, but so far as I know, no one has managed it.  Oh sure, Karen Cantwell has started saving the fliers the maid service puts on her door and Amanda Hocking has done one or two interviews, but at this point, it's still just a dream...David doesn't count because the maid he hired he did as an experiment for his cover art.  It didn't work in any case; the maid laughed instead of screamed in terror when he jumped out dressed as a zombie.  Then she charged him extra for cleaning up the extra "gore" of dripping brains and body parts.)

I still think that the price structure for "normal" completely ignores used  book prices and libraries.  We have to compete with those prices as well.  In fact, that is a market I target enthusiastically.


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## SandyLu562 (May 8, 2010)

Valentine Cawley said:


> Thank you to everyone who has given such valuable and interesting replies. I am sure that many readers will learn from them.
> 
> ...
> 
> ...


That's not what I said



> However I will tell you that I dl'd and read the first "Hollows" book when it was free and have not dl'd the rest; at $8 or so, they were just too expensive. $3 is more in my price range to purchase the rest of the books in a series.
> 
> I've not EVER purchased a first book for 99 cents and then the rest of the series for more.


To expand on my answer quoted above, don't take this to mean i won't purchase more books (in a series anyway) at a price higher than 99 cents for the first book purchased, I just haven't ever done it since I prefer free first books. Another point that you can't see is that I have a limited, well VERY limited, book budget at the moment and am being very strict with myself on the max amount I pay for a book as well as how many books I buy per month. I'm willing to pay more for the next books, just not a lot more. Hypothetically. Realistically, I got Darkfever by KM Moning free and enjoyed it SO MUCH that I bought the rest of the series for $6.29 each. However, I stopped short of pre-ordering the next installment for $12.99 (now 9.99).

So i guess the short answer to your question:


> Would you always expect to pay such a low price for their books?


 is no for free first books and i don't know for 99 cent first books.

ARGH!
This is why I hang up the phone when opinion pollsters call!
/rolls eyes at herself


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## nomesque (Apr 12, 2010)

It depends how much I want their books. Katharine Kerr's Deverry series? I was willing to go up to a ridiculous price to get the last one. There aren't many authors I'd do that for, though.

Generally speaking, I equate price with risk. If it's a book I'm unsure about, I'll be willing to pay $1-3. If I have confidence in a good read *and I'm keen to read it*, I'll pay more. Previous book prices don't matter much to me.


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## William Campbell (Feb 11, 2010)

Regarding the $2.99 price point, and any misconception that the price is too low, thus indicating the author places little value on their work:

Konrath listed some typical royalty figures on his blog the other day so I'll use those. For him, been there, done that, so he knows. I will quote the pertinent information. See Joe's blog for the whole story, Sept 24th:

"Mass market paperback is 8% of the cover price (though some houses offer 6% or even less), After a certain number of books are sold, it can escalate to 10%.

"Trade paperback is 7.5%.

"Hardcover is 10% for the first 5000, 12.5% for the next 5000, and 15% for everything after that.

"So, for a $7.99 paperback, the author earns 64 cents per copy sold.

"For a $13 trade paperback, the author earns 75 cents.

"For a $25 hardcover, the author earns $2.50 to start out, though it can get to $3.75 if it sells well."

Later in the article, of course Joe brings up the difference for a Kindle author self-publishing (the whole point). When we indie authors sell a Kindle edition for $2.99, the royalty is $2.04 (70% less some change for transmission fees). As Joe notes later in the blog, that's close to hardback royalty.

So I think it may be an uninformed conclusion to assume a book sold for $2.99 indicates the author places little value on their work. A print edition perhaps, but not an e-book. $2.99 is great for authors, and quite fair for a wide range of readers. Everybody wins. Well, except maybe the big publishers who continue the illusion that a "good" e-book costs $15. Phooey.

One argument to this logic is that the self-published author is burdened with the cost of editing and cover artwork. True, but still, $2.04 beats the pants off the 75 cents a trade paperback earns, and leaves some room to recover those costs, which as well, are becoming more reasonable every day (more good editors in the unemployment line perhaps).

I just like to point this out because it's an unfair assumption about some authors. I'm not crazy about 99 cents, and perhaps the argument of little perceived value applies, but not at the $2.99 price point, which is the price of my books. As for me as an author, my books are easily worth $50 each, possibly more if I did all the math, and depending on which decade in the future someone thinks the ROI should be realized. I don't care. I care more about giving the reader a good dose of entertainment, and at any price, I have every confidence my work does just that.


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## DLs Niece (Apr 12, 2010)

D.A. Boulter said:


> I bought a book put on sale by Baen Books for $1.99.
> 
> 
> 
> ...


This is pretty much how I feel. If I enjoy a previous work, I will purchase future works... as long as the price is not unreasonable. I will not pay more than what I would pay for an everyday paperback but have been known to pay as much as the printed version for something I'm interested in.


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## Jason G. Anderson (Sep 29, 2010)

I like the idea of an authors first book (or first book of a series) being a lower price than later ones (especially if its someone I've never read before), since it gives me a chance to try them out for less to see if I like their style/setting/genre. After the first book (assuming I like them), price becomes less of a concern. Unless they start being silly with their pricing of course!

Jason


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## Valentine Cawley (Sep 18, 2010)

Hi Maria E Schneider,

Yes. You are quite right. There are costs that I omitted...such as returns and, oddly enough, I forgot to mention the writer's cut and need to make a living, too. I think I was too busy cataloguing the other costs.

Yes. You are also wise to consider the need to compete with the normal pricing structure, not just echo it. However, that is only really possible because of our status as indie authors. The traditional publishing houses still have their cost structure largely in place even for ebooks. So, in a way, the little guy has the advantage in this new market and new technology. Of course, the little guy may also have editing and artwork costs - but that is fewer costs than the traditional structure requires. So, yes, your prices can be lower and still make enough for yourself - but only because you are an indie.

You refer to quite a surreal tale of David and the maid...I would like to hear more!

Thank you Sandy, for expanding upon and clarifying your views. That helps.

Nomesque: yes, new authors may be seen as a "risk" so I understand your take on pricing of first books. I sense that you would be open to more normal prices for future reads if the first one is good...

William Campbell. Yes. The cut for an indie publisher on Kindle can be in the realm of that for a hardback...but the difference is that the cut for a hardback does not have to pay for any other expenses. For an indie publisher, all publishing expenses, must be borne from that cut - so it is not as generous as it seems, at first, especially, if a significant number of the traditional publishing roles are paid for by the indie (proofreading/editing/artwork/even PR etc...)

It makes sense that the indie author should get a bigger percentage cut than traditional royalties - because they are performing the publisher's functions too...and have some, at least, of the publisher's costs to bear.

I am hopeful on hearing Jasonga's and DLsNiece's attitude...that of appreciating lower initial prices as a doorway to an author, but being open to more normal prices later. How many others out there agree?

Thanks for all your informative responses...

Kind regards

Valentine Cawley


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## nomesque (Apr 12, 2010)

Valentine Cawley said:


> Nomesque: yes, new authors may be seen as a "risk" so I understand your take on pricing of first books. I sense that you would be open to more normal prices for future reads if the first one is good...


*nod* I would. I HAVE done, now I think about it. Zoe Winters' Blood Lust series is an example. Amanda Hocking's My Blood Approves series is another. Cheap or free first book, more expensive books following.


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## pooka (Jul 31, 2009)

Valentine Cawley said:


> Nomesque: yes, new authors may be seen as a "risk" so I understand your take on pricing of first books. I sense that you would be open to more normal prices for future reads if the first one is good...


What is a normal price? Prices in the ebook market are fluid. Taking a look at the Kindle Bestseller List on Amazon, prices range from $19.99 (Fall of Giants, Ken Follett) down to $6.39 for Laura Adrian and $6.64 for Steig Larsson. One book in particular, The Help, is now $12.99. I can remember less than a year ago when it was $6.99. So which is the "normal" price? It is the same book, published by the same publisher.

It is my personal opinion that with the new agency model in place at Amazon, most books from major publishers are insanely overpriced. Perhaps I am wrong, and that's truly what they need to recoup costs, but I don't think so. And so I refuse to pay it. The wonderful thing about a free market is that I don't have to overpay for anything. I simply just don't buy the item. I either wait, check it out from the library, or swap books with friends or relatives.

I also didn't vote, because the choices are not specific. I believe that "normal" is a relative term, and I suspect the OP and I fundamentally disagree of the definition of "normal" in this instance.

The short answer is: If I like the author, and the story, I will pay what's reasonable to me (and my budget), and not something I feel is overpriced just because an out-of-touch publisher calls it a "normal" price. I have read some wonderful, amazing stories by indie authors, and a first book that is $.99 is like a bonus - especially if I like the story and the writing. I would pay more (easily) for additional books from an author I like. And I have. On the other hand, if the next book from that author is $9.99, I wouldn't pay it. Not because the initial low price "spoiled" me, but because I personally think that's too much to pay for most ebooks. That being said, I have spent $9.99 on some ebooks- but they were the exception. With ebook prices in general escalating over the course of the last year (not indies, mostly the agency books), it seems to me like a big game of "How much can we get them to pay?"

As a general rule of thumb, I won't pay more for the Kindle version that I would for the paperback version.


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## Valentine Cawley (Sep 18, 2010)

Nomesque: I wish all readers had your outlook. It would then be easy for new writers to reach readers - and subsequently make a living at it. Thank you for your comment.

Pooka, I am not at all sure that we do have a different idea of what is "normal" for a book price. My idea of prices has been formed, over many years, by the prices I have paid for paperbacks, since I buy relatively few hardbacks. Thus the full range of paperback prices is my "normal". Yet, I note, in Malaysia a tendency for some books to be rather more expensive than I expect. They are a bit outside my "normal" sometimes. Simple calculation, using currency exchange rates shows that quite a few books in Malaysia are marked up, over their European prices. This was unexpected to me, since Malaysians are generally poorer than Europeans. Anyway, that is just my gripe.

I note that you, too, will allow some normalization of pricing after a cheap first book (if I understand you right), assuming you enjoy the first - but you have a distinct cap, which you rarely breech. That is fine. For you and those who think in a similar way, have many choices of books at a wide range of prices. It is good, however, to know that stark changes in price - 3 to 10 dollars for instance, are regarded as unacceptable to you. I wonder how many others think the same way? What if 10 dollars (or 9.99) is a fair and reasonable price for the book in question, with the length in question? Is it reasonable then to ask 9.99 for it, having asked 2.99 for the one before?

I, too, wouldn't pay more for a Kindle version than the corresponding paperback version. I might pay the same price though...

Thanks for your comment.

Valentine Cawley


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## Rainha (Sep 20, 2010)

Valentine, my problem with the jump to $10 is that I don't think it's a fair and reasonable price for most ebooks.  I wouldn't consider it unreasonable for a new release, but I probably wouldn't pay it.  I'd just wait for the price to drop, just like I wait for hardcovers to come out in paperback.  I would go up to maybe $7 on an ebook that I'm reasonably sure I'd like, but any higher than that and I'd think long and hard before buying.  I can buy a book used, or wait til I get a 30% off coupon for Borders, and get an actual physical product for under $10, usually, so why would I pay more for an ebook?  This is especially true for a series, because six books at $10 each will end up being $60 out of my pocket.  It's definitely more about putting a cap on total cost, for me, rather than a problem with big jumps.


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## Valentine Cawley (Sep 18, 2010)

Thank you Rainha for your analysis of your perceptions of fair book pricing. It seems, for you, that the issue is that an ebook does not provide you with a physical object to call your own. You would rather have a physical book than an ebook (there are probably many with that view)...so you distinguish them on price. To you, an ebook is just fine if it is cheaper - if not, it is not fine at all. 

What if the ebook were 9.99 but the print version, even in paperback, was markedly more expensive because, for instance, it is a long book: would you then find the ebook price acceptable?


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## Rainha (Sep 20, 2010)

In that case, I would buy it if I really really wanted that book, but I'd still grumble to myself about the price.  Especially now that I've browsed around here and realized how much better the royalties are for kindle books - it sounds like they're cheaper to produce, in general, with more profit, so a kindle book at a lower price would still benefit the author more than a paperback (especially if I buy that paperback used).

Do take everything I say with a grain of salt, though.  I've only had my kindle three weeks, and I have a low paying job at the moment.  Given a little more time to get into my kindle groove, and a salary that doesn't make books a rare luxury, I may end up much more willing to pay $10 and up.


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## Atunah (Nov 20, 2008)

> Atunah and Sandy, it is unconsciously revealing that you criticize the survey by saying you can't expect to be honest/be open about your view on prices, when you are being asked to pay more. Firstly, I am not asking you to pay more, I am seeing whether you will pay a "normal" price subsequently. That you clearly don't want to do so, is precisely the problem I was trying to investigate - and by resisting the question, you are, in fact, answering it. You do not want to pay normal prices after receiving discounts. Thus, the discounts "spoil" you, as a customer.


 I don't think you actually read my post. I did not say anything like what you are implying and you are projecting what you thought I would say without reading. I don't really appreciate that to be honest. 
Nowhere did I say I don't want to pay normal prices. What exactly are normal prices anyway. The books I read mostly and buy cost up to 6.99, some are 7.99. I stated that. What I took issue with was the tone implied that if one gets a good deal on a first book, one somehow should feel obliged to pay more than what is asked. As a personal favor to the author. If I get a free book, or a good deal on a series starter and I like it, I buy the next one. Simple as that.

Also, please do not tell me I am resisting anything and again projecting what my answer was as suppose to what I actually said. You are being incredibly rude here. There is nothing unconscious about it. I say what I say, if you intent to read otherwise that is not really my problem.


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## William Campbell (Feb 11, 2010)

Valentine Cawley said:


> William Campbell. Yes. The cut for an indie publisher on Kindle can be in the realm of that for a hardback...but the difference is that the cut for a hardback does not have to pay for any other expenses. For an indie publisher, all publishing expenses, must be borne from that cut - so it is not as generous as it seems, at first, especially, if a significant number of the traditional publishing roles are paid for by the indie (proofreading/editing/artwork/even PR etc...)


Indeed, as I noted in my original post. Editing, artwork, and some marketing, but self-published authors do not have excessive rent and utilities, administrative staff, warehousing expenses, etc. That's the beauty of the e-book revolution. The content creator _can_ be profitable at sub-five dollar pricing in the new model, and readers are able to afford more titles. Win-win. My main point was to illustrate that inexpensive products in this new publishing model do not equate to "cheap" or otherwise indicate little perceived value by the authors. That is an assumption that in most cases is simply untrue. And it irks me to see the myth perpetuated. Self-published authors price competitively because they want to break out and get exposure, not because they feel their work is worthless. Rubbish. Self-published authors have toiled to provide quality material and the vast majority are very proud of their work. That's all I was trying to say.


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## Selcien (Oct 31, 2008)

"It would make no difference to what I would be willing to pay for a future book."

The most important thing for me is to enjoy what I read, if I was not willing to pay more than a cheap price for a second book then it would suggest that I didn't enjoy the first book enough to be bothering with the second book anyway.


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## Valentine Cawley (Sep 18, 2010)

Hi Atunah,

I am puzzled that you seem to have been offended by my summary of what I thought you meant. No offense was intended and I am sorry if you have been. However, you do seem to have misunderstood what I wrote, yourself, in fact. My "tone" is not as you describe, nor did I suggest that readers should have to pay more for later works, because of cheaper earlier ones - I only _asked_, if they would do so. There is a big difference between asking and telling.

William: I would agree that most indie authors work hard on their books and are consequently proud of their work. Some people, however, don't perceive their works in the way they should be, perhaps owing to misunderstandings over the pricing issue.

Selcien: I am glad to hear that past prices do not affect future ones, for you. I believe that should be the common attitude (but probably isn't)...

Thanks everyone for your comments. I seek ever to understand, that is all - and do not mean, to step on anyone's toes. I am sorry if I have.


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## J.R. Chase (Jun 22, 2010)

I rarely pay more than $5 and haven't bought a DTB in a long time.  The $2.99 price point will become the standards I'll bet.


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## andysm (Aug 10, 2010)

If I enjoyed the first book and wanted to read the next it would make no difference to the price I would be willing to pay (within reason). 
For trilogies or other fixed-length series I don't usually buy the first book until the last one has been published.


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## William Campbell (Feb 11, 2010)

Valentine Cawley said:


> Some people, however, don't perceive their works in the way they should be, perhaps owing to misunderstandings over the pricing issue.


Agreed, and the only reason I bring it up. Doing my part to dispel that misconception. Even when indie authors offer the first book in a series for 99 cents or even for free (not uncommon), their reason for doing so is to attract new readers. The price does not represent any lack of confidence in the work, or view of the author that the work is of little value. Again, the only reason I say anything. Let's not perpetuate that myth.


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