All You Need to Know About Pricing Strategies For a Book
In his fifth book of the Successful Indie Author series, Craig Martelle talks about pricing strategies that will bring success and profit to new independent writers.
In 6 chapters, he shares his experience and transfers his knowledge to authors who want to break through and become recognizable to the world. In his well-known way, he introduces readers to the terms and concepts that every beginner in this business should know.
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Craig introduces readers to the book in which he talks about price psychology and the correct and accurate determination of the price list of the book. He notes that he wrote the book in an easily understandable tone and that the techniques he uses are universal and easily applicable. If Indie authors accept his methods, there will be more readers, and thus greater earnings and popularity.
Chapter One: Setting Yourself Up for Success
At the beginning of this chapter, Craig talks about the great potential for sales and earnings in the world. There are several ways this can be achieved. But there are also more ways to lose money. But Craig first wants to dedicate himself to creating value.
The way an author determines the value of his book is to take into account the time invested in the book. Craig came up with the exact mathematical equation that comes down to the price of the book. In the explanation of the equation, it is concluded that the price of the book is equal to what the market will bear.
Craig then explains some terms that readers should understand before reading the book further. Here he defines the words “books”, “box sets & omnibus”, “KDP Select”, “read-through”, “buy-through”, “release, launch, and publish”, “wide”, “back matter “,” front matter “, and” categories and genres “. He then switches to marketing terminology: “tail”, “promotion”, “ads-advertising”, “stacking ads”, “sale”, “A / B testing”. He also clarifies the financial terms “margin”, “royalty rate”, “earn out”, “ROI (return on investment)”, and “download fee”.
Craig then says that linear calculation shouldn’t be used when setting the price. This means that earnings will not be the same every day; they will oscillate from day to day.
The author says that the regular price at which people buy your book is the only point where you can be sure you have loyal readers. When people buy your book only at discounted prices, it signals that you need to look for a new audience.
He also clarifies the concepts of advertising and marketing. He lets his readers know that whenever you ask people to buy your book, it means you are advertising it. Craig says that many people misunderstand that word. For a book to sell, good marketing is a big part of the strategy. If you don’t have a marketing campaign, people won’t be able to find out about your work and they won’t be able to find out about your creativity, Craig claims.
At the end of the chapter, he gives an overview of the pricing strategy for a full-length science fiction novel from the pre-order period to launch and discount one year after publication.
Chapter Two: Prices and Their Place in the Natural Order
In the second chapter of his book, Craig explains what each price says about your book. He notes that the author must know that there are readers who will buy only cheap books and that there are those who think that your book is not worth it if it’s cheap. And there are those who like to buy at reduced prices because they believe it’s the best offer.
Craig first considers free books or those that sell for $ 0. He thinks that this price is justified only in the case when the author publishes a series of books, so in this way, he wants to attract readers to buy the next book. If it’s one book you’re selling, then it doesn’t really make sense. Craig says he has a couple of free books, but only on sites like BookFunnel where the book is paid for by email address.
The next price point is $ 0.99. This is the lowest price at which you can sell a book on Amazon. This is also the most common price at which writers lower the prices of their books on Amazon. Craig further presents statistics related to buy-through and read-through.
The price point of $ 1.99 is in the same range as the price of $ 0.99. For the first book by a new author, it may not be the best option, but for every subsequent one, it comes into consideration.
Craig says he sold his first full-length books for $ 2.99 to maximize his royalties. Even now, when he starts a new series, he puts this price on for the first two books, and later increases it for the books from the rest of the series. He says that in that way, readers get the impression that they get a book at a bargain.
The price of a book between $ 3.99 and $ 4.99 is acceptable to most readers. When they see this price, they usually think that the book is of sufficient quality and worth reading, without being overestimated. Craig says that this is the most common price he puts, especially for science fiction.
For Craig, the price of $ 5.99 to $ 6.99 was not profitable. He says that in some genres, this is the standard price, like crime fiction.
The price range from $ 7.99 to $ 9.99 is reserved for well-known and recognized authors. Craig says he values his omnibus edition this much.
Pricing at more than $ 9.99 is something Craig hasn’t tried. He says that only writers who are so in demand that they can put any price can set such a price. Craig also believes that writers of that rank probably don’t read this book, which is primarily intended for Indian authors.
Chapter Three: What are Those Prices
In the third chapter, Craig looks at defining all the types of prices that can be formed. First in line is the pre-order price. This is the price that is set for the book before it’s published. Craig says that most new authors don’t book pre-orders. The price in the pre-order phase is usually the same as the regular price or slightly lower.
As for the regular price, Craig says that the value you assign to the book should be neglected, but what the market will bear should be taken into account. The regular price must be set accurately and precisely because it sets the standard, Craig claims.
The sale price should be part of the marketing strategy when selling the book. A 50% to 80% discount on the regular price is the right measure. Everything below will not be tempting to readers, and everything over sends the wrong picture. $ 0.99 is the most common and most popular sale price.
Craig then explains all the ways a book can be put on sale. He then talks about promotions that he thinks are good for boosting sales. Promotions can be organized and announced for some holidays, such as Christmas or Thanksgiving, claims Craig. That way, each new author will attract new readers.
Craig concludes that everyone should research the genre in detail when publishing a book and that they will be able to form a price more easily. We should focus on marketing, building a brand, so when the author succeeds in that, only then can the prices rise.
There are benefits to selling books for free, Craig claims. He says it should be seen as a kind of marketing strategy, as a sample of the products you offer. But this should only be done if you have more books to offer.
Craig also talks about the benefits of the $ 0.99 schedule and talks about the impact of KU on sales, and finally about other sale prices. He shows by his example what’s the smartest way to conduct a sale. He also explains in detail how to come up with a read-through and buy-through calculation and why this is important for any new author.
Chapter Four: Managing Reader Expectations
In this chapter, Craig gives tips on how to get the most out of a book through the use of pricing strategies. Craig says it all starts with readership. Attention should be focused on the right audience and marketing should be concretized and adapted to them.
As far as price formation is concerned, a brand should be formed over time and thus the price will rise. Craig says that the audience should be trained at a certain price, which means gradual adjustment. Craig also describes his main pricing strategy and how he used it to increase readership.
Craig believes the biggest challenge in self-publishing is selling a single book. The biggest piece of advice Craig gives to readers is to write another book. Also, one should research the market and study the genre of the book.
In series pricing, one of the most important things to keep in mind is to keep the promises given to readers. Craig is not a big fan of giving books for free; he believes that if enough effort is put in and good marketing is carried out, the minimum price should be $ 0.99.
When it comes to discounts, Craig believes that the first book in the series doesn’t have to be discounted. Discounts should be left for special occasions and should last for a short period of time so that the audience thinks they must take buy at that moment.
Furthermore, Craig is considering whether to put a full price on the first book in the series and what price should be box sets and omnibuses.
Almost the same rules apply to non-US markets. Each market needs to be explored and well known. Craig thinks that it should be taken into account that this may bring fewer benefits in relation to the energy consumed. He concludes that perhaps one should focus on only one market.
If you want to raise the price, you should, first of all, inform your readers, claims Craig.
Chapter Five: Other Revenue Streams
The audience needs to be provided with various options if the author wants to keep everyone happy. In addition to the ebook, a paperback option should also be offered, which is quite easy to achieve on Amazon. Sales can also be made through Expanded Distribution. Craig also explains how Ingram Spark works.
Hardbacks is another publishing option. Craig says that he did it for series where he put several books under one hardback.
One of the fastest-growing industries is audiobooks. Any author can pay a narrator to record audio of the book and later sell it through an app, such as Audible. Patreon is one of the latest book publishing services. Craig publishes one chapter of the book a week and gets paid once a month.
Kickstarter is a type of crowdfunding service for authors who need help publishing books. The money raised can be used to print books.
Chapter Six: In Closing
The author uses the sixth chapter to summarize the complete story and to give readers his final word. Craig talks about the importance of choosing the right pricing strategy and how to connect with fans. He reminds us that all the authors started from the same point and that further progress depends exclusively on their work and desire.
We need to think about the further course of writing. A single book won’t be able to provide a lasting source of funding. It’s important to have good timing for promotions and marketing. Craig notes that authors need to monitor progress and perform statistical analysis so that they can improve their rating.
Pricing should be a sweet spot between your minimum and the maximum price that readers are willing to pay. In time, you will become recognizable and you will be able to set prices, Craig claims.
Main Image Source: Pixabay