/ Technology

99p ebooks – proof publishers are wrong on prices

Computer mouse plugged into books

With ebook best seller lists dominated by books costing less than £1, surely it’s about time publishers realised that artificially high prices aren’t the answer?

The American self-publishing author John Locke sells his ebook novels for 99 cents on Amazon.com. Since January he’s sold 350,000 books, pocketing 35 cents per book sold. That’s $122,500 dollars of income in less than three months.

When another self-publisher, Joe Konrath, reduced the price of his book from $2.99 to $0.99 his sales went from 40 books per day to 620, increasing his revenue by five times in the process.

It’s a similar story in the UK – as I write this, six of the top 10 Kindle books are priced at £1 or less. It’s not just self-publishers; some big-name publishers have caught the bug too. What better way to get people hooked on a new series than selling at a knock-down price?

Levelling the playing field

Pricing books this way makes them a commodity. £1 is a trifling amount, so little it’s easy to take a punt on a book that sounds good and has okay reviews. The more the book sells, and the more positive reader reviews, the more powerful the argument becomes.

For an aspiring writer it’s gold dust. There’s no need to pester publishers for paltry rewards – just go straight to the customer. Customers, meanwhile, risk little in their purchases, especially as there’s no cast-iron guarantee you’ll enjoy an ebook priced £7.99 as opposed to £1.

High prices are self-defeating

While 99p ebooks are great news for self-publishers, it doesn’t say much for the future of quality literature.

If you can write three, four or more books a year, such tactics are easy to understand. But writing a biography requires endless interviews and research, and not all novels are produced in a fury of writing – some require extensive research to get the details right. The longer a book takes to write, the less this commodity pricing is feasible.

Still, the success of 99p ebooks proves publishers’ ebook price fixing doesn’t work. Readers know that £7.99 for an ebook is just plain greed, whereas £1 or less is too tempting to ignore. By setting their prices so high, publishers make a future of 99p ebooks more likely, not less.

Do you think ebooks as cheap as 99p are a good idea, or will it damage the quality of the books we read?

Comments
Member

There are still a few traditionalists out there who, like me, enjoy holding a b o o k and turning the p a g e s. I can’t imagine a library full of Kindles either. While doing research I have five or more books open at the same time to check references and select quotations. A visit to a real bookshop is a treat, but, of course, physically producing a book costs more than duplicating a million or so E. copies. There has been price fixing in the past but, like CDs, the relative price of a good read is a lot less than it was. What else can you get for the price of a paper back? Those who invest in an electronic reader, should expect economy of scale to be passed on, provided the person who wrote the book is as well compensated for his work as if he were traditionally published. For a few years yet, there will be two sets or purchasers: page turners and screen flippers. The former will probably not be jealous of the latter if their content is cheaper so long as the author isn’t squeezed in the middle.

There are many independent and respected bodies out there who consider the books that are published, and review them. Cult (Potter) status apart, first class writing will shine through because people want to read it. Look at the bins full of cheap DVD’s and CD’s in Supermarkets that probably end up in the skip even when offered at £1 a go. Bad books won’t survive either what ever the price.

Member

I agree – I’m a b o o k lover.- I can drop them – sit on them – and read them. My other problem is I like to re-read them after a few years. Unless e-books can be stored outside of the reader – I would be a reluctant e-book reader though I do have a few free classics that I can read on a computer that I downloaded. But nothing beats an interesting book at bed-time.and I can fall asleep reading it without any problems of battery life and fragility of an ebook reader or small screen. Ebay and Amazon do sell very cheap s/h real books at around £1.- rather than the £6 to £10 in a high street book shop.

I have around 3000 real books – all that I enjoyed reading the first time – so I always have a book to re-read

Member
Simon says:
14 March 2011

This isn’t an article about whether you prefer books or e-books, it’s about e-book pricing.

In my view cheap e-books are a good idea, or at least appropriately priced ones. Even if the price were set around £2 or £3 for some titles it would still be tempting, but once you start asking for more than the price of the hardcopy it’s just ridiculous. As can be seen from the above, an author can still make a good profit from a low-priced e-book, and consumers aren’t silly enough to throw money at publishers for nothing. If publishers actually want to sell their books in e-book format, they need to catch up and start pricing them appropriately.

Member

Good point Simon. This conversation is about ebook pricing.

At present, most people are more concerned about the pros and cons of ebooks compared with paper versions. The price of ebooks will have an effect on the future availability of printed books, so it is very important.

Member
Jack W Perry says:
14 March 2011

I believe 99 cent eBooks are definitely a smart way to go for many publishers (and individuals). I understand the reasons traditional publishers want to hold onto a $14.99 eBook price. But that is old-school thinking and out of step with the realities of today. I think eBook pricing will continue to drop as more publishers start to understand pricing.

One question re: the John Locke example at the onset of your post — doesn’t he get 65-70% of the revenue. So he would get 65-70 cents per sale not 35. This doubles his income to over $250,000.

Member

You’re right that authors get 65-70%, but only for books priced $2.99 or higher. Anything less than that is 35%.

Member
Anonymous says:
15 March 2011

Pardon me but I’m a bit confused – some of the prices above are in $GBP and others are in £USD such as the one used in this example. Do you know if there’s a consistency in Amazon and which percentage rate authors get for books priced either £0.99 or £2.99 ?

Many thanks,

Anonymous

Member

It’s a little complicated, but this page explains things a little.

Member
Joanna Aislinn says:
15 March 2011