Quote:
Originally Posted by NormHart
Only 9 of the 100 ebooks are priced at over $10.00 I suspect this means that a lot of first run Sci Fi from top authors/major Publishers are not making the Top 100 Paid sales list. This contrasts with 11 over $10.00 in the top 20 in the overall Bestsellers in Kindle eBooks list.
I suspect that the Publishers will, eventually get the message.
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They might, but in doing so you're making a basic error in terms of the economics. Lower price may mean higher volume, but it also means lower
revenues.
For example, let's say that Book X sells 1,000 copies per month. If it's an agency book selling for $12.50, that is $12,500 that is split between retailer (30%) and publisher (70%). The cover price also sets the royalty rate, let's say 20%, which comes out of the publisher's cut. So the publisher is getting $6.25 per book, or $6250.
Now they cut the price of the book to $10. To match the same revenues, they now need to sell 25% more
just to break even. The publisher's cut drops from $6.50 to $5 per book, and the author is getting $2 instead of $2.50. (How many authors will be happy with a 20% cut in their royalties, by the way?
)
There are numerous other factors, but the reality is that none of us here can definitively state that cutting the cover price by 20% will automatically generate a 25% or greater increase in sales.