MobileRead Forums - View Single Post - Interesting article on book pricing and why it might rise

BearMountainBooks · 12-04-2010, 08:58 PM

I think you're probably simplifying the self-publishing model. What makes it cheaper isn't really entirely "do-it-yourself" it's more controlling the costs and shopping around. For a large publisher, they have in-house people and that salary for book cover (whether photoshopped or outsourced there's someone with a salary at the house in control of that cover). They have a salary for the editor, the copyeditor, the proofreader, the publicists and so on. Their costs are set and only likely to go HIGHER over time.

For a self-publisher, I can get artwork from any number of places. I may or may not be paying for health care, salary and retirement when I pay an artist. I'm likely to pay a lower fee simply because I am not a big house. Not to mention, I'm not likely to commission work from a big-name artist. BOTH of us are hungry. So we work to negotiate a deal that works for both of us. Just as an example: I might buy artwork and photoshop it myself. I might draw it myself. I might hire an art student or I might hire a graphics artist. The prices for all of those can range from near zero to, let's say 1500 dollars per book. But I get to decide. If I HAVE the resources for a particular project, I can go straight to artist D and say, "here's the project. Give me a bid." If I don't like the bid, I can look around for a lower one.

But a big house is going to be paying staff ALL the time, year round. They will work multiple projects, but they will be paying health care and all those other costs for multiple employees.

Same with editors and every other part. The key is there is an open competition for me to find the cheapest but BEST that I can afford for a given project. Some of my covers I did myself. As those books made money, I was able to put that money into an artist for better covers. The same thing happens on a larger scale at a big house, but there is a cost they never go below because they have constant employees.

One of the things I can do as a self-publisher (and that some smaller publishers are doing) is put out the book as an ebook. Less cost in TIME and upfront MONEY than if I do both a print AND an ebook. I'm not paying for proofs. I'm not paying for the more expensive wrap-around artwork required for print covers. I'm not paying for review copies to send around, nor am I paying postage to send them. These may seem like small costs, but they add up. I don't think I could put out a print version for less than 200 dollars even if I did all the work myself; proof costs and copies that I'd need, not to mention the various program costs associated with being on Amazon or B&N, etc.

If the e-books are successful enough at a given price I (or a small publisher) can decide to invest in a print book. But the key is to try different things while watching the bottom line. The big guys don't bother. They stick to their old model. And that's okay with me because it create a tier where I can survive. It's up to me to thrive--and them to figure out how to thrive with their higher cost structure and different pricing expectations.

I target the frugal reader. I target the library reader who wants to splurge on an ebook now and then. I target the reader used to buying used books for 3 or 4 dollars.

The big houses are in the middle of trying out whether they even want to target those same readers and if they do decide to target them, which books? Backlist? New on special? Never? Teasers?

Because it's not all about one price. It can't be. It's not all one audience.

12-04-2010, 08:58 PM	#200
BearMountainBooks Maria Schneider Posts: 3,746 Karma: 26439330 Join Date: Aug 2009 Location: Near Austin, Texas Device: 3g Kindle Keyboard	I think you're probably simplifying the self-publishing model. What makes it cheaper isn't really entirely "do-it-yourself" it's more controlling the costs and shopping around. For a large publisher, they have in-house people and that salary for book cover (whether photoshopped or outsourced there's someone with a salary at the house in control of that cover). They have a salary for the editor, the copyeditor, the proofreader, the publicists and so on. Their costs are set and only likely to go HIGHER over time. For a self-publisher, I can get artwork from any number of places. I may or may not be paying for health care, salary and retirement when I pay an artist. I'm likely to pay a lower fee simply because I am not a big house. Not to mention, I'm not likely to commission work from a big-name artist. BOTH of us are hungry. So we work to negotiate a deal that works for both of us. Just as an example: I might buy artwork and photoshop it myself. I might draw it myself. I might hire an art student or I might hire a graphics artist. The prices for all of those can range from near zero to, let's say 1500 dollars per book. But I get to decide. If I HAVE the resources for a particular project, I can go straight to artist D and say, "here's the project. Give me a bid." If I don't like the bid, I can look around for a lower one. But a big house is going to be paying staff ALL the time, year round. They will work multiple projects, but they will be paying health care and all those other costs for multiple employees. Same with editors and every other part. The key is there is an open competition for me to find the cheapest but BEST that I can afford for a given project. Some of my covers I did myself. As those books made money, I was able to put that money into an artist for better covers. The same thing happens on a larger scale at a big house, but there is a cost they never go below because they have constant employees. One of the things I can do as a self-publisher (and that some smaller publishers are doing) is put out the book as an ebook. Less cost in TIME and upfront MONEY than if I do both a print AND an ebook. I'm not paying for proofs. I'm not paying for the more expensive wrap-around artwork required for print covers. I'm not paying for review copies to send around, nor am I paying postage to send them. These may seem like small costs, but they add up. I don't think I could put out a print version for less than 200 dollars even if I did all the work myself; proof costs and copies that I'd need, not to mention the various program costs associated with being on Amazon or B&N, etc. If the e-books are successful enough at a given price I (or a small publisher) can decide to invest in a print book. But the key is to try different things while watching the bottom line. The big guys don't bother. They stick to their old model. And that's okay with me because it create a tier where I can survive. It's up to me to thrive--and them to figure out how to thrive with their higher cost structure and different pricing expectations. I target the frugal reader. I target the library reader who wants to splurge on an ebook now and then. I target the reader used to buying used books for 3 or 4 dollars. The big houses are in the middle of trying out whether they even want to target those same readers and if they do decide to target them, which books? Backlist? New on special? Never? Teasers? Because it's not all about one price. It can't be. It's not all one audience.