Quote:
Originally Posted by pdurrant
As I've mentioned before, I think a reasonable ebook price for something that's out in paperback for £7.99 is about £3.99, certainly less than £4.99.
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Here's my example re-worked with 3% VAT:
Reasoning: paperback discount to retails is between 50 and 60%. Say 55%. Cost of production of paperback (when including returns) is probably £1.00 per copy sold. Paperback royalty is usually 8% rising to 10% or even 12%, but let's say 8%.
Income from paperback sale = 45% of £7.99 = £3.60
Less cost of printing/storing/shipping/returns PER COPY SOLD: £1.00
Less author's royalty: £0.64
Gross profit per paperback: £1.94
For ebooks, retail discount is 30%. VAT is 3%.
Income from ebook sale at £3.99: £2.71
Less author's royalty: £0.68 (25% of net)
Gross profit per ebook: £2.03