Thread: Amazon vs. Hachette Update - It's About Price
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Old 07-31-2014, 07:15 AM   #69
fjtorres
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Quote:
Originally Posted by JSWolf View Post
If Amazon makes more money at $9.99, then the publishers would make more money as well.
They would.
And they do.

Here is what the AuthorEarnings DataGuy posted:

Quote:

Here’s what the authorearnings.com data from July can tell us about comparative sales at different Kindle ebook price points:

Taking the Top 500 Best Sellers at each price point and eliminating the top 10 from each, we see:

$9.99 ebooks outsell $14.99 ebooks by a huge margin in units

http://authorearnings.com/wp-content...rice-point.png

$9.99 ebooks outsell $14.99 ebooks by a huge DOLLAR margin, too, despite their lower price

http://authorearnings.com/wp-content...rice-point.png

Even when looking only at the Top 10 (outliers) for each price point, the pricing sweet spot at $9.99 or above seems to be $10.99 (with $9.99 running a close second).

The Top 10 bestselling ebooks at $12.99 and $14.99 generate fewer gross DOLLARS (as well as selling fewer units) than the Top 10 at $9.99 and $10.99.

http://authorearnings.com/wp-content...t-outliers.png

But… $4.99 beats $9.99 in every category. It sells more units AND brings in more gross DOLLARS than any other price point. This is true even for the Top 10 Best Selling outliers at each price point.

The Top 500 Best Selling Kindle books priced at $4.99 are out-earning those at $9.99, $10.99, $12.99, $14.99, and every other price point.

(Below the Top 10, $3.99 runs a close second to $4.99.)
Which aligns perfectly with what Mark Coker of Smashwords reported on his own data.

There really is more money (gross revenues, not just author earnings) being made at the lower price points.

Amazon ain't lying on this one.
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