Kindle Bootcamp Day 6: Finding The Pricing Sweet Spot

Today we are going to talk about your book’s pricing strategy. Considering we are in this business to make money, this is a very important area of self publishing.

Many authors are afraid or hesitant to price their books because they don’t want to offend their readers should they think it is priced too high.

Although we are authors and writers, at this point we need to start thinking like marketers and salespeople.

When uploading your book to Amazon, you will have the choice to either take a 35% royalty option or a 70% royalty option on the sales of your book.

Any book you sell from $2.99-$9.99 will earn you the 70% royalty option. Books for less than $2.99 or above $9.99 will earn you the 35% royalty option.

With these options in mind, don’t be afraid to price your book by how much you would like to earn from it. Your book is a quality piece of information or fiction, and you should be proud to show that.

Make Perceived Value Work In Your Favor

An interesting thing I have discovered throughout my life as a buyer and a seller of goods is often a low price tag is associated with low quality, and a high price tag is associated with high quality.

For example, take two identical classy silk blouses….now slap a $1000.00 price tag on one and a $5 price tag on the other. Which one would you perceive as the higher value blouse if you were in the market for a classy silk blouse?

Most people would say the $1000.00 blouse, and they would be under the subliminal assumption that even though they look identical, for some reason, the $1000.00 blouse is of way higher quality…..or it wouldn’t be $1000.00.

There is a very strong psychological element when it comes to money and cost. Pricing is not always determined by the actual value of a product, but rather its perceived value. And it is time to put on your promotional hat and make people realize that your book is worth the price you have chosen for it.

If you have confidence in your work, others will too. If you don’t have confidence in your work, no one else will either. Keep this in mind when choosing your price.

When Should You Consider A Lower Price Point?

Most authors instantly go straight for the 70% royalty option by pricing their book between $2.99 and $9.99. Logically, this would make you the most money, right?

Not always.

In my own experience, when I dropped certain books down to .99 cents, I made way more sales than I did when they were priced at a higher price point. Some books actually surpassed the income they were bringing in when they were priced higher.

However, this wasn’t the case with every book I experimented with. Some books didn’t get any sales, and some got even fewer sales.

What I discovered was the short books did better at this lower price point of .99 cents. The lower price tag on books that were under 100 pages resonated well with my buyers, almost like they expected a shorter book to have this low price tag. And the .99 cent price didn’t seem to have much of an effect on the perceived quality of the short books.

Another instance where you may want to consider a lower price point is for a limited time series promotion. For example, if you have a series of books, a very effective promotional strategy would be to price the first book in the series at at low price point for a limited time. This will help draw in more customers to buy that first book, and if you have written your series right, they will be hooked and on to buying the rest of the books in your series, which will be priced higher.

If you use the above promotional strategy, be sure to let your readers know in your book’s description that the low price point on the first book of your series is only temporary, and that the price will be going up soon. This helps to create a sense of urgency within the reader and nudge them on to act faster to make a purchase.

Often Finding Your Book’s Perfect Pricing Sweet Spot Only Comes Through Testing

Sometimes the only way to find out what your market is willing to pay for your book is through testing and tweaking. If you are not getting as many sales as you would like, change the price. See what happens.

If you are still not getting the results you want, test and tweak again.

One thing you can do if you have absolutely no idea how to price your book is to look at your closest competitor’s books. What are they selling for? Is your book comparable to theirs? If so, try pricing your book accordingly.

Action Step: Do some research tonight on Amazon on what books in your genre and topic are selling for. This will be a good starting point for when it’s time for you to choose your pricing.

Be sure to check your email tomorrow for day 7 of Kindle Bootcamp where we will discuss how to effectively market and promote your book on and off Amazon. Remember, your book isn’t going to sell itself!