Catherine – my journalism training tells me I should call the
author Howard as I do not know her from a bar of soap but I will let that rule
slide – was bemoaning what happened when she dropped the price of her
travelogue Mousetrapped from $2.99 to 99c.
She had previewed
her second book at the end of Mousetrapped and hence the 99c positioning for publicity through increased
sales. It is a common strategy for 99c books, in fact, probably the main reason
for their existence.
Catherine
only wanted the campaign to run a couple of weeks but because of a technical
glitch involving communication one small retailer, she could not have the price
changed back (prices for eBooks are set at the lowest price any one on-line retailer
carries.)
Catherine’s
blog is essentially about what can go wrong when on-line retailers rely so
heavily on automated technology to maximise profits.
Catherine explains her plight.
“On a very bad month, I’d sell 500
copies of Mousetrapped at $2.99. Presuming that all of those
come in at the 70% rate (which most of them normally do), that’s an income of
approximately $1,045.’’
That explains how Amazon sets self-publishing
author’s royalties at 70% for books priced between $2.99 and $9.99 and tells
you that Amazon thinks it will maximise its profits if eBooks are sold at a
median price of $6 (not great news for mainstream publishers who certainly
cannot go near to maximising their profits at such prices).
The next bit from Catherine
gets interesting.
“At 99c, Mousetrapped sells around 1,100 copies a month
which at the 35% royalty rate – which is all it gets priced at 99c – that’s an
income of approximately $381.’’
What Catherine is essentially
doing is spending $664 ($1045-$381) a
month on a marketing campaign for her next book.
But she only wanted the campaign
to run for two weeks and she explains why:
“I make my living mostly from
selling these books, so being down $664 a month is not something that goes
unnoticed by my wallet.”
When she posted her blog, her book had still
not been updated to her $2.99 price.
She is more understanding than
most of us would be.
``I don’t think that Smashwords
are doing anything unreasonable here – presumably updating their third party
retailers takes time. I get that.’’
I would have thought a real living
breathing person with the appropriate authority could have updated it in no
time, if the computer interchanges between retailers work. I guess it is a
question of priorities and maybe the livelihood of authors and self-publishers
could be shoved a little higher in the priority hierarchy. Even if, Heaven
forbid, profit had to take a hit.
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