Okay, so you've written your ebook. Gotten a cover, written a blurb, formatting it and are halfway through the 'post it online for sale' process. Then you get to the price box - that little blank line that can make or break your book sales.* *note* - this post is written for indie authors. I'm assuming Nora Roberts isn't scanning the internet wondering what price to put on her next masterpiece.
So, what to put as the price?
Things to consider: 1. The length of your book: Is this an 100-page novella? A 600-page novel? Most readers balk at paying anywhere over $2.99 for a novella, no matter who writes it. If you are a brand new author, $1.99 is a more realistic price, or even $.99. At 600 pages, you still can't really expect more than $4.99 or $5.99 unless you have 100 glowing reviews or some type of ranking in your genre. 2. Does anyone know who you are? Have you written a book before? Or rather, have you written a book before that people bought and read? Do you have a following of fans? If so, you may be able to bump the price a bit - go for the $3.99 to $5.99 price point. If you are a new kid on the block, IMO $2.99 needs to be your price point. Much higher and some readers get nervous. 3. Do you have any reviews? Think about pricing your book cheaply initially, let word spread and hope that readers post reviews. Once you have some credibility, then you can raise the price a little.
My suggestion: Try to make your first book a full-length book, anywhere from 250-500 pages. Price it at $2.99. Give it a few weeks. If sales are sluggish, drop the price to $.99 for a few days and get some interest going, then bring the price back up to $2.99.
One thing to consider: Amazon only pays out 35% if your book is priced below $2.99. At, or above $2.99, they pay 70%. So...
If you sell 500 books at $.99 - you will make $175. If you sell 83 books at $2.99 - you will make $138.13
So you really hurt yourself when you drop the price below $2.99. Occasionally it is necessary, and good for spreading the word. But it should be done thoughtfully. There is no good reason, in my opinion, to price a book at $1.99 - it costs the reader an extra dollar when you only make 35 cents more. Your pricing structure should only change if you are trying to aggressively drive sales.
That's my two cents, hope it was somewhat rational. :)
Love to you all,