Format | Typical Price Range |
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Paperback | $12 – $18 (indie), $14 – $20+ (trad pub) | | |
eBook | $2.99 – $9.99 (indie), $9.99 – $14.99 (trad pub) |
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Note: Indie books are generally shorter than traditionally published books. We will come back to this topic further below...
Thus the average price of a paperback is about $14.99 for an indie author, and about $16.99 (or more) for a traditionally published author.
But when it comes to eBooks the pricing becomes trickier, as Amazon and other companies often set a limit of $2.99 to $9.99 for ebook prices, and give the author less royalties if they go above or below that number. The average price for an ebook by an indie author is likely close to $6.49.
Meanwhile traditional publishers get better pricing options, allowing them to charge more for their ebooks. The average price for a tradpub ebook is about $12.49 or so.
If we want to express this as a percentage of the paperback cost then it would be about...
43.3% for indie ebooks.
73.5% for tradpub ebooks.
Thus if an indie author was selling a paperback for $9.99 then they should probably be selling the ebook for $3.99 or $4.99.
However as they become more popular, and get better book reviews, they should reconsider their pricing strategy so that they can make a more reasonable profit per ebook sale. As such if an author has 10, 100 or 1000 ratings / reviews (and assuming that the reviews are mostly positive) then they could in theory raise the price of the ebook/paperback by $1, perhaps raising the ebook price to $5.99, $6.99 and $7.99 when they reach different sales quotas.
Obviously the length of the book is also a factor. A novella or pulp fiction novel will be shorter and therefore cheaper.
Meanwhile an author writing 600+ page (or 300,000 words) novels might be charging $9.99 for the ebook and wishing that Amazon/etc would allow them to charge a higher price. Likewise they might be charging $24.99 or up to $29.99 for the paperback.
Why do traditional publishers set higher prices for ebooks?
They do this during book launches to protect the pricing and success of the paperbacks. They typically set the ebook price at $1 to $5 less than the paperback as a way of encouraging people to just buy the paperback instead. That is their motivation.
They might lower the ebook pricing later after the launch, but during the launch the ebook price will be pretty close to the paperback price.
Meanwhile indie publishers often price their ebooks about $5 to $10 cheaper than the paperback.
What about prices less than $2.99?
Prices less than $2.99 should only be used when you are having a promotional sale or if you're selling individual short stories and novelettes.
What about hard cover books and audiobooks?
Indie Hardcover Book $17.99 – $29.99
Traditional Hardcover Book $24.99 – $35.00
Indie Audiobook 6–10 hrs $9.99 – $19.99
Traditional Audiobook 10–12 hrs $20 – $35
One of the things you should note here almost immediately is that indie audiobooks are often considered to be shorter than traditional published audiobooks. This isn't always true however, not for every author, but it is true generally.
Indie books are often about 30,000 words shorter than traditional published books.
- Indie 50,000 – 90,000 words (fiction)
- Traditional 80,000 – 120,000 words (fiction)
Note: Nonfiction indie books can be even shorter. But that's a different topic for a different blog post.
Another thing you may have noticed is that traditional hardcover books and trad audiobooks are almost on par in terms of price. Meanwhile indie audiobooks are priced so that the average indie audiobook is selling for about $14.99, on par with the price for indie paperbacks.
Clearly most authors are trying to sell paperbacks and audiobooks at roughly the same price, when they really should be charging a price that is closer to the hardcovers.
How much should authors be charging for their books, based upon length?
Taking into account that the average tradpub book is about 100,000 words and $16.99, and that the average indie book is about 70,000 words and $14.99 then we can start to do some math in terms of pricing...
If you are an indie author and your book is the following length, then you should be pricing your paperback books accordingly...
Wordcount Paperback Price Ebook Price Hardcover Price Audiobook Price
5,000 $3.99 initially. $0.99 NA NA
10,000 $4.99 initially. $0.99 NA NA
15,000 $5.99 initially. $2.99 NA NA
20,000 $6.99 initially. $3.99 NA NA
25,000 $7.99 initially. $4.99 NA NA
30,000 $8.99 initially. $5.99 $13.99 $7.99
40,000 $9.99 initially. $6.99 $15.99 $9.99
50,000 $11.99 initially. $7.99 $17.99 $11.99
60,000 $12.99 initially. $8.99 $19.99 $13.99
70,000 $13.99 initially. $8.99 $21.99 $15.99
80,000 $14.99 initially. $9.99 $23.99 $17.99
90,000 $15.99 initially. $9.99* $25.99 $19.99
100,000 $16.99 initially. $9.99* $27.99 $21.99
110,000 $17.99 initially. $9.99* $29.99 $23.99
120,000 $18.99 initially. $9.99* $31.99 $25.99
130,000 $19.99 initially. $9.99* $33.99 $27.99
140,000 $20.99 initially. $9.99* $35.99 $29.99
150,000 $21.99 initially. $9.99* $37.99 $31.99
Etc
* Don't release the ebook version immediately. Release the paperback, hardcover and audiobook versions first. Delay releasing the ebook version in order to maximize sales/revenue.
Notice the word "initially". You can change the price later, increase it, lower it, etc. Whatever best suits your needs. But you should at least initially be offering your book at a price that allows you to get a decent profit margin.
NA: It isn't so much that it is not available, it is more of a matter that it doesn't always make good financial sense to make audiobooks or hardcovers for short fiction. It makes more sense to do that for an anthology collection, not the individual stories.
Strategy Time!
It is our opinion that indie authors should be doing several things in order to sell more books:
1. Don't sell yourself short. If your book is less than the prices listed above, you're selling your book for less than it is arguably worth.
2. Don't be afraid to raise the prices of your hardcovers and audiobooks in order to maximize revenue.
3. Don't release your ebook immediately during the general release. If possible you should instead schedule the ebook to be released a few months (1 to 3 months is a decent amount of time) later than the paperback.
4. Traditional publishers use a strategy wherein they release the hardcovers first, alongside the audiobooks, and delay publishing the paperback version for several months, and eventually release the ebook up to 1 year after the initial release. They do this because some readers will buy the hardcover regardless.
5. Consider the option of listing the hardcover and audiobook versions as the same price. Traditional publishers often do this because it is more profitable, so why not you?