Tuesday, December 6, 2011

Does the price $9.99 or $19 influence sales?

Here is a hint:

on B&N, my lulu books at $19 are now showing up first the sales dropped around 40% in the last month going from $250 in sales to around $150 in sales.

the B&N books I published directly are still showing up but lower which means many people will miss them.

On top of that most of the nook books are under $10, so my books price are perceived as quite high.

some books are coming via the lulu channels, this means that about 6 sales come from the lulu channels.

that's about $50 for these sales.

the average sale for my nook books is $6.50

The point is that when price doubles, overall sales do drop by around 20-30%, not 50%.

This means that if I sell 100 books at $19, I make $1900

If I sell 100 books at $9.99, I make $999

If the drop in sales due to price increase is only 25%, I still make 75 sales at $19 which gets me $1425.

That's still an income increase of around 50%

I do believe that this is the way it works...

The trick though is that on nook and kindle, I get 70% commission only if my book's price is lower than $10 so no strategic change needed there.

On the other hand on Ipad, that's another story, my royalty commission is not dependent on my sales price.

So it's all good!