A Dead Price Point
By Mark Lefebvre, Director of Self-Publishing & Author Relations, Kobo
“I see dead prices!” Yes, I know, I’m riffing on a line from M. Night Shymalan’s The Sixth Sense. But if it gets your attention and helps you earn more money as an author, I’m okay with that.
I had the pleasure of being on a 2013 Romance Writers of America Conference panel called Self-Publishing for the Professional Author in Atlanta in July.
On the panel with me were Julia Coblentz from Barnes and Noble, Mark Coker from Smashwords and Jon Fine from Amazon. The four of us discussed trends we had recognized through each of our businesses. Among them was an interesting trend: a universal dead price point for eBooks.
You see, when I first encountered this, I thought it might be unique to Kobo.
Then, the results of a survey that Mark Coker released back in May began to confirm what I had been seeing.
Here are a few points from that wonderful survey:
- “Note how books priced between $1.00 and $1.99 significantly underperform books priced at $2.99 and $3.99. $1.99 appears to be a black hole.”
- “….books priced at $3.99 will earn about 55% more than the average book at any price. Books priced at $1.99 are likely to earn 67% less than the average.”
And in a paidcontent.org article by Laura Hazard Owen , Mark Coker was quoted as saying: “$1.99 performs especially poorly. It’s a black hole. I’d avoid that price point if you can.”
During a presentation focusing on Kobo, I shared data related to what sold well on Kobo with the audience there.
You’ll note that, for Romance titles published out of the Kobo Writing Life part of our catalog, the $1.99 price point underperforms – whereas, the price points of $0.99 and $2.99 through $4.99 perform quite well. In fact, though there are far fewer romance titles priced at $3.99 and $4.99, they are performing significantly better volume wise.
Also to note, the market itself (i.e. what is selling in general across the entire catalog of romance titles) demonstrates that the market will bear pricing up to $7.99 and very few indie-published titles are set at that price. It leads to the question of whether or not there is room for indie authors to test the waters at higher price points and earn a bit more margin per unit sold.
Then, as mentioned, on the Kobo/Kindle/Nook/Smashwords panel, all four of us announced to the RWA audience that $1.99 was the weakest performing price point in all of our retail environments.
Is $1.99, then, a true dead zone for pricing? A price point that fails to do well no matter what eRetail environment you consider? I’m curious to continue to explore this further.
About the Author
Mark Leslie Lefebvre is a writer, editor and bookseller. He prefers to refer to himself as a book nerd. Mark has been writing (under the name Mark Leslie) since he was thirteen years old when he pounded out his first novel on an Underwood typewriter. He has since written several stories and books, some of which actually made their way through slush piles and into publisher’s catalogs and bookstore shelves.
Mark’s recent books include the non-fiction tales of ghost stories Haunted Hamilton: The Ghosts of Dundurn Castle and Other Steeltown Shivers (Dundurn Press, August 2012), the science fiction anthology Tesseracts Sixteen: Parnassus Unbound (Edge Publishing, September 2012) and Spooky Sudbury (Sept 2013).
(He would also like you check out the Jewels of Historical Romance sampler, if you haven’t already.)