ebook pricing is a HUGE deal because, for me, it has made the difference between earning $4 per month from a single ebook to over $25 per month from that same ebook!
Fine-tuning and tweaking your prices is literally one of the key factors to earning a lot of money from your ebooks.
But how does one know whether to price an ebook at 99 cents or $6.99? I have learned a few tricks over the last few months, and will be sharing them with you throughout this post.
If you take a look at my income reports, you’ll notice that I’ve been earning quite a bit of money from the ebooks that I am selling on Amazon Kindle’s KDP platform. For the most part, my ebook income has been increasing, without much additional work on my part…all that I did was tweak the prices and analyze the results.
Here’s what I learned…
*These methods, tips, and tricks can be applied to the prices of your ebooks on all platforms, not just on Amazon’s KDP platform*
People Aren’t Looking For A “Good Deal”
I immediately thought that pricing my ebooks lower would lead to more sales. I figured that people would see them as being “good deals”, and be more intrigued to buy them.
However, I was completely wrong!
People that are looking to buy ebooks aren’t looking for “good deals”…they are simply looking to receive an ebook that is absolutely worth the price that they are paying for it.
With that being said, most of the time, pricing my ebooks lower lead to fewer sales.
Which leads me to my next point…
Pricing Your eBooks Higher Can Actually Lead To More Sales
That’s right…increasing the prices of your ebooks can actually lead to more sales.
Who would have ever thought that putting a higher price point on a product would lead to more people buying it?
It’s basically like free money. Not only are you earning more money per sale (because 70% of $4.99 is more than 70% of $2.99), but you are actually making more sales. This literally leads to a massive increase in profit.
There is a reason behind this….
People Are Often “Sold” By Perceived Value
Let’s imagine that I wrote an ebook that ended up being 100 pages, and was planning on selling it for 99 cents to make it seem like an amazing deal for the purchaser. The purchaser would come across my ebook and see that it was priced at 99 cents, while looking at the other comparable ebooks that are priced at $4.99.
They would immediately be thinking that it cannot be a good quality ebook.
This is what would be going through their mind:
How on earth can he offer me 100 quality pages of writing for 0.99 cents when everyone else is charging $4.99 for roughly the same number of pages?
Your attempt to try to give them a deal will lead to them perceiving your product as having a lower value, which will, most of the time, lead to fewer ebook sales.
But there is also another side to this arguement…
Pricing Your eBooks Too High Can Also Lead To Fewer Sales
On the opposite side of the spectrum, pricing your ebooks too high will also lead to fewer sales, and less profit being earned.
Imagine that you priced that exact same ebook at $8.99, while the comparable ebooks are priced at, once again, $4.99.
The purchaser would immediately be thinking that they would be getting ripped off.
This is what would be going through their mind:
How on earth can he try to charge me $8.99 for 100 quality pages of writing when everyone else is only charging $4.99 for roughly the same number of pages?
So what’s the lesson here…charge a high price, but not too high? Charge a price that you deem as being fair? What is considered to be fair?
The true answer is none of the above!
The Secret To Finding The Magical eBook Price Point
When it comes to ebook pricing, the way to earn the most profit is to test, test, and test even more! The honest truth is that there are plenty of factors that come into play when someone is considering the purchase of an ebook. Things like the niche that it’s in, the cover art that it has on it, the number of pages that it contains, and the author’s reputability all come into play!
With that all being said, there is no magical formula!
But there is a solution…
Test the sales and profits of your ebook at different price points, and see which one earns you the most money!
I’ll give you an example…
Price your ebook at the following milestones for 15 days each:
-$0.99
-$1.99
-$2.99
-$3.99
-$4.99
Create a spreadsheet to record the sales and profits of the ebook for each 15 day period. Once you’ve done that, compare the sales/profits for each 15 day period, and it will be easy to see which price point is best for that specific ebook.
The rest is simple…sell the ebook at the most profitable price, and sit back as it generates passive income for you.
I have done this with each of my ebooks (simultaneously) and have literally been able to more than double my profits without publishing any new titles!
Then, once you’ve maximized your profits for all of the ebooks that you have released, you can publish some new titles and repeat the ebook pricing process!
That’s all that there is to it! Test your ebook sales at each price point, record the results, and the most profitable price for each ebook will be staring you in the face!
