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How do you decide the optimum price? If you've got an Adwords budget you could dabble in some trial and error and see how many copies sell at different price points. But surely there's a better way? Or do you have a look at books in the general subject area - say books targeted at stockbrokers/daytraders/spread-betters - and price it at approx what all those other books sell for? What if it's a really, really unique 400 page tome that's print-book quality and outstanding in its insights, analysis and information (and has the potential to save the reader a six figure sum)?
How you market the book may have a bearing on how much you charge. Working off free SE traffic would allow you to sell at a lower price than if you had affiliate commissions to pay, adwords costs etc. Again, how do you factor that in... or do you guys who publish ebooks just stick a pin in a chart?
Also, in many production environments the whole year starts with the marketing dept predicting the volume of sales and the rest of the company works backwards from there. Ordering the right volumes of raw material, right labour skills, and other facilities all starts with the marketing dept's prediction of likely sales. How do you predict possible quantity of sales for an ebook? In fact, shouldn't the (profit per sale x number of copies expected to be sold) be a worthy number before you even start writing the book?
I'd start by researching competing ebooks and ebooks that are similar but not directly competitive. Make a chart of the price distribution and see if it reveals any sweet spots.
I'd set a price level that would support affiliate sales, and at least limited PPC advertising. If you price it so low that you can only depend on free traffic, you'll probably see a long rampup time and low profits in the long run.
Here's my creative suggestion: do what product companies have done for years - introduce the ebook at a high price. The high price will only appeal to buyers who are very interested and have the resources to buy it, but you'll maximize your margin with these earliest sales.
As time passes, run a "special" or come out with a lower cost edition. This will open up the market to more buyers. You can repeat the process at an even lower price level later.
My econ prof referred to introducing a product at a very high price as "skimming the cream", i.e., soaking those willing to pay for as much as you can. Several price reductions later, you'll have maximized your profit while eventually having a mass market price level.
Here's my creative suggestion...
I would still be interested in any thoughts on estimating likely volume. I appreciate that the target customer in my case is a qualified professional in a very specific niche so estimating the likely uptake is tricky. But it would be very useful to me if I could get an insight into existing ebooks in a few different subjects and the how many copies they sold. Is there anywhere I could get/estimate that info?
the higher the price the lower the likely number of copies you'll sell.
What if it's a really, really unique 400 page tome that's print-book quality and outstanding in its insights, analysis and information (and has the potential to save the reader a six figure sum)?
... if that's the case then you'll sell more coppies if your price goes some way towards proving your claim because of "perceived quality". If your market know that there is information out there that will save them a 6 figure sum; and your sales copy convinces them that you have that information then they will pay a 5 figure sum for it. However, if you're trying to sell that information for 5 bucks they aren't going to take any notice of you at all...
I have the same pricing conundrum with software rather than an ebook; but since I work closely with my customers in support post-sale I don't want to start high and come down because I have no wish to wake up to the "Oi; I just paid £1000 for this and now you're selling it for a fiver :( " email!
Another question: What the highest price anyone's ever seen for an ebook?
The writing of an e-book is a relatively simple process, but the selling of it, is something else entirely. As you know.
If it is cheap (or at all, percieved to be), then no-one will want it!
They used to be quite dear, about 40 dollars, and anyone is willing to pay that, if they "think" it is of value. This is where correct audience targeting comes into play and properly seo'd pages, leading to the sales page/pitch.
If it is to be sold by affiliation, then that must push up the price, to compensate for the only feasible commission rates. High. Above 50% to be any good, and up to 70%, using affiliation mechanisms.
The big boys can get up to 70 dollars, but they have the network of buddies to propagate such books.
Rogerd's suggestions are on the button: I'd say that no-one would even buy your ebook for twenty dollars, regardless of the content. You'd be as well off to give it away free, through resource boxes or something, and make it lead to something else, than to attempt to sell it cheaply.
Sales pitch, and testimonials (known to be effective and they generate a human face of satisfied customers. Testimonials were easily got in exchange for a live link.
Consider a "tell a friend" link within the book.
A friend asserted yearly updates, within his seo ebook which increases its "percieved value".
Creating "bonus" products, to compliment the ebook, is vitally important. Often times, the bonuses can outweigh the main product. Find existing ones.
Incidentally, it is known that a ninety day full money back garentee, is much better from your point of view, than a thirty day garentee. In a modern distractive world, your garentee will be long forgotten by the time the full refund period is up. This device also cuts down on the likelihood of immediate returns.
Here is another consideration: Join wikipedia as an editor/contributor. You won't look too bad, should you ever need to leverage it?
