Why $2.99 Doesn't Devalue Your Work

There seems to be a certain camp in the writing and publishing worlds that feels like selling a novel at $2.99 is somehow devaluing that novel, and novels in general. The idea seems to be that readers will refuse to pay more than $2.99 for novels eventually, and that will somehow topple the publishing industry.

But no one is asking whether readers should pay more than $2.99 for most books. We've just accepted that paperbacks are priced at $8.99-$16 and that hardcover books are priced at $20-$30. And so we feel like ebooks should be priced somewhere along that line, too. But does anyone know why a mass market paperback is priced at $9? Or a trade paperback at $16? Or why a hardcover book is $25?

In the 1960s, a paperback book might cost anywhere from 25¢ up to around $.75 or so depending on the length, publisher, genre, author, and specific year (you can find evidence of these prices by looking at old book covers from that era). Now, a lot of these books were shorter than what we're used to these days, coming in at around 150-200 pages. They were "pocket books", in their truest sense: they would fit in your pocket.

So, if we look at a book that was 50¢ in 1965, and adjust the price for inflation, we're looking at a book that would be $3.59 in 2011. (A 25¢ book would be $1.80, a 75¢ book would be $5.39 in the same year.) So your average mass-market paperback would be $3.59, and some books would be as low as $1.80. Now, outside of a used book store, I haven't seen prices that low in my lifetime (at least not that I remember).

Even if we consider the length to be double on modern novels, that still means we should be seeing books that are only $4 on shelves, and some ranging up as high as $11 or so. But just about every mass market paperback I see is $9-$12. Trade paperbacks (which weren't really around in the 60s) run as high as $20. So while books are longer than they were in the 60s (the shortest modern novels are usually around 300 pages), we've set a new baseline price. We expect to pay at least $9 for a new paperback.

And so a lot of people think that selling an ebook for $2.99 is devaluing books in general. People look at that price and think the author doesn't view themselves as "worth" a higher price. But lets break down the numbers:

First of all, if I sell a novel at $2.99 on Amazon, I'm going to earn roughly 70% of the cover price: $2.07 or so after Amazon deducts their delivery fee. Now, if I have a book published through a legacy publisher and the mass market paperback is selling for $9, if I'm lucky I'll make 10% of that: $.90. So I'm already making more than twice as much with the $2.99 ebook. Even if I'm splitting that royalty with an ebook publisher, I'm still probably making more money.

Second of all, you eliminate a lot of expenses with ebooks. Covers are less expensive for a couple of reasons: 1) I don't have to buy high resolution print-ready artwork which is often significantly more expensive than web-sized artwork; 2) I don't have to design a spine or back cover, just the front. Both of those mean a cost savings. Something a lot of publishers don't want to admit. I also don't have printing or storage costs. For many books, this probably runs somewhere around $2, between printing, shipping, and storage in a warehouse somewhere (plus the labor to deal with all those books). And the production process is often faster, too, because there are no print proofs, no print galleys, etc. Everything is done digitally, which means there's a ton of room for workflow improvements (whether publishers are actually taking advantage of that is another story).

Third of all, you eliminate the gigantic time lags that are inherent to any print publishing schedule. Everything can be done quickly, files sent instantly, etc. And so it's possible to publish more books in less time for less cost. That's a big savings.

So let's say that the above adds up to a $3 savings per book (which I think is being conservative, though if anyone has any hard data about these things, let me know and I'll revise), which now puts the paperback as only twice as expensive as the ebook, while I'm still earning more than twice the royalty.

But here's the big thing that most people overlook: at $2.99, more people are reading more books. At $2.99, a book is an impulse purchase. We don't have to plan for it, or budget for it. We can just buy it if it looks like it might interest us. Even when I'm broke, I can usually spare $2.99 for a book. It's cheaper than a movie ticket (cheaper than a movie rental, even, in some places). It's definitely cheaper than going out to dinner. And it provides hours of entertainment. The best part is that I can buy an ebook and then keep it on my phone and read it whenever and wherever I want. (As an aside, if you're looking for a phone that makes a great ebook reader, the Droid X2 is fantastic for that, even if it's lacking in other areas. It even remains readable in direct sunlight, much like epaper.)

As authors, we need to think about the long-term relationship we have with readers. If books keep getting more expensive, they're going to be viewed as a luxury item by many. And that's not what I want my books to be. I want them to be practical, to be read, and to be accessible to pretty much anyone who wants to read them. I'd rather have 1,000 readers at $.99 than 100 at $10, even though in the short term the $10 readers will earn me more money. And I'd much rather have 1,000 readers at $2.99.

I was talking with a friend on Facebook who was lamenting the size and price of new paperbacks. She said that she missed the days of small paperbacks that could fit in your pocket and be read in an afternoon. And I agree. I like a book that I can read in an afternoon. Sure, longer books are great sometimes, too. But what's wrong with a book that's light and fun and a page-turner? The answer was that those books aren't as profitable for big publishers. They need the longer books to justify the much higher prices. $2.99 changes that. $2.99 is a great price for shorter books, for page-turners, and for books that are meant to be read in an afternoon.

I only charge $.99 for my novellas. They're all around 20,000-30,000 words long (which would work out to around 60-90 pages if they were printed). I feel like that's a very fair price for what they are. And besides, my novella series is meant to gain attention for my work. I'm writing them to share with people, and to get fans. At $.99, more people are willing to take a chance. Sure, some people just "collect" $.99 ebooks and never read them, but I have my own collection of books I've picked up at a discount that I have yet to read. What's wrong with that?

At some point I may increase the price of the books, but for now I'm comfortable with $.99. And sometimes I feel like that makes other authors out there look down at my work, as if I've somehow shit in their corn flakes (that might be a little crude, but have you seen the way some of these people talk about $.99 ebooks and their authors?)

The point is that low cost ebooks make it easier to get people to try reading. At $.99 to $2.99, a teenager who's on a very limited budget can afford to buy a book a week. A single parent can afford to buy a book a week. I like the idea that someone can buy my book rather than a cup of coffee one day (and I'm not talking about Starbucks, either). I like the idea that my books are accessible to pretty much everyone. And I like the fact that I'm building a readership who will hopefully stick by me as I write longer works and charge more. Some will, and some won't. But offering a $.99 "intro" is a great way for them to try me out and decide whether I'm worth more to them. It's kind of like there are certain authors whose books I sometimes read, but I only buy them used, because I don't have an unlimited budget for books and there are other authors who are "worth" more to me. But I would completely buy their books as ebooks if they were priced lower than the paperbacks.

For me, I'd rather have ebooks be priced lower and sell more, and entice more people to read, than keep raising the prices and drive more people to view reading as a luxury. Other people feel differently about it, and that's fine. But for me, I'm going to price as low as I think I should for a book, rather than as high as I think I can.