Determining the Selling Price of a Book

A member of one of the Goodreads discussion groups asked why my publisher's prices were so much higher than those of the commercial vendors that sell my novel, Levels. It occurred to me that others may also be curious.

The publisher's base price is targeted toward commercial distribution, not for individual consumer consumption.

All formats (paperback, e-Book, and audio book) are sold through the Ingram Books distribution system to commercial vendors at a 40% discount or more, depending upon the size of the order.

Each vendor establishes its selling price based upon its specific overhead, anticipated volume, and established profit margin.

I receive a 15% royalty on all sales. At the end of each quarter, the publisher sends me a report detailing how many copies of each format were sold during the previous three months, along with a check for the appropriate amount.

Levels is available in several languages and in several countries. That particular market's pricing mechanism is determined by each country's economy, unique business practices, and its currency's rate-of-exchange versus the U.S. dollar.