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How QNP's Pricing Works...

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message 1: by Robert (new)

Robert Berg (robwillreview) | 3 comments Mod
We’ve had some questions sent to us via e-mail and twitter about how our pricing works, so we figured we should break it down for everybody...

How can it cost $25,000.00 to produce a book?
We started Quixotic Night Press in part because we wanted to see writers (and editors and illustrators) get compensation equivalent to the value of their work. To keep up with what is considered fair, we make use of The Writer’s Market. Every year they publish a guide for freelance writers and editors. We aim for the industry standard (or average) in calculating what we pay for the various components of book creation. Here is a rough breakdown of that $25,000.00...

Card Processing Fees – $1000.00
This money goes straight to the credit card companies. Card processing is charged every time a book order is processed. Credit card companies charge a flat fee plus a percentage of the total sale. For a $9.99 book, the percentage of the cover price that goes straight to the credit card companies is about 4%. So, 4% of all money a book brings in goes just to pay credit card processing fees. The lower the book’s cover price goes (as you may have seen elsewhere, we drop the price of the book based on number of preorders), the higher this percentage goes (because the flat fee does not reduce as the book’s cover price does), topping off at about 12% for a $2.99 book.

The Author – $5000.00
The standard advance for an author is currently around $5000.00, and we wouldn’t want to offer an author any less. Rather than an advance, we offer authors an immediate royalty pay out if their book goes to publication. If it doesn’t, we still offer them the content editing their book underwent as part of the pre-order process. This fits inline with our starting author royalty rate of 20%. Our royalties are progressive, and go up as pre-orders do.

Content Editing – $6500.00
This is an upfront cost, as we make sure the book is edited before it goes on pre-order. If the book does not reach the publishing threshold, we cede the edits to the author, to use or not as he or she sees fit.

Copy Editing – $3500.00
This covers fixing all the grammatical errors that creep in, as well as formatting the ebook for the various different ereaders.

Advertising – $1500.00
Pretty much what it says on the label. This money goes towards book promotion in the pre-order month.

Company – $5000.00
This money pays the rent and keeps us open and producing books.

Everything Else – $2500.00
This bit of the budget pays for cover art, miscellaneous operations costs, etc. and whatever seems to be left over we put towards advertising or investing in system improvements or whatever else needs fixing.

Total: $25,000.00

Well, there you have it. Our (rough) rhyme and reasoning behind our book production costs. And regardless of whether or not the book goes to publication, we pay our content editor, cover artist, advertisers, etc. for their awesome work on the project

Our first six months is really an experiment, with the aim of finding the best way to offer authors higher royalties and readers lower prices. This is part of the reason why we are currently closed to submissions. Our first books might each go through pre-orders using a different variation of publishing model, as we’re trying to find the best model that gives authors increased royalties, lower book prices for readers, and the best ways to integrate with emerging technologies.

If you have any questions, please, leave a comment below and we’ll do our best to answer them!

message 2: by Robert (new)

Robert Berg (robwillreview) | 3 comments Mod
PS. For future releases, we will discuss with the individual author the pricing threshold that they are comfortable with (in case they wish the book to go to print at a lower number of pre-orders). The royalty percentages will remain the same, but it will offer authors some additional flexibility.

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