3 Mistakes To Avoid When Pricing Ebooks

One of the dilemmas you face when selling your first ebook or information product is deciding how to price it. You want to make it affordable it so it tempts customers into hitting Buy Now but you also need to make a profit, right? If you price it too low, you reduce the profit margin. If you price it too high, you lose customers.

How much should you charge for your ebooks? One of the dilemmas you face when selling your first ebook is trying to price it. Should it be $9.99 or $29.99?
You want to make it affordable it so it tempts customers into hitting Buy Now but you also need to make a profit, right? If you price it too low, you reduce the profit margin. If you price it too high, you may lose customers.
Or would you? Maybe you’d make more…
mistake
 
 

What’s the Best Price To Sell ebooks?

You need to work backwards. What I mean is that best price is the price that suits your customer.
But, here’s the catch.
You can persuade your customer that they need more that they want (I bet you see this in supermarkets all the time) and you can play with their emotions, for example, by creating limited editions.
There is a strong urge in humans to have something that others can’t afford, is unique, or hard to find.
Once you understand how these emotional triggers work, you can experiment with different pricing strategies.

What’s the Best Price To Sell?

Ok, the best price is between $9.99 and $33.99.
I’ve seen exceptions to this but the best selling ebooks are in this range.
Why?
If it’s less that $9.99, it’s seen as low-value and not worth the effort. The subtext in the customer’s mind is that if I do a Google Search, I’ll find a similar product for free.
If it’s less $19.99, customers think about buying the product. It has to be something of high value that solves an immediate problem.
If it’s around $33.99, then it has to be more valuable that the hardback (if it’s an ebook) and something they can justify to their boss, for example, when they claim it as an expense.
With this in mind, you need to consider the buyers:

  • Sense of urgency
  • Immediate problem
  • Justification to superiors or peers

Emotional Triggers & How Buyers Buy Online

Most online sales are instant purchases.
Customers don’t:

  • Look on Monday
  • Get an invoice on Tuesday, and
  • Buy on Thursday

It’s very direct. They have a problem. They do a Google Search. They find your site. Then it’s buy or no buy.
Conclusion
The only way to determine the price your ebook is to starting selling as soon as possible. Once you’ve launched three or four books, you will have a much better insight into what your target customers are willing to pay and also use the feedback to refine your products. In some ways, this makes things simpler.
You can see these ebooks to research your target market and use the data to build better products – that sell more copies.
Additional Tip: Use E-Junkie for ebook delivery and your affiliate program. It all ties into PayPal (and other payment processors) and it’s only $5 a month.

 
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10 thoughts on “3 Mistakes To Avoid When Pricing Ebooks”

  1. Ivan

    Great insights here on pricing. One would have thought for the first one or the first few to price lower to get people to buy. Interesting on the lower than $33.95. Such an odd number as you would think it would be 34.95.

    Pricing is hard when you are jumping from free to paid. You want to please your pocketbook but also get as many buyers however what really matters is the perception of the customer as if they are not persuaded, they just will not be buying.

    1. Hi Suzanne,

      Such an odd number as you would think it would be 34.95…

      From what I've read, people respond better to parallel numbering eg 33, 66, 77, 99

      And they seem to prefer odd numbers.

      For example, you will see $7.99 and $9.99 but rarely see $8.99.

      It may be that it’s harder to read/interpret the combination of odd and even numbers – whereas all odds are easier to digest at a glance.

  2. Just because someone hates to write doesn't mean they can't write a good ebook. People who talk perfectly well can sometimes choke up when they try to write, By using my system, they learn to get what's in their head down on paper. Also when people are writing ebooks to solve a problem, people who are purchasing it, care more about the solution itself than the literary component. I think there is plenty of room for both in the world!

    1. One thing I noticed about ebooks is that the higher the price, the fewer the complaints.
      I think this may be that the customers have searched and found the right product and then want to use it.
      If it’s too low, they want a refund and go hunting elsewhere.

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