I have a Free Kindle Nation Short (FKNS) ad running today. It’s basically a one-day email blast to 20,000+ subscribers and includes six chapters of my new book as a sampling. Now mind you, every person who’s read this book has raved about it. I am my own worst critic and I am telling you this book is the best I’ve written. I could march out the reviews, every damn one of them an honest one. But I was worried from the start about this ad anyway. Kindle Nation, and a LOT of the current ad options many Indie writers are considering, are populated with consumers looking not just for a great sample or a catchy cover or even a killer novel: they’re looking for a deal.

A crazy deal.

One of the reports that Kindle Nation freely gives out is the performance of each ad and sometimes comments on the slower sales of some books. Most of time I’ve seen those comments it is something along the lines of “you may be charging too much.” Another ad I am just finishing ran for a month and was “impression-based”. (For those of you who don’t know, impressions are what you see when you click on a website, blog, etc. and along the edge or wherever, a book or some other ad is displayed. If you refresh the page, a different ad is displayed. Each time your book appears on a site, it’s an impression.) This particular advertiser guarantees 10 million impressions over a month’s time. Again I heard the same thing when I asked about why I was seeing very little impact to sales. “Try running your book at 99 cents.”

I’m not saying they’re wrong—just the opposite: they’re right as rhubarb.

But here’s the rub: I’m not going to run my book at 99 cents. Not to garner more sales. What I need is to find a readership that is willing to pay five bucks for a great book.

I’ve gotten comments on my blog from people who don’t have money right now. I get that not everyone has “money to burn” but we’re talking about millions of readers out there. The problem, I believe, is that these same old ad farms are catering to a clientele (i.e. email list, website, etc.) that are in the “expecting 99 cent crowd”.

So an author basically has two choices:

1. Drop your book to 99 cents every time you run an ad to promote it.

2. Stick to your guns, believe that your book is worth at least as much as what you’re charging, and sell fewer.

With #1, you are almost assuring yourself higher sales numbers. Of course, you are making a pittance off each unit sold, but your ranking numbers may get a lot better for a while (assuming you are selling any books to begin with—Amazon, for instance, calculates how many sales you’ve had in the days before your spike, so you can’t just sell a hundred books in one day and have them skyrocket you to number one—at least not anymore). But I say you’re doing something else when you sell a ton of your books at 99 cents:

You are setting a price point in those readers’ minds. Assuming they weren’t already brainwashed into believing the only time to pull the trigger on a book buy is when it drops to 99 cents (and I say many are), they will potentially see your book—and more importantly YOU as an author—as a bargain writer. What I mean is, they know you run specials to garner sales or promote or whatever and they know you will offer your writing for 99 cents (or free, if you’re using KDP Select).

At least with #2 you are sticking to your guns and not allowing a misinformed marketplace to hold your book hostage until you’re willing to drop it’s price. Admittedly, it’s a tough thing to do. We want sales. Who doesn’t? But just as I’ve received comments from people who don’t have extra money to burn, I’ve also heard from readers who, like me, don’t have money to burn, but still recognize a good book is worth more than five bucks (and still go into brick and mortar book stores and buy paperbacks at twice that price and beyond). When I read a sample of a book and like it, I don’t think to myself “ah but they’ll eventually run a free promotion or at least a 99 cent one…I’ll wait.” But I know there are readers out there who do.

And that’s fine. I’ve given more than one book away to people I know are feeling the crunch and feel they cannot afford five dollars for a book. So I’m not saying I don’t believe there are some people to whom five dollars is a lot of money, especially for something that’s not a pure necessity. I wouldn’t give away my books privately if I didn’t believe these people are truly hurting. But I believe there are others out there who have just been fed the 99 cent price so long they became accustomed to it and now feel like they won’t dare spend three, four, or God forbid five dollars on a book. Yet they’ll pay fifty bucks to have their car detailed, or sixty to take the family out to a two hour movie, or a hundred at a nice restaurant—all without blinking an eye.

You know, I used to attend a fair share of NHL hockey games each year here in Denver. Then the Avalanche won a Stanley Cup. They built a new arena (Pepsi Center)—a gorgeous facility that made the old McNichols Arena seem like a round barn with hay instead of ice.

But then, of course, the ticket prices they began a climbin’. Pretty soon, the cheapest  seat in the house—the one that comes with a free rag to stop the inevitable nosebleed—cost over thirty bucks. For one seat. So sixty bucks for you and your wife or best friend to see a game with binoculars. The good seats ran well above one hundred dollars, and still do.

My friends would complain and complain and then shell out their money for season tickets. I said then, you won’t get them to lower prices until you stop paying what they ask. My friends kept complaining and the ticket prices kept going up, year after year. Every game was a sellout. As a businessperson the owner would be crazy to not keep charging exorbitant ticket prices—the stadium was filled every night and there was still a waiting list for season tickets.

Of course we’re talking the reverse here: readers are not going to stop expecting low, low, low prices until good authors start sticking to prices that reflect the quality of their work.

I used to be okay with a 99 cent promotion. I am enrolled in KDP Select and have given my books away for nothing but the fraction a reader pays for the bandwidth to download a digital copy. I now am coming to the realization that authors lowering their prices so enormously run the risk of branding themselves as deal-givers: and too many readers out there will only buy when the books enter the Price is Right freebie zone. 99 cent and free are just about equivalent.

So the first thing I am going to do is find a different market strategy than the same old tired ads running to the same old tired 99 cent buyers. I know there are still readers out there willing to pay a fair price for quality and I am going to figure out a way to reach those readers. And it’s not like I’m not selling any books—I am. And most importantly, every time I sell a book at the price I am asking I know I am reaching a reader who is willing to value books where I (and most realistic people) still believe they should be valued.

As I said, it’s not easy. It is a sacrifice for certain. And it hurts to sacrifice even one sale (at least for me it does). But nothing worth attaining ever took any less. And achieving a turnaround takes time, whether your talking about a professional sports franchise or a marketplace. The housing market is not that dissimilar to the book market, albeit orders of magnitude bigger. Sellers are seeing a similar phenomenon, with houses going for more than 30% less than the “market value” of the house because on the same block there are half a dozen foreclosures for ten, twenty, or even fifty thousand less. Buyers grin and shake their heads, making low-ball offers that would have had them laughed out of the market before the economy collapsed.

It is taking time for the market to recover, but soon people will be able to obtain a fair price for their houses again. I believe the same will happen in the book market. One day we’ll be able to look back on the “99 Cent Days” (or better yet, “99 Cent DAZE”). But not only will it take time, it will also take authors willing to stand by their work and, if need be, take the sales hit for the greater good.

I’m not saying it’s a noble thing to do.

But it’s necessary.

 

25 Responses to Gunfight at the 99 Cent Corral

  1. I’m gonna go out on a limb here and say that I f***ing detest the 99crnt price point. I wrote about this earlier this year. I argued that it has the potential to cheapen your brand and after all of the blood and sweat I put into writing my novel, I’m expected to toss it into the bargain bin from the get go??

    One thing I’m starting to think about Kindle readers (NOT ALL – LET ME JUST SAY) – the majority are cheap shits. They think nothing of throwing down for a 5 dollar Starbucks monstosity (I’m Australian – forgive me), or even a McDonalds meal but they cry poor when they’ve gotta part with 5 bucks for a digital novel that has a solid rating behibd it??

    GIVE ME AN EFFING BREAK.

    The sooner that indie authors loose their slavish addiction to higher ratings and chasing transient burst of sales and declare that “My work is worth more than 99-fricken-cents, the better the marketplace will be for authors.

    In fact, I have argued that the 99c price point should be banned.

    Rant over.

    Great piece once again Rob.

    • rsguthrie says:

      As you know, both from reading my post + your comment (and from our discussions in the past) you and I are firmly printed on the same page! Thanks for commenting, Dean. I love your perspective and I think you are smack on the mark. 🙂

  2. Sorry about the typos. My smartphone keyboard sucks.

  3. Jim Wright says:

    I’m with you on this one, Rob! I’ve stuck with it since publication. I don’t have many sales to date, but the ones I’ve had have resulted in a few good reviews. I absolutely will not “toss it in the bargain bin” for the sake of a few sales. I’ve had quite a number of people cry poor about my book prices and then talk about the Starbucks (gag!) they can’t live without or the high priced clothing article. Nope. I’m sticking with my guns until the reading public realizes that my work is worth ‘at least’ as much as a cup of Starbucks crap!

    • rsguthrie says:

      Thanks, Jim. Amen. I know people tire of hearing the Starbucks analogy but until that line I drive by at 4 PM isn’t FULL of cars, I will keep using it, too. 🙂

  4. Katy Sozaeva says:

    What are your thoughts on the opposite direction the Big 6 are taking with their new $12.99 – $14.99 price points for ebooks? Personally, if I can buy a used paperback for less than an ebook, that’s the route I’m going to take, which sucks, because the author is not getting paid for that used paperback, but the few dollars I have to spend on books I need to stretch as far as I can, and believe me, I am NOT going to spend more on an eBook than I would spend on a paperback, and I think $8.99 for a paperback is a serious rip-off, personally. If I knew most of that money was going back to the author I might feel differently, but my knowledge of marketing and price points comes from a cattle ranching background, and every $10 steak you buy puts maybe 10 cents into a rancher’s pocket… so I figure the publishing business is probably similar, and that it is someone in the middle that’s getting rich off the author’s sweat and my blood … ehrm, money. Personally, I think it’s just publishing companies trying to grab a buck while they can, because there is no way to justify that sort of price point – I won’t even pay that for a hard cover. Maybe it’s because I grew up during a time when a paperback was about a dollar; maybe I’m just cheap, but it seems to me that there is a counterreaction going on that is really ugly here…

    Anyway, great post as always, Rob – thanks for your always well-thought-out posts!

    • rsguthrie says:

      Thanks for the great comment, Katy. I think “Big Five” published books are too expensive and always have been, MOSTLY because (as you point out) a very, very small % goes to the author. I think $2.99 – $6.99 is fair for Indie work, as long as the quality matches the price. I think $6.99 – $9.99 is fair for established authors, but I realize there is a complication there that they are with big publishers and the overhead is insane. I’m just talking from my own perspective on what I have no problem paying (and I am a starving artist who loves to read). I don’t have money to burn. Paperbacks are tricky because they’ve always been so expensive. Funny thing is, I have seen digital versions for known authors at the same or higher price than the paperback.

      • The Big 5 are simply trying to gouge the market by pricing their books in that price bracket but, it has to be said, that they are working on a similar psychology to both Rob and mines. They are standing behind their product and refusing to be told otherwise. In some ways, that’s admirable but, I agree – the 2.99 to 6.99 price point stands as the most appropriate for the majority of eBook titles.

        And to those who cry foul over the Starbucks analogy – get over yourselves – seriously. What I write is quality…and I can make a bloody good cup of coffee btw.

        • Katy Sozaeva says:

          okay, settle down settle down – we’re not all “cheap shits” who are continuously buying coffee and moaning over high book prices! I’m moaning over high book prices because I don’t have much extra money to spend and what I *do* have has to be stretched! 🙂 You better believe if I have, say, $20 to use to buy books, I’m going to buy as many as possible for that price, and while I know the money won’t go into the author’s pocket, I *will* buy that used book rather than pay an outrageous amount for an eBook. For me, anything past $4.99 is a sticking point, and obviously lower is better.

  5. Nice post. I’m with you on this. Personally I would never list a novel for $0.99. I did however publish my initial foray into indie publishing, a small flash fiction collection, at that price point. It seemed appropriate for five stories of 1,000 words or less. So I can also see how certain types of fiction might be better suited toward one price level or another.

    I have read many authors claiming great success at the $2.99 and $3.99 price points. Stick with it and I’m sure you’ll eventually build a following among readers willing to buy at those levels. As you already mentioned above the key will be to get out of those marketing channels geared specifically toward the bargain hunters.

    • rsguthrie says:

      Hi, Nick…thanks for the comment! I agree totally on the lower price for short fiction. That’s actually part of my gut reaction to the 99 cent price point a year ago: what do you sell the short-short’s for? How do you price the manual on how to hook up your cable TV? There definitely needs to be a “low end” for sure. I’m glad to hear you’d never list a novel at 99 cents. I have, and it makes me a bit sick to think about it. 🙁

  6. Caleb Pirtle says:

    I believe that most indie authors are making two grave errors. They spend too much time tweeting and promoting to other authors, who want to sell books, not buy them. And real book buyers in the real world are used to spending $7.95 to $9.95 for a paperback. They won’t blink twice before spending $2.99 to $4.99. To real book buyers in the real world, that’s a deal.

    • rsguthrie says:

      Even though I know part of that comment is directed to me (whether intentionally or indirectly) I could not agree more. Yes, authors are readers, too, but not necessarily of other indie writers.

      The challenge is reaching those “real book buyers” because I agree with you. They wouldn’t balk a second at spending $2.99 – $4.99 for a quality book. In the real world, it IS a deal. I’ve somehow found myself far from Kansas though, my friend.

      • I’ll have to admit, I’m really starting to baulk at following other authors for that very reason too. I’m trying to make meaningful connections with readers – those who will buy my book and encourage others to do so. That’s not to say that I don’t regard authors as readers, but I’d rather develop relationships with authors to discuss our craft, discuss each others styles and support them to find readers.

        I’ve dropped a number of followers recently because I’ve tried talking to them but all I get in response is “buy my book!”

  7. WHERR ARE THE READERS???

  8. Andrew says:

    You know, I don’t actually think the market will recover. The book market that you’re talking about isn’t suffering from economic issues; it’s suffering from quality issues. The indie market is too slanted toward being positive for anyone to trust it, so people just aren’t willing to drop $5 on something that’s likely to be a piece of crap. Or $3. Or, sometimes, even $1. I won’t spend money on indie books anymore, either, because 99% of what I’ve encountered has been crap, and I won’t risk spending money on it anymore. I’ll download something if the author offers it for free but not otherwise. Only if I have prior experience with the author and know I’m not going to get gypped am I will to actually pay for the product. Until the indie market becomes legitimate by actually offering an honest face to the buyers, people won’t be willing to pay “real” money for book.

    • rsguthrie says:

      What I would say in a bit of a rebuttal (not just to you, but since you said you wouldn’t buy Indies because they’re likely to be crap) if a book piques your interest (Indie or not) why would a 2 chapter sample not be enough to tell you whether it was crap? That’s all I do…if a book looks interesting, and seems to have good reviews (I rarely read reviews because how is another person going to know what I like—way too subjective and most people only review when they love it or hate it anyway) I read the writing. If it’s crap, I know within a sentence or two. I never have to read much past that (especially if the book costs less than a latte—if the writing is solid and/or outstanding, I may have just found myself a gem in the rough).

      I think we all agree on the Indie market needing to get to the point where people can trust it better as a whole, but I don’t see dismissing Indie work outright as the correct solution either (though I admit to being very subjective on that point! 🙂

      Thanks for the comment, Andrew. Relevant and well-written as always!

  9. There is great content in this article and in the follow-up comments, as well. I particularily appreciate the focus on reaching readers as opposed to just other authors in the gears of their own publicity. I’m just about to launch a first book and have been wrestling with the price point. Now I have more confidence to keep it above $0.99. Thank you all!

  10. Rob,
    As you know, I am right there with you, experimenting, studying the market, continuing to write. I have two full-length novels listed at $2.99 and three (a trilogy) listed at $3.99. My plan is stick to my guns and keep adding content. I am also experimenting with short stories and mid-length short fiction. Those require a different price point. But I don’t believe we indies do ourselves any good by caving on price. Those who believe all indie books are crap (see some of the comments) aren’t going to change their minds any time soon, so there is no use catering to them. The only way, if at all, to change that perception is to establish a long history of good content. Writers who don’t buy books need to re-think their strategy and put some skin in the game.
    I enjoy the connections I have made with authors in social media, but believe that is one thing and effectively reaching readers is another. So, I am not going to quit writing about writing because I really enjoy it and it is a good way to hone my writing skills. But I don’t think that is the way to big sales numbers. I am still working on that part of the strategy.
    One last thing to pick up on a prior blog of yours, I noticed a typo in James Lee Burke’s new book. If that happened to an indie writer, reviewers would jump on it like ugly on an ape. But for the TP crowd, reviewers will disregard it as just one of those gremlins that comes along every now and then. (It is still a remarkable book, btw.)
    Regards, SW

    • rsguthrie says:

      Thanks, Stephen…outstanding addition to the fray! The one thing that struck me hard (like ugly on an ape) is your observation that JLB would be forgiven instantaneously for a typo where an Indie would be drawn and quartered but even more for this point:

      The book is still GREAT. Good lord, people, give it a rest—if the book is great, what’s a couple of typos? Idie or otherwise! (I saw the same typo, I think, and remember thinking “what difference does this make? A great book nonetheless!”.

      Thanks again, Stephen, and I agree about writing about writing—it does hone our skills if not sell our books. 😉

      • Katy Sozaeva says:

        As a long-term reader and more recently an editor, I have been noticing typos in books for YEARS. I don’t even comment on it unless it’s egregious – however, some of the books I’ve been reading are B.A.D. Among the first of which I noticed were from Leisure books – man, their editing is enough to drive a person nuts! A lot of indies are in such a rush to get published that they don’t do the polishing that is necessary. I recently had to re-refer an author to a content editor, because as a line editor/proofreader, my skills were simply not up to all the work that needed doin’ there… But yeah, it seems some people take great glee in taking apart indie writing, especially, without taking into account you’ll often see just as poorly edited material from other publishers.

  11. Jericha says:

    Although I don’t think staying away from the stadium is likely to lower the sea prices, I DO think that charging more for quality work sets an association in people’s heads that is meaningful and correct – well, two associations, actually. One is that good authors are willing to rest on the strength of their work and don’t need to make it a “bargain buy” in order to entice readers; the other is that writing is meaningful work and good writing should be treated as being worth more than, well, practically nothing. It’s a reciprocal exchange. As usual, you make a very clean argument. Stick to those guns, Rob. Somebody’s got to.

  12. Jon says:

    You hit the nail right on the head

    ” What I need is to find a readership that is willing to pay five bucks for a good book”

    That is exactly it. And they are out there. Believe me. I don’t mind throwing down $5 or $10 for a good book even on KINDLE

    And as for those who say they DONT have money. RUBBISH!!!!

    Those are the same people who are paying $3 or $7 for a coffee down at Starbucks.

    Basically what they are saying is. I don’t think books are worth more than 99 cents. Heck if I could find it for free online ( torrent ) I would go get it there and circumvent amazon altogether.

    Freebie loaders!

    99 cents is just a crazy game

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