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Knowledge Base / How Do I Set The Retail Price For My Ebook?

How Do I Set The Retail Price For My Ebook?

Modified on: May 28, 2022

TABLE OF CONTENTS

  • Ebooks and the Litchmill Bookstore
  • Ebooks and Global Distribution
  • Profit vs. Revenue
  • Determine a Retail Price
  • Fixed List Price
  • Ebook Retail Pricing Minimums and Maximums
  • Why must my Litchmill Bookstore price match my retail price?

You can sell your EPUB ebook on the Litchmill Bookstore and through our Global Distribution service.

Ebooks and the Litchmill Bookstore

Litchmill offers ebooks in two formats: EPUB and PDF. Please note that a PDF Ebook can only be sold on the Litchmill Bookstore and is not eligible for Global Distribution. Ebooks sold on the Litchmill Bookstore do not require an ISBN, though all other metadata must be included.

Ebooks sold on the Litchmill Bookstore can be listed for free as well. This is a great way to promote your book or create ‘short’ versions as a marketing tool.

Ebooks and Global Distribution

Using our Global Distribution service, you can create and list your EPUB ebook. Your ebook must meet all retailer standards for sale on their site and must comply with Litchmill’s Ebook Distribution Mandatory Requirements.

Unlike a printed book, ebooks cost very little to create and have no production costs associated with selling them. Because there is so little cost to produce an ebook, the minimum retail price is set at $0.99 per ebook. This ensures everyone (you, the retailer, and Litchmill) earn something from every ebook sale.

Profit vs. Revenue

Before we begin setting a price for your ebook, there are a few terms you should be familiar with if your intention is to earn income from sales of your ebook.

Profit is the net income for your business after other expenses have been accounted for, including payment to authors, pre-production, labor, marketing, and overhead costs such as utilities and rent.

Revenue is a general term for any money Litchmill pays you for book sales.

Determine a Retail Price

You may have created the best book ever on your chosen topic, but if the wrong price is set, your sales and/or revenue will suffer. Thankfully, setting the right price for an ebook is less challenging than for a printed book. Without print and production costs, ebooks need only cover the minimum listing price (on Litchmill that is $0.99). Anything over the minimum is profit!

Retail Pricing Calculator

Since no single pricing formula works for all projects and no formula assures maximum creator revenue, every author must approach retail pricing individually.

Litchmill provides a Retail Price Calculator. You can use this tool to estimate the revenue for each retail channel when selling your ebook. Please note that all ebook revenue amounts are estimated, as the final percentage of retailer’s share differs based on region and currency conversions.

You’ll also see the pricing for each retail channel we offer:

  • Litchmill bookstore
  • iBookstore
  • Nook
  • Kindle
  • All Others (including Kobo)

Our price calculator offers two ways to plan your ebook price: with a revenue goal and at a fixed list price.

Revenue Goals

If you opt to set your list price based on a revenue goal, we’ll automatically provide the lowest possible retail price while meeting your goal. It’s that simple. We do all that math for you!

For example, you may decide you want to earn $5.00 from every ebook sale. No matter what the listed price is, you want at least $5.00. Simply set your revenue goal to $5.00 and we’ll display the retail price for each channel and in each currency:

Note that most retail channels will provide more than $5.00 per sale in revenue. We match your desired revenue amount to the lowest revenue channel (in this case Kindle); once we establish which channel will offer the least revenue, we set a minimum price to reach that goal. All other channels must match this price.

Fixed List Price

The fixed list price option will allow you to set a specific retail price for all currencies. Then Litchmill will once again do the math for you and display how much revenue you’ll earn for each channel based on that list price.

In this example we have a fixed price of $9.99, a very standard price for an ebook. Litchmill has calculated the revenue for each channel and displays that amount for you to review.

Ebook Retail Pricing Minimums and Maximums

Selling your ebook through Global Distribution requires adhering to Litchmill distribution requirements as well as each retail channel’s pricing model. All retail channels provide a minimum ($0.99 for all ebooks) and a unique maximum price. Below, find the currency adjusted list of maximum pricing for an ebook:

  • USD – 200.00
  • EUR – 215.00
  • AUD – 220.00
  • GBP – 150.00
  • CAD – 200.00

Why must my Litchmill Bookstore price match my retail price?

A single retail price is not only a good business practice, but it also ensures that retail partners are not selling your ebook at a disadvantage. This practice also complies with markets operating under a “fixed-price law.”

Ebooks with Global Distribution therefore have one list price for retail sales on Litchmill, Kindle, iBookstore, Nook, and other bookstores. The list price must be the same for all retail channels.

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