Before I deal with price, let’s come to an agreement
about what true value is. What does the customer feel your product is worth? If
the price is less than value, they will see it as a win and keep buying your
product. If the value is less than the price, the customer is unlikely to ever
purchase your product again.
For ebooks you will probably use something called
“value-based” pricing. You cannot price
an individual novel based on how much work you put into it. If you count up the
number of hours you’ve spent toiling over one specific work and multiple that
by an hourly wage…
Well you see the problem. No one is going to pay $1000
for a book.
Instead, focus on what the customer will feel the product
is worth. There are so many free ebooks out there that many people will pick it
up just for kicks. However, if it’s free, you set an expectation that it is
disposable. The expectation is that
nothing very good is free. Because of something called “psychological pricing”
you may get higher sales if you actually raise your price.
My mother was an artist before she became too sick to
paint. For quite some time she had a great deal of difficulty selling her
artwork. Finally, she asked the owner of a gallery why she thought the
paintings weren’t selling. Her advice?
You guessed it, raise your price. She added a zero onto the price tag and
suddenly her paints were selling quickly. Logical? Not at all. But it works.
BOOKS BY M JOSEPH MURPHY:
Amazon: M Joseph Murphy on Amazon: Paperback and ebook
Smashwords: M Joseph Murphy Author Page on Smashwords
Kobo: M Joseph Murphy Books on Kobo
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