- The price based on price perception
The funnel book
After all, the price you should ask for your book depends on its purpose. Do you want to sell as many books as possible in the first place or is your primary goal to get more exposure and build authority?
Purchase costs or investment?
Before you calculate the selling price of your book, you should consider whether you view the production costs of your book as an investment or as a purchase cost. That sounds the same, but it isn’t. If you use the cost price model, you usually consider the costs for the production of your book as purchasing costs for your company. Purchase costs are the costs for everything you need for daily use in your business. In that case, the proceeds of the purchased items contribute directly to your turnover or even constitute your entire turnover. Do you choose this model? Then your goal is to sell as many books as possible for the highest possible price and/or with the highest possible margin.
Do you see your book as an investment? Then you see your book as a marketing tool. Ultimately, it also contributes to increasing your turnover, but strategically, in the longer term. That does not exclude the fact that you also want to sell as many books as possible in this case, because a large sale is also recommended if you want more brand awareness, for example.
This trade-off determines how you approach marketing, of which the price of your book is an important part. You really have to discuss with your accountant how you process the costs. Now let’s take a closer look at the models.
The cost price model
In the cost price model, all production costs (such as editing, design and printing costs) are first added up. The sum of this is divided by the print run and then multiplied by a margin, which is usually +/- 500%. Finally, 9% VAT is added to the unit price that rolls out there, which must be paid to the tax authorities after the sale.
Furthermore, a margin of 45% usually VP Audit Email Lists goes to the bookstore. Do you self-publish your book? Then the rest is yours. Does a publisher publish your book? Then you receive royalties, usually about 10% of the net sales price.
Determining the price of your book is more than a simple calculation. It’s part of your book. A book that is four times more expensive than the average book in the same category will come across as very different from a book that costs less than a tenner. The price also influences not only how people see your book, but also how much commitment they have to do something with it.
It is often smart to choose the same price category as the books you want to be among. With that you say that your book is also ‘that kind of book’. Or go above and beyond to show that your book offers more value than the rest. The trick is to find the balance between what you want your book to radiate and yield, and what consumers expect from your book and are willing to pay.