Are some cheap prices about to rise?

Are some cheap prices about to rise?

On June 30, 2010, Amazon’s new 70% royalty option for publishers that use its DTP (Digital Text Platform) becomes available.

I am basing this information on this

press release

and not any specific contract information.

 DTP authors, you may want to check the DTP site for any additional information there  may be.

The press release said that, in order to get that royalty rate, the books would have to be priced between $2.99 and $9.99 (among other rules).

While that correctly shows Amazon’s price pressure to keep prices under ten dollars (and they’ve been effective at doing that overall in what I call the “prime range”…one penny to fifty dollars), it also may cause some independent publishers (indies) to raise prices from ninety-nine cents and one dollar to $2.99.

Not everybody will do that, of course, or do it on all of their titles.  For some people, they just want to get the boos out there…they will price them as low as they possibly can.

I wanted to compare the prices before and after…although it may take a couple of days before we see the impact.

I ran some numbers today:

0.99          60,983 10%
1            8,560 1%
2.99          19,140 3%
0-299        170,710 27%
2.99-9.99        358,167 57%
Prime        561,314 90%
Prime<10        489,087 78%
Total        625,230 100%

 The first three are price points, not ranges.  So, it’s worth noting that ten percent of the books today are priced at exactly one dollar.

My prime range is one penny to fifty dollars…that’s to eliminate the freebies and the text/technical books.

I’ll re-run this to see if the 70% rate changes these percentages.

By the way, this may bring us a lot more of the backlist, and at possibly lower prices.  Authors who own the e-book rights (especially for older, out-of-print books) may see this as an attractive enough reason to self-publish (or micro-publish).

Oh, and should you buy books priced from ninety-nine cents to $2.98 today, just in case?  In moderation, it couldn’t hurt…  🙂

This post by Bufo Calvin originally appeared in the I Love My Kindle blog.


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