Wednesday, January 5, 2011

Kindle Readers and the Impact of Pricing

For those of us who sell our books on Amazon, we love it when our readers post positive reviews, especially five-star reviews. My Kindle book just picked up another five-star review for the book to add to the two the paperback version had already earned.  Below is the review:

1 of 1 people found the following review helpful:
5.0 out of 5 stars Valuable points for every coach and player, December 28, 2010
Amazon Verified Purchase(What's this?)
This review is from: The Game of Basketball: Basketball Fundamentals, Intangibles and Finer Points of the Game for Coaches, Players and Fans (Kindle Edition)
I just picked this up for my Kindle because the price was right and I coach basketball. It turns out to be the best book on the little things we sometimes forget to teach I have ever read. The author addresses a slew of little things that I take for granted in good players, but then I wonder what's wrong when my players aren't doing some of those things.

Note, the review starts with a comment about the price. The paperback version is over 300 pages long and sells for $17.95 which is actually about $7 below the list price for comparable books on Amazon and from retailers who sell to coaches.  The current Kindle price is $2.99 and I was promoting it on my website for coaches and in my e-newsletter as an introductory price. Now I am hesitant to raise the price.

It is obvious the coach who purchased the book is happy with the information in the book and I am happy he commented positively on the value of the content. But would the coach have purchased the book had the price for the Kindle version been so low?

This may not be conclusive evidence, how can a single example be conclusive, but it does fit with what I have been reading about the importance of pricing of Kindle books.

Just what is the best price for the Kindle version of this book? I would really like to make more per copy but will raising the price lower the sales? How much can I raise the price and not impact sales in a negative fashion? Will raising the price increase sales based on perceived value of the information contained in the book?

The answer to this question will probably only be answered by some experimentation and record keeping over time, but I do believe it is an important one I need to consider. I will have two more Kindle books available in the next 3-4 months and hope to have an reasonable answer to this question before I making these books available.