A Book’s Professional Pricing Calculator

Creating a professional pricing calculator for your book involves several key steps to ensure all costs are captured and the book is priced competitively. Even if your book is to be given away for ministry purposes.

Below is a detailed breakdown of the process:

Step-by-Step Guide to Pricing Your Book:

1. Determine Printing Cost
Base Cost: This is the cost you pay to the printer for each copy of your book. It forms the foundation of your pricing strategy since it is an unavoidable expense.

2. Calculate Author’s Margin
Margin Calculation: Multiply the base printing cost by 1.5 (or add 150%). This margin helps you cover publishing costs (towards a break-even point followed by a profit) and can be allocated towards marketing and future projections.

Author’s Margin Price = Printing Cost × 1.5

3. Include Trade Discount/Reseller’s Margin
Discount Rates: Resellers or platforms often take a commission, which can range from 25-40% for local books and 30-80% for international books.

For example, if a platform takes 30%, you would multiply the #2 price (printing cost + author’s margin) by 140% to get the trade discount.

4. Add Applicable Taxes
Tax Inclusion: Incorporate any taxes that apply in your country. This ensures your book price covers all potential taxable income, avoiding future price adjustments.

For instance, if the tax rate is 16%, you would multiply the price with reseller’s margin by 160%.

5. Conduct Market Research
Market Comparison: Look at the prices of other books in your genre and of similar size. Aim to price your book within the same range to avoid the perception of low content value (if priced too low) or being overlooked (if priced too high).

6. Round Off the Final Price
Platform Policy: Round the final price to the nearest whole number, adhering to any specific pricing policies of the platform you are selling on. For instance, if the platform has a KES 90 policy, adjust KES 840 to either KES 790 or KES 890.

FAQs

a. Full Price Display: What if I want to sell at a lower price for more readers to uptake my book?
Do not undercut other sellers. Always display the book’s full price along with any discount or sale price. That way, the reader always know the market rate and highlights the special offer.

Example: “Original Price: $20, Sale Price: $15”

b. Giving Out the Book for Free: Have Full Price Statement:
Even when giving the book away, mention the full price and indicate a 100% discount. This maintains the book’s perceived value and informs readers of its market worth.

Example: “Original Price: $20, Discount: 100%, Final Price: $0”

Example Calculation: Assume the following for a hypothetical book:

Printing Cost: Kes 250
Author’s Margin: 150%
Reseller’s Margin: 40%
Tax Rate: 16%

Calculation
Printing Cost: Kes 250
Author’s Margin: Kes 250 times 1.5 (150%) = Kes 375
Subtotal: Kes 625
Reseller’s Margin: Kes 625 times 0.4 (40%) = Kes 250
Subtotal Kes 875
Tax Inclusion: Kes 875 times 16% = Kes 1,015
Final total Kes 1,015

Market Research Adjustment: We assume pricing is ok compared to other books.

Rounded Price: Kes 1,090
-On the lower side Kes 990
-On the higher side Kes 1,190

Using these steps ensures that your book is priced professionally, covering all associated costs, and remains competitive in the market.

Reasons why authors give book discount or have a sale of their books:

1. Increase Sales Volume
-Encourage Purchases: Discounts can entice readers who might be hesitant to buy at full price, thus increasing overall sales volume.
-Bulk Sales: Authors may offer discounts to encourage bulk purchases by organisations, book clubs, or educational institutions.

2. Boost Visibility and Discoverability
-New Releases: Offering a discount on a new book can generate buzz and encourage early purchases, leading to more reviews and word-of-mouth promotion.
-Backlist Promotion: Discounts on older titles can renew interest in an author’s previous works and attract new readers who might go on to purchase newer releases at full price.

3. Generate Reviews and Ratings
-Reader Incentive: Lowering the price can increase the number of readers who purchase and review the book, which can improve its ranking and attractiveness on online platforms.
-ARC Strategy: Offering discounted or free copies to early readers in exchange for honest reviews can boost the book’s credibility and visibility.

4. Engage with the Audience
-Holiday Sales: Authors often align discounts with holidays or special events (e.g., Black Friday, Christmas) to attract readers looking for deals.
-Anniversaries and Milestones: Celebrating the anniversary of a book’s release or a personal milestone (e.g., a certain number of copies sold) with a discount can engage the author’s existing audience.

5. Market Expansion
-New Markets: Discounts can help an author break into new markets or demographics by making their books more accessible to a wider audience.
-Global Reach: Reducing prices in specific regions or countries can help authors gain international readers (or marginalised readers) where the book might otherwise be too expensive.

6. Build a Loyal Reader Base
-Reader Loyalty: Regular discounts or sales can keep readers engaged and encourage them to stay subscribed to newsletters or follow the author on social media.
-Incentives for Email Subscribers: Offering exclusive discounts to email subscribers can increase mailing list sign-ups and build a dedicated reader community.

7. Clear Inventory
-Physical Stock: For authors with physical copies of their books, discounts can help clear out inventory, especially if they need to make room for new titles or editions.
-Reduce Returns: Lowering prices can reduce the number of unsold books that might be returned by retailers.

8. Compete with Other Titles
-Market Competition: In a crowded market, competitive pricing can make a book stand out among similar titles, particularly during peak sales periods.

9. Special Promotions
-Collaborative Campaigns: Participating in platform-wide promotions can significantly increase a book’s exposure.
-Cross-Promotions: Authors can collaborate with other authors to offer bundle deals, enhancing the appeal to readers and increasing sales for all involved parties.

10. Personal or Charitable Reasons
-Author’s Initiative: Sometimes, authors might discount their books to celebrate personal achievements or milestones, such as a birthday or the anniversary of their writing career.
-Charitable Causes: Authors may run sales with a portion of proceeds going to charity, attracting buyers who want to support a good cause.

By strategically offering discounts or sales, authors can achieve a range of objectives that help them grow their readership, increase sales, and enhance their presence in the book industry.

While offering discounts or having sales can be beneficial, there are several reasons why authors might choose to avoid these strategies. Here are some key considerations:

1. Devaluation of Content: Frequent discounts can lead readers to perceive the book as lower quality or less valuable. They may start to expect discounts and be reluctant to pay the full price. Also, authors might find themselves reliant on discounts to drive sales, which can be unsustainable in the long term.

2. Reduced Profit Margins: Discounts directly reduce the revenue per sale, which can significantly impact the overall profitability, especially if the book is already priced competitively. The base costs like printing and trade discounts do not change as often therefore, the author sacrifices their own margins in most cases.

3. Consumer Behaviour, Market Stability & Contractual Obligations:
-Train Readers to Wait for Sales: If discounts are frequent, readers might delay purchases in anticipation of the next sale, which can disrupt steady sales flow.
-Undermines Full-Price Sales: Readers who purchased the book at full price may feel dissatisfied or cheated if they see the book discounted shortly after their purchase.
-Discount Fatigue: Overuse of discounts can lead to discount fatigue, where the strategy loses its effectiveness and readers no longer respond positively.
-Equity Among Readers: Ensuring all readers get the same value for their purchase can build trust and equity. Frequent discounts can create discrepancies and potential dissatisfaction among the reader base.
-Reseller Relationships: Constant discounting can strain relationships with resellers or bookstores that prefer stable pricing strategies.
-Publishing Contracts: Authors with traditional publishing contracts might have restrictions on discounting. Unauthorized discounts can violate contractual terms and harm the relationship with the publisher.
-Retail Agreements: Agreements with certain retailers or distributors might include pricing terms that limit the ability to offer discounts independently.

4. Brand Image
-Author Brand: Authors who frequently discount their books may find it challenging to build a strong, premium brand. Consistent pricing can enhance an author’s reputation and brand consistency.
-Perceived Desperation: Excessive discounting may be perceived as a sign of desperation or poor sales performance, which can harm the author’s image.

By carefully considering these factors, authors can make informed decisions about whether to offer discounts or maintain stable pricing. Ultimately, the choice depends on the author’s specific goals, market conditions, and long-term strategy.

What is the best long-term strategy for authors?

1. Sustainable Growth: Building a readership based on consistent quality and value can be more sustainable in the long term compared to relying on periodic sales and discounts. Join in CLC Kenya/ACABA’s Book Programs training in 2025 to explore more.

2. Investment in Other Marketing Tactics: Instead of discounting, authors can invest in other marketing strategies like building an email list, social media engagement, or book signings that can drive sales without reducing the price.