E-Book Pricing Strategy?

29 replies
Hi Folks, first time post on here. Been reading some great stuff over the past few weeks while I launched a few IM ideas I had brewing for a while.

I'm trying to figure out what is a good price point for an e-book. The e-books are guides (Don't want to explain the market/niche) that will save people who purchase the book around $500-$1500, sometimes more or sometimes less but usually in that savings bracket. This is a lump sum saving. The books are from 10 years experience in an industry and help people bypass expensive legal fees and systems and do it themselves. They include insider info and many unknown industry secrets and tips which would be of great benefit to the reader.

I have my sites up and running and working on the SEO at the moment. Traffic needs to be targeted due to the niche and Adwords is expensive for this market so SEO is my best strategy for now.

I was thinking of starting off with a price point of $80 for each e-book. I know it seems expensive but the information, steps and knowledge provided guarantee the reader to save a large amount of money if they are in this market and they wouldn't be buying if they weren't. If I find people are turning away from the price and having a high bounce or drop off rate at the purchase pages I will consider lowering the price and keep dropping to around $40 to see if sales increase.

What's your view on e-book price strategies and what would you suggest if anything different to what I propose?

Also can anyone recommend a simple cart system for WordPress for people to purchase the e-book through paypal/google checkout and download it.

Thanks in Advance

Bill
#ebook #pricing #strategy
  • Profile picture of the author Eleanor
    Hey Bill,

    Your strategy sounds good - however, I'd also add a bit of research into similar eBooks in your market and have a look at what they're charging and add that to your considerations when pricing your product.

    In terms of a payment processor for Wordpress, I'd recommend Wordpress Simple PayPal Shopping Cart or Easy PayPal Shopping Cart. I've used both with little to no problems.

    You could also just use buttons provided by PayPal and redirect the users to the download page within your PayPal account.

    Hope that helps

    Thanks
    Eleanor
    {{ DiscussionBoard.errors[5009733].message }}
    • Profile picture of the author Tiredtraveller
      Thanks Eleanor

      There are currently no similar e-books or competition in the field. Many don't offer this information in an e-book as it would cut off their main business model which charges a very high price for the service. I did however see a somewhat similar half-baked product that came with a 1 hour consultation which was priced at $300 but it wasn't an e-book just some garbage as the fee was mainly for the 1 hour phone call.

      I'll test out some digital download/e-book cart options over the next fee days to see what works. I want to keep it secure so people can't pass on a url to friends to download the e-book and so on.
      {{ DiscussionBoard.errors[5009890].message }}
  • Profile picture of the author Eleanor
    Yeah, security should definitely be a priority.

    Personally, I find it's qutie rare for people to share/rip off products... "touch wood"! But maybe I've just been lucky. Video security has always been a concern for me but when it comes to eBooks, there's nothing you can do to stop them emailing it to friends after download - which is a real shame but all part of the game I suppose.

    Thanks
    Eleanor
    {{ DiscussionBoard.errors[5009913].message }}
  • Profile picture of the author Top Dog Marketer
    Just make sure to ALWAYS use .95 or .99 or .97 at the end.

    So for example instead of pricing it at $19 price it at $19.95

    Not only will that extra 95cents add up quick but there is actually a lot of psychology behind this pricing structure as well. People associate it with getting a deal and many studies have been done on it.

    A good example is a house could be selling for $400,000 and wont sell but all the sudden they change it to $399,995 and it will sell.
    Signature

    I'm the "Top Dog" when it comes to marketing.

    {{ DiscussionBoard.errors[5009950].message }}
    • Profile picture of the author Justin Says
      Originally Posted by Top Dog Marketer View Post

      Just make sure to ALWAYS use .95 or .99 or .97 at the end.

      So for example instead of pricing it at $19 price it at $19.95

      Not only will that extra 95cents add up quick but there is actually a lot of psychology behind this pricing structure as well. People associate it with getting a deal and many studies have been done on it.

      A good example is a house could be selling for $400,000 and wont sell but all the sudden they change it to $399,995 and it will sell.
      Disagreed

      I love your posts.

      But. I definitely don't think that is always the case.

      Think of it this way.

      Growing up with infomercials and still seeing them nonstop all the time on TV we see 19.95 all the time and 19.99 or 3 easy payments of 24.95 and so forth.

      It's annoying as we know the real price is $20 (we round up).

      So.

      Instead test out different pricing for different products/services.

      I find that $17 or $47 works magic because the price point is $2 about the $5, which means people tend to round down to the closest $5 increment.

      So they might view that as $15. It's not scamming people. It's giving them a decent deal and not making them think too hard about it

      These are just my opinions, as usual. But I do disagree with the "always" part.
      Signature

      My name is Justin Lewis, with Business Optimizer I've been in business for 6 years online with multiple six figure years, here are the tools that have helped me the most: Increase your reviews with this free Review Handout

      {{ DiscussionBoard.errors[5012527].message }}
  • Profile picture of the author Hans Klein
    Originally Posted by Tiredtraveller View Post

    If I find people are turning away from the price and having a high bounce or drop off rate at the purchase pages I will consider lowering the price and keep dropping to around $40 to see if sales increase.

    What's your view on e-book price strategies and what would you suggest if anything different to what I propose?

    Thanks in Advance

    Bill
    A high-bounce or drop off rate doesn't tell you the whole story. You've got to look at how much money you're taking home at the end of the day. For instance...

    Let's say you get 10 out of 100 to take your offer at 47. But you get 5 out of 100 at 97. Which price point makes you more money?

    Initially the $97 does. But that doesn't tell you the whole story either.

    You also have to look at the quality of the customer that comes. Is the $97 customer more inclined to take upsells/backend offers?

    Moreover... sometimes a higher price results in higher conversion rates than a lower product. So... lowering the price in hopes of increased response isn't always the answer.

    Really... it's all about the value-build.

    Is your product going to save $1,500 for each and every customer very easily. If so... this justifies a much higher price than a product where not every customer is going to get these kind of results. I mean... would you trade $500 to save $1,500.

    Other things that can influence perception of value are:

    * Would the customer otherwise have to pay more for your solution?

    * How much time... money... or energy are saving him/her?

    * What level of service are you giving?

    * Are they buying from an expert/or someone more credible than alternatives?

    * Are you the only place to get the solution?

    And the list goes on. In other words... one price point may produce different results with different justification.
    Signature
    The Montello Group
    Copywriting | Publishing | Training
    Your Premier Conversion Collaborative
    {{ DiscussionBoard.errors[5010013].message }}
  • Profile picture of the author Tiredtraveller
    Thanks Top Dog Marketer

    Hadn't thought about that part either. Spending so much time on SEO and writing the books, some of the basic things get overlooked. Hopefully I'll have them all ironed out by the time some traffic appears.

    Bill
    {{ DiscussionBoard.errors[5010031].message }}
  • Profile picture of the author Tiredtraveller
    Thanks Hans Klein

    You've now given me lots to think about. Great information there to be extracted and thought about from your questions, which will go a long way in shaping my plan.
    {{ DiscussionBoard.errors[5010062].message }}
  • Profile picture of the author Turpen
    Make sure your book title and domain are in sync and have terms people are actually searching. As for pricing, you mentioned $80...I would go $77.. there is a whole lot of psychology behind $7 ending price. How much content? You might consider a lower price with an OTO or upsell offer for the bulk of the content.
    {{ DiscussionBoard.errors[5010095].message }}
    • Profile picture of the author jbsmith
      If your market will buy at $80, they will buy at $97 and **may**even buy at a higher price point.

      What about putting together two offerings...

      1. A $97 ebook
      2. A $197 ebook + 10-minute or 15-minute consult with you (since you really know your stuff) to get a question or two answered. Alternative to the phone call (which you can control by allocating one day and having your customers schedule during that day each week) you could instead provide 1-week's email consultation at this higher price point.

      By offering two alternatives, the $197 will get those who really want more than just an ebook while the $197 will make the $97 ebook look like a steal.

      Assume by the way that you will title this a system, course, solution, etc...instead of ebook to give it the proper positioning.

      Finally - at these price points there seems like a good opportunity for partner promotion/affiliate promotion, especially if this field is expensive to advertise into, affiliate programs can work very well. Reason I bring it up is you want to think about that when you setup your payment system. Going with someone like 1Shoppingcart can help you manage your affiliate program.

      Jeff
      {{ DiscussionBoard.errors[5010128].message }}
  • Profile picture of the author Justin Says
    Price your ebooks at a price that is reasonable and of what they are worth.

    Don't price something only because of sales/conversions.

    If your ebook is worth $10, price it at $10 or less. Don't overprice just because you might get a few extra $$. Just my thoughts on that matter of pricing strategies.
    Signature

    My name is Justin Lewis, with Business Optimizer I've been in business for 6 years online with multiple six figure years, here are the tools that have helped me the most: Increase your reviews with this free Review Handout

    {{ DiscussionBoard.errors[5010143].message }}
  • Profile picture of the author jacktackett
    Hans is a great guy and gives good advice, as do others here. You really need to start thinking about testing your offers and price points. For the right information people will pay a tidy sum.

    When I was running data centers it was not unusual for me to budget 50-75K/yr for various 2-8 page reports from folks like Gartner, Yankee Group, and others. I've paid up to 8K for an 8 page report that gave me the information I needed to justify the decisions I made. When you're spending 8 million on a mainframe system 8K is peanuts compared to the cost savings - or compared to making an expensive (career ending) mis step.

    If your customers are use to a high price point then using a lower price may actually hurt your sales - they could think at this low price it can't be good information.
    Don't be afraid to start high and lower your price while testing.

    You can also find someone with experience in your type of market, take them to lunch and ask for help with pricing. You don't have to do this alone.

    Good luck,
    best,
    --Jack
    Signature
    Let's get Tim the kidney he needs!HELP Tim
    Mega Monster WSO for KimW http://ow.ly/4JdHm


    {{ DiscussionBoard.errors[5010175].message }}
  • Profile picture of the author Tiredtraveller
    Thanks Turpen

    I have an up-sell offer where I would package an additional e-book that would apply to most purchasers so as you say I could sell them the main "solution" and offer a discount on the other book or later on use a list to sell them that book. Potential for repeat business is low as there is approx a 2-3 year gap maybe for getting the repeat business.

    Thanks Jbsmith

    Some great ideas. Some of the reasons I'm doing this is to take a step back from my current full time career which can involve many hours meeting clients or talking on the phone to them. Usually there is a lot of time at the moment engaging with people and it takes it toll on you. I want to spend more time with my family hence this direction. One day a week is manageable I guess if people are willing to pay so your idea is a good one for sure.

    The affiliate scheme is a good idea too. I thought that my niche would make affiliate schemes very hard but you have sparked some ideas into my head where some industries could affiliate my product. I'll have to revisit it in the coming months when full developed and see what Warriors are working in close industries.

    Thanks

    Bill
    {{ DiscussionBoard.errors[5010182].message }}
  • Profile picture of the author zamzung
    Hans gave you a great answer, as well as other guys here... first of all, don't be afraid to put higher prices on valuable product... second, if you are sure in value of your product, don't give it away for much less money than what it's worth... if your ebook is valuable as you say, $97 is pretty good price for it... as far as I can tell because I'm not familiar with niche and content of the ebook...

    additionally, you could think about making a smaller ebook with lower price, then offer an upsell or OTO with the rest of information... in some cases you could earn more that way... or, another idea, why don't you create a cheaper of even free ebook to give it to your visitors in order to collect their information if they decide not to buy your $97 product... that way you could get another chance to show them how you are an expert in your field and your ebook is valuable...
    {{ DiscussionBoard.errors[5010277].message }}
  • Profile picture of the author asmartbuy
    I came across the ultimate recommended guide to pricing your wares:
    $7 ebooks = 10-15pg. $7 podcasts = 10-15 min. $7 videos = 10-15 min.
    $27 ebooks = 30-60 pg. $27podcasts = 30-60 min. $27videos =30-60 min.
    $67 ebooks = 100+ pg. $67 = multi-recordings $67videos = multi-recordings

    Hope it helps, Much Success.
    Signature
    Ready To Cash In On The Greatest Transfer of Wealth Ever in Human History? Watch this Jam-Packed Informational video on how you can be in business for yourself, but not by yourself! Click Here.
    {{ DiscussionBoard.errors[5010338].message }}
    • Profile picture of the author fitz10
      Originally Posted by asmartbuy View Post

      I came across the ultimate recommended guide to pricing your wares:
      $7 ebooks = 10-15pg. $7 podcasts = 10-15 min. $7 videos = 10-15 min.
      $27 ebooks = 30-60 pg. $27podcasts = 30-60 min. $27videos =30-60 min.
      $67 ebooks = 100+ pg. $67 = multi-recordings $67videos = multi-recordings

      Hope it helps, Much Success.
      I can see this line of thinking, but I don't think it's accurate. If a one page ebook saved you tens of thousands of dollars somehow would it really be worth less than $7? On the other hand someone could give me 50 videos for $97 and if they were full of gibberish or incorrect information, they'd be worth nothing.

      Don't price based on the format of the information, base your price on the value of the information.
      Signature



      {{ DiscussionBoard.errors[5010790].message }}
  • Profile picture of the author godric20
    Go for 97$ if its really good else go to 47$. Provide a few pages as incentive and you should do well.
    {{ DiscussionBoard.errors[5012544].message }}
    • Profile picture of the author Johnny1975
      I often wonder where the line is between a book and an information product / course. Today I was looking at the content of a series of ebooks that I recently bought. It's a course, and it's 5 separate books. But treating it as one book, these are the details of what's in it :



      * Number of pages : 130 (a few pages here and there are partly blank)

      * Number of words : A very rough guess is 5,000 to 10,000 words, because I couldn't copy and paste them because it's pdf.

      * Number of diagrams : Very few, probably 2 or 3

      * Number of links : 5

      * Audio : 51 clips of audio, total time : 9.5 hours, most of it doesn't really add much value or anything that isn't already mentioned in the text. It's mostly chit chat. The only value that it seems to add is just the fact that it gives you a break from reading. But that's about it. And 2.5 hours of it is from a conference call, and you can't really hear it that clearly, and again it's mostly chat.

      * Video : 5 videos, 2 hours in total (but only 1 video is by the author and it's only 4 minutes long, and it's just chat)

      * PRICE : £97 ($162). But it is advertised as having previously been £300 ($486).



      The same info for the book that I'm working on, bearing in mind that it's not done yet, so this is a fairly good guess :


      * Number of pages : 60 or so

      * Number of words : 7,000 probably

      * Number of diagrams : so far just over 100, all of them very necessary and useful

      * Number of links : none

      * Audio : none

      * Video : If I add video, it could realistically amount to, on average, one 30 second video per diagram, so that's 100 short videos, 50 mins, let's say 1 hour in total. However I recently calculated it to be 3 hours, although I don't know how I came to that figure. But let's say at least 1 hour.



      At first I thought I should charge £5 ($8.36) for my book, and then I thought maybe it could be £10 ($16.72). But now, looking at the figures above, I don't see why I can't charge at least £50 ($83.60).

      Am I being realistic?
      Signature

      The Smart Man's Dating Checklist : What to Look for when Seeking a Good Woman :

      http://www.amazon.com/dp/B00K5ZHTCW

      {{ DiscussionBoard.errors[8954571].message }}
  • Profile picture of the author jbsmith
    You should charge what the market will pay...much of that depends on 1) the problem or interest you are targeting 2) the perceived value of your information/solution 3) competition

    You could have a 30-page report and weekly email series for 6-weeks that promises those who follow the system a way to lose 10lbs guaranteed over that period and get $97 for it (given the weekly follow-ups) - why? Because everyone else is selling JUST an ebook and haven't differentiated (this is just an example, as there are some weekly programs out there - but they are a lot more than $97)

    Think in terms of how you can add extra value - helping to improve on existing information that helps your customer achieve their desired result and you can elevate your price substantially - has very little to do with the # of pages, though adding different "pieces" to your product can certainly help to improve perceived value.

    Jeff
    {{ DiscussionBoard.errors[8954592].message }}
    • Profile picture of the author Johnny1975
      Originally Posted by jbsmith View Post

      You should charge what the market will pay...much of that depends on 1) the problem or interest you are targeting 2) the perceived value of your information/solution 3) competition

      You could have a 30-page report and weekly email series for 6-weeks that promises those who follow the system a way to lose 10lbs guaranteed over that period and get $97 for it (given the weekly follow-ups) - why? Because everyone else is selling JUST an ebook and haven't differentiated (this is just an example, as there are some weekly programs out there - but they are a lot more than $97)

      Think in terms of how you can add extra value - helping to improve on existing information that helps your customer achieve their desired result and you can elevate your price substantially - has very little to do with the # of pages, though adding different "pieces" to your product can certainly help to improve perceived value.

      Jeff
      So would you say that splitting up an ebook into lots of emails would justify charging more? I suppose doing it that way would give the customer enough time to absorb each part, and therefore benefit more from it than they would if they had the whole lot in one go, and look forward to the next installment. I guess that would increase the perceived value, especially if they can think of it as a course over a period of time. Actually that's what the product that I bought was. It was 5 emails.
      Signature

      The Smart Man's Dating Checklist : What to Look for when Seeking a Good Woman :

      http://www.amazon.com/dp/B00K5ZHTCW

      {{ DiscussionBoard.errors[8954608].message }}
  • Profile picture of the author amwarner
    You said that you're planning on selling your ebook for 80? Well before deciding on a set price, you should test out different prices to get a better understanding of what people in your niche will pay.

    You can price it at 79 ... 99 ... 129 or whatever number you feel is necessary. But in terms of pricing, you shouldn't just settle on one price assuming that's all they may pay. If your material is good enough, they would be willing to pay more.

    Just test out your prices and see. Your customers will let you know whet they're truly willing to pay for your products.
    {{ DiscussionBoard.errors[8954599].message }}
    • Profile picture of the author Johnny1975
      Originally Posted by amwarner View Post

      You said that you're planning on selling your ebook for 80? Well before deciding on a set price, you should test out different prices to get a better understanding of what people in your niche will pay.

      You can price it at 79 ... 99 ... 129 or whatever number you feel is necessary. But in terms of pricing, you shouldn't just settle on one price assuming that's all they may pay. If your material is good enough, they would be willing to pay more.

      Just test out your prices and see. Your customers will let you know whet they're truly willing to pay for your products.
      Ok I could do that.

      What is better, charging the most that I think I could get away with and then reducing it if necessary, or, charging very little at first and then increasing it as much as possible?
      Signature

      The Smart Man's Dating Checklist : What to Look for when Seeking a Good Woman :

      http://www.amazon.com/dp/B00K5ZHTCW

      {{ DiscussionBoard.errors[8954618].message }}
      • Profile picture of the author amwarner
        Originally Posted by Johnny1975 View Post

        Ok I could do that.

        What is better, charging the most that I think I could get away with and then reducing it if necessary, or, charging very little at first and then increasing it as much as possible?
        I normally would say that you need to research what others in your field are charging for their ebooks/products, but you said that nobody else in your field is currently selling an ebook.

        What you could do, if you have a list, if offer it for free to a few subscribers (like 2 - 5 of them) and get feedback from them and ask them what they would pay for something like that. That could be a start and could help you determine what to price it at.
        {{ DiscussionBoard.errors[8954884].message }}
  • Profile picture of the author donhx
    Price of the product is a secondary consideration.

    You must first make sure you are offering value. People may not seek a refund for an inferior $9.97 product, but they will seek a refund on a $97 fast enough to make your head spin if they don't immediately think they are getting value for money.

    Your product must have enough value to your customer (not just what you think) for them to think they got a good deal. Otherwise your refunds will kill you.
    Signature
    Quality content to beat the competition. Personalized Author Services
    {{ DiscussionBoard.errors[8954628].message }}
    • Profile picture of the author Johnny1975
      Originally Posted by donhx View Post

      Price of the product is a secondary consideration.

      You must first name sure you are offering value. People may not seek a refund for an inferior $9.97 product, but they will seek a refund on a $97 fast enough to make your head spin of they don't immediately think they are getting value for money.

      Your product must have enough value to your customer (not just what you think) for them to think they got a good deal. Otherwise your refunds will kill you.
      I definitely don't want that. I think my book is very good. But I've never seen anything quite like what I'm doing, which is why the first 3,000 words is a step by step explanation of how my idea works and why it makes sense.
      Signature

      The Smart Man's Dating Checklist : What to Look for when Seeking a Good Woman :

      http://www.amazon.com/dp/B00K5ZHTCW

      {{ DiscussionBoard.errors[8954653].message }}
    • Profile picture of the author Shadowflux
      The price of a product is somewhat determined by your business strategy. I don't mean "I want to make 5 figures a month". I mean the actual plan, the strategy for your entire business, your system.

      How much is this system going to cost you? You have a number of costs such as:

      • Websites
      • Graphics
      • Content
      • Copy
      • Advertising
      • SEO
      • Product Creation
      • Living expenses
      This is what we call Overhead and it's the cost of setting up and running a business. To turn a profit, your total revenue needs to exceed your overhead.

      It's important to create a business plan because you need to have an idea about your overhead and investment costs. If a system costs $1,000 to set up, for example, and your product is priced at $10 then you'll need to sell 101 copies to turn a profit. If your product is $100 then you need to sell 11 copies.

      Keep in mind, however, that the market is what sets the price for goods and services. Simply put, if people won't pay $X for something then it simply isn't worth that much money.

      It might seem like a good idea to price the product at $100 so you cover your overhead in fewer sales but is there a market for your product at that price point?

      You may find that people are more receptive to your product at a lower price. If this is the case, you know you'll need to sell more copies of that product to create a profit. This, then, will determine how much traffic you'll need, what sources of traffic to use, and what sort of budget you'll need to generate it.

      So the price of a product is an important consideration but it's generally decided by external factors, not by a desire to make $X.

      I would suggest focusing on your business plan and letting that tell you how much to charge for your product. Once you've done that, you can try to even things out with great cover art, powerful copy, testimonials, and a massive web of traffic generation.

      I know this isn't really the answer you're looking for but it's an honest one.
      Signature
      Native Advertising Specialist
      Dangerously Effective
      Always Discreet
      {{ DiscussionBoard.errors[8954705].message }}
    • Profile picture of the author amwarner
      Originally Posted by donhx View Post

      Price of the product is a secondary consideration.

      You must first make sure you are offering value. People may not seek a refund for an inferior $9.97 product, but they will seek a refund on a $97 fast enough to make your head spin if they don't immediately think they are getting value for money.

      Your product must have enough value to your customer (not just what you think) for them to think they got a good deal. Otherwise your refunds will kill you.
      I agree that the price of the product is secondary and a person should focus on making sure they offer value, but eventually price will become a factor soon after.
      {{ DiscussionBoard.errors[8954872].message }}
  • Profile picture of the author Jeffery
    Just a few notes that may help you since I sell ebooks in the $75 to $150 range.

    Consider that your ebook is more about people saving money compared to people making money. You said
    people could save $500 to $1500 sometimes more or sometimes less but usually in that savings bracket
    .. Personally, I would spend $80 to save $500 to 1500+.

    Saving money is a "concept" and concepts are hard to sell unless you have a very good "copy writer" word the copy to sell the concept.

    After you have made a handful of sales obtain and publish positive testimonials. There is usually an increase in sells. Press releases also bring traffic which also increases sells.

    Plan ahead now for a copy writer to change your website's copy as you progress through different stages of sells.

    Jeffery 100% :-)
    Signature
    In the minute it took me to write this post.. someone died of Covid 19. RIP.
    {{ DiscussionBoard.errors[8954673].message }}
  • Profile picture of the author Mikhail Hunter
    Split test different price point if possible. In my opinion the best way to price a product is based on the profit margins at various price points. So Let's say you get 1 sale selling it for $197 but when you drop the price to $47 you get 10 sales for the same amount of clicks as opposed to one. Which do you think is the better selling price?
    {{ DiscussionBoard.errors[8955112].message }}

Trending Topics