Saturday, July 9, 2011

The "VALUE" of your work

I got into a discussion yesterday about pricing and the value (or lack of it) of a book. It got me thinking about all sorts of things, business related and ego related.

When a new product is launched the maker has to entice and encourage others to try it, and thus choose that product over another that might be similar. Let's use crackers as an example, because as we all know, most writers are a little bit crackers.

There are lots of different crackers already on the market. Some are salty, some cheezy, some good for you, some wholesome, some not so wholesome. Your new cracker is similar to the others of it's kind, comes in a similar sized well-designed package, and should have a similar shelf price to the Ritzy ones and the Elvin ones. Eventually, you'll get that price because you've produced a really good cracker but when it's introduced you need to nudge the buyer into choosing your new cracker over an established brand.

You could offer a money back guarantee, but in truth...that's implied and available with every sale, anyway.

You could pack 20% more crackers in the box for the same price, and with crackers, that is a good incentive.

Or you could have a sale. You price your new crackers at 20 or 30 or even 50% less than the other crackers on the shelf. People notice! They say,"what the heck, I'm gonna give these a try!" and they buy a box.

You don't make any money on that sale (not with crackers, anyway) but lo and behold--the customer liked your crackers! They served them at a party! They mentioned them to a person or two or three.

Suddenly you get a call from the market that they are out of your crackers and they want to order more!

And this new batch is priced at or near(er) the price point of the Ritzys and the Elfies!

The VALUE of the product didn't change, merely the cost. So it is , I think with e-books.

I see nothing wrong with pricing Ferris' Bluff at 99 cents, other than the fact that my ego takes a hit with every sale! It's not going to be that price forever, and as it gains an audience and continued 5 star reviews, a price of $2.99 or whatever the market will both bear and allow (think about that one!) is not out of the question.

Oh, I forgot to mention that when the crackers went on sale the Ritzy's and the Elfies were a little pissed off cause, see, that strategy cost them some sales in the short term...and if the quality of MY crackers remains high, it will cost them market share in the long run.

Hey, that's business.

Enjoy reading Ferris' Bluff at a bargain price. Choose to spend your precious reading time with MY book, not somebody else's.

Just don't read it in bed...the crumbs, you know....

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