How to Set a Price for Your Self-Published E-Book

Congratulations! So you've made the smart decision of self-publishing your e-book, and now all you have to do is come up with the right price to sell it for. You don't want to sell your e-book for too low a price; yet you don't want to scare potential buyers off from setting too high a price.

Whatever price you designate, keep in mind that going the e-book route will allow you to keep the majority, if not 100% of your profits. Generally, if you had gone the print route with a publishing company, you would have earned about $0.64 for each $8 paperback sold, $0.75 for each $13 trade paperback sold, and $2.50 for each $25 hardcover book sold. You would have to sell an EXORBITANT amount of copies to earn a respectable profit that you deserve.

Here are important points to consider if you're at the stage of setting a price for your e-book. Use these tips to designate a price that is comfortable for you!

1) Use the psychological pricing method. Experts say you should always end your price in the numbers 5, 7, 8, or 9 because they are the most visually and mentally appealing. Stay away from the numbers 0 or 1 because they are the least appealing.

2) Determine the value of your e-book. Put yourself in the buyer's shoes when measuring the value. A perfect example is pricing an e-book that explains how to start a llama farm business. Imagine the time you would have to invest in researching how to even begin to start a llama farm business, but you can buy the e-book that explains the process and breaks it down into a simple step-by-step procedure for $8.97. Wouldn't it be a relief and much easier just to spend $8.97 and learn everything you need to know versus spending hours on research? It's best to measure the value of your e-book when setting a price.

3) Set a price within the impulse-buy threshold. People will usually make purchases based on emotion first and rationality second. Impulse-buy prices are usually set between $1.99 and $4.99. Some authors believe that buyers may not read impulse-buys and setting too low of a price may deter people from actually reading the e-book after being purchased. These are points to consider when setting your price within the impulse-buy threshold.

4) Compare your e-book to others in its genre or competitors. Take a look around the web and see what other self-publishers are charging for their e-books. Take note of their sales numbers and strategies to get a good idea. Stay away from e-books through publishers because their prices are usually grossly inflated. Remember -- since you're a self-publisher, no price you choose is set in stone! Perform tests and change your pricing later on if you feel it's too high or too low.

Are you a self-publisher with any best practices for determining e-book prices? Have you learned anything new about e-book pricing? Share it with us!