If you are interested in blogging or want to promote your book, please contact E. B. Davis at writerswhokill@gmail.com

Our July author interviews: Ellen Byerrum (7/5), Day of the Dark anthology authors (7/12 and 7/19), and Nancy Cole Silverman (7/26).

Saturday Guest Bloggers in July: 7/1--Fran Stewart, and 7/8--Nancy Cole Silverman. WWK Saturday bloggers write on 7/15--Margaret S. Hamilton, 7/22--Kait Carson, and 7/29--E. B. Davis.


“May 16, 2017 – The Women’s Fiction Writers Association (WFWA) today announced the finalists of the second annual Star Award, given to authors of published women’s fiction. Six finalists were chosen in two categories, General and Outstanding Debut. The winners of the Star Award will be announced at the WFWA Retreat in Albuquerque, New Mexico on September 23, 2017.”

In the general category, WWK’s Carla Damron was one of three finalist for her novel, The Stone Necklace. Go to Carladamron.com for more information. Congratulations, Carla!

Congratulations to our writers for the following publications:

Warren Bull's new Lincoln mystery, Abraham Lincoln In Court & Campaign has been released. Look for the Kindle version on February 3.

Shari Randall's "Pets" will be included in Chesapeake Crimes: Fur, Feathers, and Felonies anthology, which will be published in 2018. In the same anthology "Rasputin," KM Rockwood's short story, will also be published. Her short story "Goldie" will be published in the Busted anthology, which will be released by Level Best Books on April 25th.

In addition, our prolific KM will have the following shorts published as well: "Sight Unseen" in Fish Out of Water, Guppie (SinC) anthology, just released, and "Making Tracks" in Passport to Murder, Bouchercon anthology, October 2017.

Margaret S. Hamilton's short story, "Once a Kappa" was published as a finalist in the Southern Writer's Magazine annual short story contest issue. Mysterical-E published her "Double Crust Corpse" in the Fall 2016 issue. "Baby Killer" will appear in the 2017 solar eclipse anthology Day of the Dark to be published this summer prior to the eclipse in August.

Linda Rodriquez has two pending book publications. Plotting the Character-Driven Novel will be released by Scapegoat Press on November 29th. Every Family Doubt, the fourth Skeet Bannion mystery, is scheduled for release on October, 18, 2017. Look for the interview by E. B. Davis here on that date!

James M. Jackson's 4th book in the Seamus McCree series, Doubtful Relations, is now available. His novella "Low Tide at Tybee" appears February 7 as part of Lowcountry Crimes: Four Novellas, which is available for order.

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Sunday, October 21, 2012

Understanding Amazon’s Book Pricing – An Update


In my July 22nd blog I discussed the mysteries (to me, and apparently also our readers) of the logic behind Amazon’s pricing. I promised to follow the pricing of Catherine Coulter’s Backfire over a three-month period to see what I could learn. Time’s up and as Regis would say, “Our survey said...!”
Below is a graphic depiction of Backfire’s price on Amazon (hardcover), Barnes and Noble (hardcover) and electronically for the Nook and Kindle.



One thing that is clear from this graph is the effect of publishers setting prices for e-books. Throughout the study period Amazon and Barnes & Noble priced their e-book versions of Backfire at $12.99. It will be interesting to see what happens to e-book prices after implementation of the judge’s order that now allows retailers, not publishers, to set e-book prices. I've decided to pick Michael Connelly's The Black Box to follow through a three-month selling cycle to see what I learn and then pass that information on. It's currently pre-publication hardcover price is $18.21 on Amazon and $18.93 on B&N. Both have electronic versions at $14.99.

Another clear point is that if you are patient, you can pay considerably less than the pre-publication price. Shortly after the book became available, the price dropped; it stayed lower for a bit more than a week, climbed higher and since then has bounced around both higher and lower. Marketers (and economists) know that people who pre-order something have a stronger motivation to buy it, and consequently are willing to pay a higher price.

In comparing Amazon and B&N, I must confess to several problems. First, I would usually remember to check prices first thing in the morning. I did not catch any mid-day adjustments. This is only a minor issue. However, in the midst of this analysis my father took sick and died, and I missed recording any book prices between 9/2/12 and 10/6/12. Consequently, the big long slide pictured after 9/2 is the program connecting two distant points with a straight line. I have no clue what happened in that month.

However, those flaws do not affect the general story of this analysis: prices fluctuate widely over time, but there is not much difference between Amazon and B&N.

Here’s a second graph that illustrates the comparisons between the two book sellers:




Fifteen of the twenty-two data points have Amazon and B&N showing equal prices. Four of the remaining seven observations show B&N with a higher price than Amazon. Of the three where B%N was lower, two were within the last week and a walloping $.02 lower. Is this price equality collusion between the booksellers?

Probably not and here’s why. Amazon has a link you can click for any book that allows you to report a lower price somewhere else. This mechanism alerts them to situations where they are priced higher than the competition. For another online retailer they only ask the date, book price and shipping cost; for physical stores they ask the store name, location (city, state), price and date. Amazon has enlisted millions of unpaid price-checkers to make sure they are the low-cost provider.

I recall a case study of the airline industry from my MBA days. An airline would publish a new (higher) airfare essentially as a trial balloon. If the other airlines matched the airfare, the new higher fare would stick. If the other airlines didn’t match the increase, the first airline would reduce their fare to the original level. (This was decades before the current airline pricing structure that prices each seat according to a plethora of factors—and that’s an aside I won’t pursue.) Airlines were big moneymakers back then—until the discount airlines entered the business and didn’t play by the gentlemanly rules of the day. Even so, just this week I read in USA Today that Southwest increased fairs by a few bucks and it was being matched by other airlines.

The big publishers were a closed club like the airlines of old and could dictate pricing. Was and could are the operative words here. They can still set a “retail” price for their books, but as evidenced by Coulter’s Backfire, which listed at $26.95, the online price has been discounted anywhere from 32% to 45% (as of this writing). Publishers still controlled pricing of e-books (at $12.99, a discount of 52% from the hardcover price), but have now lost that as well.

Others have done analyses comparing what an author makes on the sale of hardcover, paperback and electronic versions of the same book when using the big publishers. Amazon’s new pricing flexibility may change the mix of books sold—it may even change the number of books sold. A major factor for traditionally published author revenues will be whether Amazon’s pricing structure will also affect what they pay the publishers, which is what ultimately affects what authors make. If so, that will be another death knell for the large publisher’s model.

Next week, I plan to discuss what all this might mean for Barnes & Noble.

~ Jim  

6 comments:

E. B. Davis said...

I only know my own behavior. When I come across newly released big Publisher paperbacks that I want to download in e form and the price is the same as the paper version--I don't download it. The $7.99 paperback price (not trade) in e format would kill my budget. Their price policies force me to put my name on the backlog list at the library. I'll wait to read the book on the shelves before I buy it at that high price point. There are so many other choices (perhaps not all gems) at lower prices that I can't and won't pay that much. The highest I've paid--$5.99 and I really shouldn't have bought the book.

Gloria Alden said...

I buy books especially at the conferences I attend. I know I pay too much for them there and try to stick to the paperbacks as much as possible, but I want to support the writers as well as get books that sound interesting to me. Other than conferences my buying is limited to a local used book store and very occasionally Amazon. Does it hurt my budget? Well, being retired on a limited income, yes, to some extent, but I'm frugal in other areas. I rarely shop for clothes or other things many people do, and I do use the library for my two book clubs' picks each month. I think almost everyone has areas they splurge in. For me it's books like Louise Penny's latest even though it's in hardback. I did get it discounted through the Mystery Guild Book Club, though.

Warren Bull said...

If there is a name for the shape of the curve you presented, I don't know it. So the best time for a reader to buy a book is — who knows?

James Montgomery Jackson said...

EB,

Price points are interesting to me for a number of reasons. Ignore for a moment the question of what publishers should make and concentrate on this question:

How much should a reader pay you (the author) to enjoy (say) 4-8 hours reading your work? Should it matter whether the reader is enjoying a hardcover book, paperback or e-book?

~ Jim

James Montgomery Jackson said...

Gloria,

I agree we pay extra to buy books at conferences (or at bookstores for that matter). I think of it as supporting the author, the conference and the (often independent) bookseller.

~ Jim

James Montgomery Jackson said...

Warren,

Hard to answer your question based on one book. However, I suspect that if you are patient, waiting several months from publication will earn you a lower price for hardcovers.

Currently, there's no reason to wait on e-books.

~ Jim