Price and Royalty Example
There is flexibility in the final price of the book, which in turn determines the level of royalties you receive. Subject to a minimum (to cover costs), you can se the price of the book to pretty much anything you like – the higher the price, the greater your royalties, but the lower the likely number of sales.
For our example, let’s assume a standard 150 page A5 book, black&white, no pictures or images inside, colour glossy-finish cover, and we’ll pick a retail price of £9.99.
Retail Price – £9.99
This is the price on the cover, and the price at which most retail bookstores will sell the book.
Wholesale Price – £4.99
This is the price the book stores will pay for the book. Typically it is 50% of the retail price (the money they make per sale goes to covering their own costs and generating a profit).
Production Cost – £2.58
This is how much the book costs to physically produce
Your Royalty – £2.41 (£1.20 for Bronze level)
This is the money you make per book sold through wholesale/retail channels
Author Price – £2.58 plus shipping and handling (£6.25 for Bronze level)
This is the price you as an author can buy the book yourself. You receive no royalties on these sales, instead you receive the discounted price.
eBook is a little more complicated, but these figures above serve as a good illustration for paperback books.