How to set the sales price for an ebook in a foreign market
In a previous post, we wrote that opening up multiple sales channels is one of the key factors for success in ebook marketing. Before you can sell in more than one territory, you need to set your sales price. This is an essential element of your marketing strategy.
You have undoubtedly become an expert on your local market over the course of time. Many publishers, however, are perplexed when it comes to setting the sales price for a book on a foreign market: How should they go about this? Here are a few pointers we usually suggest to our partners.
A good starting-point is converting the price into the desired currency. One tool you could use is the Daily Currency Converter available from the Bank of Canada. Since the exchange rate fluctuates daily, exporting entails foreign-currency-related risk that will directly impact your revenues. However, major variations are usually rare, especially in the industrialized countries. For this reason, you can choose a price that’s pegged to the rate for the day in question. If you wish, you can also plan to revise your sales prices on a quarterly basis.
Compare and adjust…
Once you’ve done the conversion, look for pricing information for similar books already on the market, against which you can compare your converted price. Price levels on the North American and European markets are generally similar.
On the other hand, if you’re looking to open a point of sale elsewhere – in Latin America or Southeast Asia, for example – you’ll likely find that your price is much higher than the local average. You’ll need to decide if you wish to adjust your price accordingly. Is a print version of your book also available in this territory through one of your partners? If so, this should factor into your decision.
… keeping certain constraints in mind
Nonetheless, the following parameters do need to be considered:
– Does one of the sales channels you wish to open up impose pricing scales? If so, you will need to format your price to make it compatible.
– Does a single-price law apply to digital formats? If so, what are the limits?
– Does the price have to be quoted net of – or including – sales taxes? If you don’t know, the Cantook platform will tell you when you enter your price.
– Do you need to set a regional price that applies to various countries with different tax rates (e.g., a single price for the entire euro zone)? If so, you should keep in mind that tax rates vary from one country to another, which means you need to set a price that will produce a worthwhile profit margin in most countries.
Obviously, every case is unique and you need to develop your own method. The nice thing is that our Cantook technology makes price adjustments very easy: You can amend your prices anytime, depending on your results. Here’s to your success!