Ready, steady, agency

And so finally, almost six weeks after Hachette embarked on its "short" transition to agency terms, Amazon has acquiesced.

A short note next to Kindle Editions published by Hachette, Penguin and HarperCollins now reads: "This price was set by the publisher."

And so the fun begins. A thread on the Kindle blog appeared first thing this morning, with the title: "Big price rises for ebooks".

Here are some out-takes:

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"This morning at least one Jill Mansell book has actually doubled in price overnight to nearly £9!"

Jill Mansells 'Take a Chance on me' now £8.99, thats the one that was around £5 yesterday - publisher is Headline, all her other books on my list are now priced at £4.49, with one at 3.99

Maeve Binchys 'Finding Frankie' is now £9.99 that has been as low at £7.60, publisher is Orion, also her 'The Maeve Binchy Writers Club' is now £9.99, that was around £6.50 yesterday, all her other books on my list are between 3.99 and 5.69

Elizabeth Chadwicks 'The Running Vixen' has jumped about £1.50 to 6.99, publisher is Little Brown Book (I think they are part of Hatchet)

Elizabeth Buchan's 'Seperate Beds' was the smallest increase, it went from £4.27 to £4.99, publisher is penguin

The only book on my wish list that went down overnight is 'The Peoples Queen' by Vandora Bennet, the publisher is Harpercollins

Michael McIntyre and Stephen Fry have more than doubled to £12.99 overnight. Stephen King's After The Sunset, which I was thinking of buying yesterday for around £5 is now £17.99.

The Michael Caine autobiog, Hardback £9.00, Paperback £5.99, Kindle £12.99

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I've said before that I think publishers should speak out to their customers about the importance of agency pricing, but I doubt they will. Penguin has written to agents; Hachette has issued one short statement to The Bookseller. Perhaps they like being seen as the bad-guy.

In the meantime, there are bound to be anomalies of the kind highlighted above, particularly as publishers transition different retailers, and perhaps even different titles to the new model.

There may even be longer term confusion as publishers learn how to price to the end-consumer.

For instance, it simply cannot make sense that The Fry Chronicles is now cheaper to buy as a hardcover book £9.76, than an ebook (£12.99); or that Michael McIntyre's  Life and Laughing is £3 cheaper to buy as a hardback, than a Kindle edition; while Life by Keith Richards is a pound cheaper as an e-book than a p-book.

However, the fact that Michael Connelly's The Reversal is priced at £5.99 as a Kindle edition, compared with a hardback street price of £9.49 does hint at something a bit more sophisticated to come.

Interestingly, the Amazon Kindle bestseller chart features four agency priced books in its top 10, the most expensive of which is the McIntyre. Perhaps of greater interest is that Stephen Fry's first memoir Moab Is My Washpot (priced at £2.84 by the non-agency folk at Cornerstone) is now outselling the Kindle version of The Fry Chronicles priced by Penguin at £12.99.

Comments

pricing on kindle

Pamela St Abbs's picture

Fortunately, those of us who are self-publishing on kindle can set our own prices. However, changes to the percentage paid to author/publishers by Kindle has encouraged author/publishers to opt for a minimum pricing of £1.50. This is not a lot to pay for a book and allows independents to see a small return.

Hopefully, main stream publishers will see the advantages of Kindle and the like and accept that the digital book is cheaper than paper books to produce and pass that saving on to readers. 

Agency pricing for e-books

In theory agency pricing model is good way for publishers (and authors) to protect revenue but it is always a trade off between volume and margin.  What this shows is that most publishers (with possible exception of Penguin?) have no idea about the right price point for e-books and unless they get this right quickly they are going to suffer from piracy the same way as the music industry has and if the idea that piracy is OK because e-book prices are too high takes hold then they have possibly lost the war - at least for best sellers.

They also need to get territorial rights/restrictions sorted for e-books ASAP but then that may not be in their (short term) interest - witness their attempts to restrict sales of e-books by Smiths and Waterstones to UK residents.

Agency pricing

I can of course see why agency pricing appeals to publishers, because they are now able to close the gap between low Kindle prices and higher paper book prices, and thus stop losing valuable revenue to (unnecessary?) Amazon discounts. If people are willing to pay nearly the same for their ebooks as for the current paperback/hardback version, then there is no reason to price the ebook significantly lower. However, I doubt that ebooks that are priced higher than the current paper version will sell well, and it would be really interesting to see some stats on this in a few weeks/months. I guess the fact that Moab is my Washpot (which I have bought and read on my Kindle) is outselling The Fry Chronicles (which I want to read, but would never buy at the current Kindle price!) may be an early sign.

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