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Thread: Royalties for paperback are tiny when compared with list price


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MR R J LAIDLER

Posts: 939
Registered: 09/26/16
Re: Royalties for paperback are tiny when compared with list price
Posted: Nov 24, 2017 11:38 PM   in response to: Mrs Julia Evans in response to: Mrs Julia Evans
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Mrs Julia Evans wrote:
MR R J LAIDLER wrote:
The price of my book, which has 225 pages, is £6.99 and I get £1.24 per copy. Printing cost is £2.95 but Amazon add a margin to that though from memory I can't remember what it is. :) This "gross" printing cost is subtracted from the sales price and the author then gets 60% of what's left.

Hey RJL,

Sorry to be pedantic... the numbers are right, but the order you explained how you calculated them is backwards.

You should calculate the 60% first, and THEN deduct the printing costs.

If you did it the way you explained, it would be $6.99 - £2.95 = £4.04 x 60% = £2.42

That would be nice... but, sadly, incorrect.

It should be £6.99 x 60% = £4.19 - £2.95 = £1.24

Just thought I'd mention it because I've seen quite a few people get this wrong.

Best wishes. J

Thanks. :)
MR R J LAIDLER

Posts: 939
Registered: 09/26/16
Re: Royalties for paperback are tiny when compared with list price
Posted: Nov 24, 2017 11:50 PM   in response to: Peter Wooton in response to: Peter Wooton
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Peter Wooton wrote:
I know what the options are and I know what I earn per paperback sold and for a sale price of £6.23 I earn £0.18. Also I know what I earn from each each e-book. I access the report that tells me. The figure quoted is that shown in the report. It was only a comment regarding Amazon / Kindle taking 97% of the sales price of each PAPERBACK, not e-book. There is no problem with e-books. The printing cost for the paperback is £3.45. £2.60 is taken for postage etc. Leaving a royalty of £0.18.

Edited by: Peter Wooton on Nov 24, 2017 11:21 AM

Edited by: Peter Wooton on Nov 24, 2017 11:22 AM

Edited by: Peter Wooton on Nov 24, 2017 11:30 AM

I work out your royalty should be about £0.28 but that makes little difference. If you want to make more money then you either need to put the price up or reduce the cost of printing. Too late for the latter unless you want to start again with a larger trim size - printing costs are directly related to the number of pages, not their size. If you increase the price to £6.99 you will get around £0.74 per copy, which is a little more respectable. :)
Lazarian Wordsm...

Posts: 206
Registered: 04/28/14
Re: Royalties for paperback are tiny when compared with list price
Posted: Nov 25, 2017 6:58 AM   in response to: Peter Wooton in response to: Peter Wooton
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Peter - one of my paperback books is priced $8.99 and on .Com I get $2.48. ($2.91 print)

Amazon.UK £7.07 - I get £1.82. My main market and price control center at sterling price


The rest of Europe - priced at €8.03 I get €2.15.

The difference is printing which in the UK is higher.

Pat

Notjohn

Posts: 23,776
Registered: 02/27/13
Re: Royalties for paperback are tiny when compared with list price
Posted: Nov 25, 2017 10:59 AM   in response to: Lazarian Wordsm... in response to: Lazarian Wordsm...
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So much on this thread is just plain WEIRD.

The paperback version of my book sells at (UK) £6.23. My royalty figure is 60%

In the first place, why pick a nutty figure like 6.23. Why not 6.99? (Or better yet, as others have indirectly suggested, 7.99, 8.99, or 9.99?)

And your royalty figure is NOT 60 percent. Amazon takes 40 percent off the top, then deducts the printing cost, leaving you with a royalty well under 10 percent.

Amazon.UK £7.07 ....
The rest of Europe - priced at €8.03

Again, what sort of madness inspired these prices? I know that KDP Print Beta is a creaky, disorganized mess, but surely it gives you the privilege of naming your own price? Why not £6.99 (7.99, 8.99, 9.99) instead? And in euro, why not €7.99 (8.99, 9.99, 10.99)?

KDP started a race to the bottom in pricing. Now it appears that KDP Print is doing the same.

(Don't trust KDP to publish a print edition. Don't trust CreateSpace to publish an ebook. Each does one thing well and the other thing poorly.)

Good luck! -- NJ

Notjohn's Guide to E-Book & Print Formatting

The blog:
http://notjohnkdp.blogspot.com
Mrs Julia Evans

Posts: 892
Registered: 05/22/16
Re: Royalties for paperback are tiny when compared with list price
Posted: Nov 26, 2017 2:15 AM   in response to: Notjohn in response to: Notjohn
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Notjohn wrote:
In the first place, why pick a nutty figure like 6.23. Why not 6.99?

You get the strange prices when you set your lead price in one country, and allow Amazon to do the conversion for the rest.

I'm not sure people realise they can set different prices on each site.

Personally, I always set my price for UK, com, AU and CA. I rarely get sales elsewhere, so I let the Zon set those prices.

J.
Notjohn

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Registered: 02/27/13
Re: Royalties for paperback are tiny when compared with list price
Posted: Nov 26, 2017 3:30 AM   in response to: Mrs Julia Evans in response to: Mrs Julia Evans
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I'm not sure people realise they can set different prices on each site.

So it's not the price that's nutty, but the publishers? Are they doing the same thing with ebooks?

(Don't trust KDP to publish a print edition. Don't trust CreateSpace to publish an ebook. Each does one thing well and the other thing poorly.)

Good luck! -- NJ

Notjohn's Guide to E-Book & Print Formatting

The blog:
http://notjohnkdp.blogspot.com
Peter Wooton

Posts: 5
Registered: 02/18/17
Re: Royalties for paperback are tiny when compared with list price
Posted: Nov 26, 2017 3:35 AM   in response to: MR R J LAIDLER in response to: MR R J LAIDLER
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Please note this isn't a reply to any specific comment or post. It is a general comment. I had no intention of continuing this thread but after considering the various suggestions, comments and so forth I thought I'd revisit the book pricing elements. It appears the system takes charge and makes odd changes, e..g I did not set the original price at £6.23 - that was a system change. No idea why. Also the print cost had somehow increased from the £3.45 I quoted previously to £3.56. In agreement with previous comments stating that £6.23 is a bonkers price I increased it to £6.99 - and for that £0.67p increase in price the royalty is now £0.63, over treble the previous amount.

Please, I fully understand how the royalties work: list price less 40% to Amazon/Kindle; 60% to myself - LESS printing costs (£3.56) from my 60% leaving me with a royalty (with the slight increase in price to £6.99) of £0.63.

Sale price (£ sterling): 6.99
Less
40% to Amazon Kindle -2.80
Print costs -3.56

Balance £0.63

This is totally different to the calculation when the price was £6.23 and the print cost was £3.45. I have no idea what is going on but it is certainly NOT my maths. I sold two books last week and earned £0.36 total in royalties, i.e. £0.18 per book. Sales volumes and royalties earned are evidenced by the report Amazon/Kindle provides. It appears random changes are made by the system and only by constantly checking can the author keep track of the changes. Again this only applies to the paperback version, NOT the e-book. There are no problems with the e-book

PS If you notice edits these are because it's only after publishing the comment and despite reading the comment many times, do I see typos or poor grammar!

Edited by: Peter Wooton on Nov 26, 2017 3:45 AM
Diana Persaud

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Registered: 10/07/13
Re: Royalties for paperback are tiny when compared with list price
Posted: Nov 26, 2017 5:47 AM   in response to: Peter Wooton in response to: Peter Wooton
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I don't know if you're experiencing a KDP Print BETA issue or what, but I don't have any issues when I use Create Space. I set the price and it tells me what the royalty will be for all of the various countries and expanded distribution and that's what I get.

I make anywhere from $1-$5 profit (per book) depending on the price I set. Some books are priced lower because of the genre.
Donna St Felix

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Re: Royalties for paperback are tiny when compared with list price
Posted: Nov 26, 2017 6:49 AM   in response to: Peter Wooton in response to: Peter Wooton
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A reply in general ......
I think the confusion comes in with the way the currency values change daily in comparison to the US dollar.
I have had spurts where I have gone into my books at CreateSpace and clicked on the auto feature for pricing, then to see the prices adjust up or down for all of my books. If I update prices again with no change to the US dollar price, they will change again.
Lazarian Wordsm...

Posts: 206
Registered: 04/28/14
Re: Royalties for paperback are tiny when compared with list price
Posted: Nov 27, 2017 3:10 AM   in response to: Notjohn in response to: Notjohn
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NotJohn....the price was set in Dollars, then the conversation rate kicked in to give weird pricing - that and the addition of VAT in European markets. Yea VAT on eBooks in the EU, tax returnable to the countrty authorities where the customer resides.

STRANGE PRICING NUTTIN TO DO WITH ME PAL.

I only used my pricing as an example..

Of course I could set the price in Sterling, as with the 20 Minute Reads, but it's knackered as a currency as well.

Be Safe.

Pat
Notjohn

Posts: 23,776
Registered: 02/27/13
Re: Royalties for paperback are tiny when compared with list price
Posted: Nov 27, 2017 1:19 PM   in response to: Lazarian Wordsm... in response to: Lazarian Wordsm...
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STRANGE PRICING NUTTIN TO DO WITH ME PAL.

You set the price, so it has everything to do with you. If you cannot set nation-specific prices using KDP Print Beta, then fer gosh sake don't use KDP Print Beta.

The print edition of my Guide sells for £7.95 in the UK. That's the price I set. It's $9.95 in the US -- the price I set. I use CreateSpace, of course.

(Don't trust KDP to publish a print edition. Don't trust CreateSpace to publish an ebook. Each does one thing well and the other thing poorly.)

Good luck! -- NJ

Notjohn's Guide to E-Book & Print Formatting

The blog:
http://notjohnkdp.blogspot.com
Lazarian Wordsm...

Posts: 206
Registered: 04/28/14
Re: Royalties for paperback are tiny when compared with list price
Posted: Nov 30, 2017 3:48 AM   in response to: Notjohn in response to: Notjohn
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Grand But But But I still have the problem with VAT being applied automatically by Amazon.

As you may know I have been around these forums for a few years - is it three?.

I have played with pricing now and then. Maybe will soon again.

Just mentioned a price that at present I am using in reply to a query in an attempt to get the OP to have a look at his options.

I should have expected a mini-rant BUT not from Notjohn.

Pat
tommy london

Posts: 345
Registered: 08/15/16
Re: Royalties for paperback are tiny when compared with list price
Posted: Nov 30, 2017 9:48 AM   in response to: Lazarian Wordsm... in response to: Lazarian Wordsm...
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We need to get into how to best get and use Adobe/PDF without paying for it. So we can produce my
first Create Space book. On paper. I may be able to get info from some IT expert at my place of work.
They will be helpful. For now, my Formatting has to improve. How do we get WORD to "Justify
hundreds of columns of raw type just by pushing a button. No wonder some Oldies were
laughing at me. One letter wrong, and it turns into salad, or junk, etc.

It is actually, as BASIC, a language invented in 1968, called Machine Code and has 255
characters. You can find this in an old file called Central Point. Valerian anyone?
Shirley Mullins

Posts: 2
Registered: 08/18/17
Re: Royalties for paperback are tiny when compared with list price
Posted: Nov 30, 2017 12:40 PM   in response to: Mrs Julia Evans in response to: Mrs Julia Evans
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THANK U THIS IS MY FIRST TIME N NO HELP WITH IT JUST WENT FOR IT GOOD LUCK TO U AS WELL
Notjohn

Posts: 23,776
Registered: 02/27/13
Re: Royalties for paperback are tiny when compared with list price
Posted: Nov 30, 2017 1:21 PM   in response to: Lazarian Wordsm... in response to: Lazarian Wordsm...
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But I still have the problem with VAT being applied automatically by Amazon.

Of course Amazon applies it, since European governments require it. But it has nothing at all to do with you. The customer pays it and Amazon remits it to the greedy bureaucrats involved. You are as innocent as the newborn lamb. You receive a royalty based on the VAT-inclusive retail price. I raise my prices in Europe to account for that. I see no reason why I should have to eat the VAT.

I figure that a euro is worth one USD, so $4.95 = €4.95. Sterling is a bit dicier. I have previously charged £3.95 for books in that price range, but if the pound keeps dropping, it too may equal one USD.

(Don't trust KDP to publish a print edition. Don't trust CreateSpace to publish an ebook. Each does one thing well and the other thing poorly.)

Good luck! -- NJ

Notjohn's Guide to E-Book & Print Formatting

The blog:
http://notjohnkdp.blogspot.com
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