With the recent tariffs imposed on goods imported from Mexico, Canada, and China, it’s more important than ever for authors to understand how material, production, and shipping costs can affect book pricing and profit. Mexico and Canada are key suppliers of wood pulp, which is essential for paper manufacturing, while China plays a significant role in providing paper products and print production. As a result, the imposed tariffs may lead to increased book production and shipping costs.
Initial push back from the publishing industry led to exemptions for Bibles and other religious books, along with a reduction in tariffs on children’s books, but there is still some uncertainty about how this will all shake out for the book industry as a whole. There is also some concern as to whether U.S. printers have the capacity to take over the production of books that are currently printed in China, and if their production costs will be competitive.
In the end, pricing a book is about finding a balance between making a reasonable profit and competing in a crowded, constantly evolving marketplace. A book’s price can ultimately affect its potential for success, so it’s crucial authors consider all factors that contribute to pricing and income potential.
Your chosen publishing path and the platforms used for distribution will both greatly affect the amount of pricing control you have and the amount of money you can earn on book sales. Traditionally published authors, for example, have no say in their book’s retail pricing, as this is set by the publisher based on factors such as the book’s genre, length, format, and author popularity. Traditional publishers are in the business of making money and know the market well, so they will ensure the pricing is competitive and profitable.
For traditionally published authors, the amount of money earned on each book sale (also known as “royalties”) ranges between 5% and 15% of the retail price for print books, and around 25% for eBooks. Because traditional publishers cover the up-front editing, design, and production costs, this royalty percentage is lower than what authors can earn using alternative publishing paths. Traditionally published authors also need to factor in the commission paid to a literary agent if represented by one when securing the publishing deal. Literary agents typically make 15% commission on any advance payments and domestic sales, and 20% commission on foreign sales.
At the other end of the publishing spectrum is independent publishing (do-it-yourself). Authors that publish independently have complete control over their book’s pricing and can typically earn royalties ranging between 35% and 70%, depending on the distribution channel and book format. This is because independent authors cover all up-front costs, handle all of the pre-publication and publication tasks, and retain all book rights. Amazon Kindle Direct Publishing (KDP), for example, pays authors a 60% royalty for print books, minus the printing costs. If you choose Amazon’s Expanded Distribution program, which allows for sales outside of Amazon, the royalty drops to 40%. For eBooks, Amazon KDP pays authors a 35% royalty for books priced below $2.99, and a 70% royalty for eBooks priced between $2.99 and $9.99. The royalty rates for eBooks are higher on most book distribution and sales platforms due to lower production and delivery costs.
Independent authors can sell direct to readers on their own website using an ecommerce tool like Shopify, earning up to 100% royalties minus any processing or shipping fees. Selling books in-person eliminates the need for any service providers, letting authors pocket every penny earned. Authors can also offer special bundles or merchandise at events to increase their revenue even more.
For authors pursuing a hybrid publishing or assisted self-publishing path, the amount of pricing control and royalty rates will vary, depending on the provider service offerings and contract terms. It’s important to review any contracts carefully before signing and to consult an intellectual property attorney with any questions or concerns.
There are a lot of elements that go into preparing a manuscript for publication and printing a quality product for readers to enjoy. This is where authors really need to dig into the details to fully understand all costs involved in publishing a book. There are both pre-production and production costs that may be the author’s responsibility, depending on the chosen publishing path. Here are the most common costs that need to be considered:
Pre-Production
Editing: All authors should hire a professional book editor once they’ve completed any self-editing. The amount of editing a book needs depends on two things: publishing method and personal practices and skills. Professional editing can cost a few hundred dollars or several thousand, depending on the book's word count and level of editing required.
Interior Design: To meet reader and retailer expectations, books must have a professional interior that adheres to industry standards. This includes front matter, the body of the text, and back matter. Traditional publishers will handle the interior design for their authors, while authors pursuing other publishing paths will need to hire a designer or do the work themselves.
Cover Design: Many readers DO judge a book by its cover, so cover design is not an area where you want to skimp. It’s critical your cover is eye-catching, readable, and appropriately fits your genre and story or topic. Traditional publishers will handle the cover design for their authors, while authors pursuing other publishing paths will need to hire a designer or do the work themselves.
ISBNs and Other Barcodes: An ISBN (International Standard Book Number) is required for each format of your book. The back cover of your physical books must contain certain codes for retail stores to carry them, and libraries require additional codes for placement in their establishment. These codes have fees associated with acquiring them, which may be covered by your publisher.
Production
There are several factors that will determine how much it will cost to produce your book. These include:
Book format:
Hardcover vs Paperback: Paperbacks are less expensive than hardcovers to print, but authors can charge readers a premium for a hardcover book. Some genres such as cookbooks, academic, and children’s picture books warrant a hardcover offering because readers expect it and are willing to pay the premium price. If you wish to get your book placed on library shelves, you may need a hardcover option because it is more durable. Keep in mind the cover type you choose can affect the trim size, design, and cost of production.
Ebook: Once you have a formatted manuscript, converting it to an eBook file can cost you little to nothing, depending on the software you have access to and the platforms you plan to use to distribute the eBook. Amazon’s KDP and KDP Select are among the most popular digital publishing options, and you can reach readers outside of Amazon through platforms like Smashwords, Lulu, and Draft2Digital. You’ll want to ask your cover designer to provide an eBook cover file as well, which they might do for free.
Audiobook: Creating an audiobook is becoming more affordable with AI narration and self-narration options. Both ACX (Audible) and Findaway Voices offer multiple levels of support and creator options with varying costs and royalty rates. Publishing an audiobook is an excellent way to expand your distribution, reach new readers, improve your online discoverability, and earn additional revenue. As with an eBook, you’ll want to ask your cover designer to provide an audiobook cover file.
Word count and number of pages: The longer the book, the more paper and ink it requires when printing. Word count, typeface, font size, and margins will all affect the total number of pages, so it’s important to work with an experienced interior designer that understands industry standards, while also creating a visually appealing book. A 100,000 word fantasy novel will cost more to print than a 60,000 word memoir, as will a large print version for seniors.
Trim Size: Using the right dimensions or size for your book is just as important as the cover artwork and other elements. Publishers are always looking for the most economical way to print books while also following some trim size and design standards that were set long ago in the industry. Hardcovers tend to range from 6”x9” to 8.5”x11”, while paperbacks range from 5” x 8” to 6” x 9. The larger the book, the more it will cost to print.
Cover Finish: Different cover finishes and spot treatments can affect cost. Most book covers are matte or glossy finish, but there are special treatments such as foil stamping, embossing, debossing, spot UV, and various laminations that can be added for a unique touch. Authors need to weigh the benefits of investing in special treatments that will cost more to print.
Dust Jackets: A dust jacket is a separately printed paper cover that wraps around a hardcover book to protect it and give it a premium look and feel. These are completely optional and are most common in children’s books, fiction book series, and collectable nonfiction books. While these do add cost to the book’s production, having a dust jacket can justify a higher retail price.
Paper Quality: The weight and color of the pages themselves can influence the look, feel, and cost of your book. The paper weights for covers are heavier than the paper weights for interior pages, and the paper weights for interior full-color pages are heavier than the paper weights for interior black and white pages. You’ll want to ensure your printer, whether offset or digital, is using weights that meet industry standards and that make the most sense cost-wise for your book.
Ink: Printing a full-color interior for a book will cost more than printing a black and white interior. Even printing a few pages in full-color and the remaining pages black and white will add to your cost. Most children’s books require a full-color interior to meet reader expectations, as do certain genres of nonfiction books. If your book does not require a full-color interior, carefully consider whether the investment is necessary for your book’s genre and topic.
Printing Process: Printing costs are dependent upon your chosen publishing path. If you traditionally publish, you won’t incur any printing costs; your publisher will cover them. If you publish using one of the other paths, you may have the option of either offset printing or print-on-demand.
Offset Printing: In offset printing, a printing press is used to produce larger quantities of books (1,500+ minimum). This is the highest quality of printing available and the cost per book is lower due to the large print quantity. The downside is that it requires a big, upfront investment ($4,500+).
Print-on-Demand: Print-on-demand (POD) is a form of digital printing where books are printed as ordered. The cost per book will be higher due to printing one at a time, but you won’t have to worry about warehousing a large quantity of books or upfront payments. POD quality has improved greatly over the years, providing platforms like Amazon Kindle Direct Publishing and IngramSpark with a good alternative to bulk printing.
In addition, authors may need to account for warehousing, distribution, and shipping fees, depending on their chosen publishing path, printing method, and distribution channels. When determining your book’s retail price, it’s important to take at least the production and shipping costs into account to ensure you are making a profit on each book sold.
Different genres and demographics have varying price expectations, so you’ll want to have a good understanding of your target audience when setting your retail price. For example, professional and educational nonfiction books are usually priced higher than fiction and children’s books due to their specialized content. And, young adult readers may be more price sensitive than older readers due to budget constraints. If you are a more established author in your genre, you may be able to price your books a little higher than books that are similar from lesser known authors.
One of the best ways to understand a competitive price range for your book is to visit your local bookstore and find the section where your book would be shelved. Review the pricing for books that are roughly the same trim size, number of pages, and genre as your book. You can also search online for books similar to yours to get a good idea of where to start with pricing.
Other Considerations
Your Personal Goals: Understanding your long-term writing and career goals can help guide your pricing decisions. Is your goal to sell as many books as possible, no matter the profit? Or, to make a lot of money on each book sale? Do you have a single book, or do you have a large portfolio of work? You may decide that maximum profit isn't your end goal and your work is more about creating a beautiful keepsake or sharing something about which you're passionate.
Global Pricing: If you plan to sell your book internationally, you’ll need to think about how pricing works in different countries. For example, $9.99 in the U.S. might be a reasonable price, but in a country with a lower average income, that price might be prohibitive. Many distribution channels allow you to set different prices for different regions, so adjusting your price for international markets can help you maximize your reach and sales.
Psychological Factors: Psychological pricing involves setting a price that appeals to readers’ emotional triggers. A common tactic is setting the price just below a round number such as $9.99 instead of $10.00. It gives the impression that the book is more affordable, even though the difference is only one cent. Another tactic is to use tiered pricing for the different formats such as $2.99 for the eBook and $14.99 for the paperback.
Discounts or Promotional Pricing: Discounting is a common strategy for increasing sales, particularly during promotional periods. Offering the book at a lower price for a limited time can help attract readers and create a buzz, while raising the price after a successful launch can help capture more value.
When it comes to setting the retail price for your book, it's important to keep in mind that your book is a product in a crowded marketplace. Price it too high, and you may alienate your target readers. Price it too low, and you may be undervaluing your work, losing money on each sale, or leaving readers wondering why it’s so cheap. If you have control over your pricing, you can experiment with different price points over time to gauge how sales volume and profit are affected.
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