Ebook MarketView: Tracking a Bestseller Through Price Changes – One Book’s Story

Dan Lubart, Iobyte SolutionsBy Dan Lubart, Principal, Iobyte Solutions, with Anne Kostick

[Ed.: Commenters have noted how hard it can be to get a handle on the current state of ebook sales from the shifting and volatile information available to us. Digital Book World is pleased to offer weekly reports from Dan Lubart’s eBook MarketView, to help us see what stories the actual data has to tell. Using a proprietary market analysis tool, Dan pairs publicly available data from multiple ebook retailer bestseller lists with analysis and visual presentation to help publishers identify and understand emerging patterns.]

Last week, we looked at the price points of Kindle bestsellers since the start of 2011; this week, we narrow the focus to examine one book’s daily ranking to discuss price sensitivity and optimum pricing. Vince Flynn’s American Assassin, published by Simon & Schuster in October 2010, was a Kindle Bestseller by December 8, when this study began, and was offered at $12.99 in the Kindle edition. From that date until January 10, 2011, the book sustained a normal, steady downward trend on the bestseller list, from #22 to #53.

Ebook MarketView Graph, 5/12/11On January 10th, the digital price dropped to $8.99; two days later, American Assassin’s ranking spiked to #33 and held its position above #40 for a week.

On January 17th, the price was raised again, adding another two dollars to the original. Now offered at $14.99, Flynn’s book plummeted during the next five days to rank #78 and resumed its original downward trend until exiting the bestseller list in early February.

Looking at the numbers, you could conclude that the book’s ranking took a beating as a result of the price increase. But the graph shows that this book merely resumed its original trend after a week-long boost generated by the reduced price.

So, should we continue to assume that price and ranking are always linked? Directionally, yes, but there appear to be some indications of where “inflection points” may be – in other words prices where the consumer market is more or less sensitive to small changes in price.

For one, the drop to $8.99 not only raised the title’s ranking, but that ranking remained essentially flat for a week (rather than resume a downward trend from its new position). At this point we must note that price changes may have been only one of many factors, such as breaking media or promotions, ultimately impacting this performance, but this is interesting nonetheless. Perhaps even more interesting is to note that this book’s performance didn’t appear to suffer when its price was eventually raised another $2.00 above the original – and the later drop in rank only restored the title’s original descent curve in the rankings. In other words, the net effect of raising the price from $12.99 to $14.99 did not seem to alter the title’s original “ranking decay” trajectory. (I’ll have more to say about the concept of “ranking decay” in a future article.)

It may be that American Assassin could have been successfully priced at $14.99 from its “on sale” date and traveled the same path through the winter weeks. It may also be that, had it been kept at $8.99, it would have remained on the Kindle bestsellers list far longer than it did, and resulting revenues might have been even greater. I will expand on this concept with a larger set of titles in a future article and welcome any suggestions for such titles.

Dan Lubart is the principal at Iobyte Solutions, an IT strategy firm with a specialty in publishing and entertainment media. Iobyte’s eBook MarketView tool enables publishers, authors, agents and others to study the dynamics of the ebook retail marketplace in various ways. Dan blogs at eBook MarketView.

2 thoughts on “Ebook MarketView: Tracking a Bestseller Through Price Changes – One Book’s Story

  1. Pingback: Increasing eBook sales: Is the Price always Right? « Mark Fadden's Blog

  2. Pingback: Precificação dinâmica: O que é e o que não é « eBook Reader

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