Step 3 in Developing a Marketing Plan, How To Price The Novel

Pricing the Novel

The price of the novel is very important. The price should be enough to allow a profit but not too much to scare the customer away. Pricing must be competitive with other novels that are similar. Examples could be ebooks versus print books. If the type of the novel is new and there are a lot of the same novels on the market then the pricing may want to be a little lower to stand out but still make a profit. In the marketing plan there should be a maximum price for the novel and a minimum price that allows all costs into the novel price with a profit margin.

Determining the Price

Gather all the costs to make the novel such as, costs to ship the novel, tax on the novel, any supplies needed to make the novel, the costs to market the novel. Anything that costs money should be broken down into the price of each novel. The benefit to the customer while not easy to do in dollars and cents can also be added to the cost of the novel. How are all these costs figured? Through market research of similar novels, the price of other novels and the benefit to the customer can be figured.

Pricing Strategy

Pricing the novel and determining the price answers questions in the marketing plan. Basically, what is the price of the novel?
What is the price of the competitor's novel?
How much must be charged to make a profit?
What kind of profit is expected?
How many novels need to sell before a profit can be made?
Now that the Pricing part of the marketing plan is finished, move on to the distribution of the product.

Exercise

Make a list of all the questions and answers on pricing and develop a price for the novel.