How does the RRP of my book affect my royalties?

If you’re a self-published author struggling to properly price your book’s RRP, you’re not alone. Your book’s price directly impacts how well your book will sell and how much you make for each of your sales, so it’s important to get it right.

Price your book too low and you might struggle to earn what your time and hard work is due. Price it too high, however, and potential readers are likely to forgo your book for a cheaper option. Finding the right balance is crucial, but there are some factors that will help you figure things out.

 Estimated reading time: 6 minutes

1. What is an RRP?

RRP stands for Recommended Retail Price. It’s the price you suggest that retailers, both global online shops and local bookstores, use when selling your book.

A number of things impact what your RRP should be set at. We’ve named a few below:
• Distribution channels
• Print costs
• Print quality
• Genre/audience standards

To price your book effectively, it’s a good idea to understand your distribution model and research similar books in your genre and target audience.

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2. Why your RRP matters

The RRP of your book is more than just a number—it plays a key role in attracting readers and boosting your book sales. A well-planned RRP helps you connect with your target audience and increase your earnings as an author, so it’s important to put some consideration into it.

The RRP, however, isn’t the be-all end-all for retailers when pricing your book. It’s an indication of the price they should set, but it isn’t a hard-and-fast rule. Retailers can set your book price at whatever they like—without consultation from the author.

While this is true, the RRP is still a retailer’s first indication of what your book is “worth”. If they don’t believe that they can sell the book at that price and return a just profit for themselves, they may not stock your book at all.

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3. How do I set an appropriate RRP for my book?

3.1 How are you distributing your book?

Distribution plays a key role in determining your Recommended Retail Price (RRP) since costs vary greatly depending on the method. Understanding distribution costs is essential to setting competitive RRPs and maximising profit margins.

3.1.1 Print-On-Demand (POD) Services

Print-on-Demand (POD) platforms like Amazon KDP and IngramSpark simplify self-publishing by printing books as orders come in, eliminating the need to stock books in a warehouse, shed, or your back room. Using POD also means that you don’t have to fork-out the upfront cost of bulk print, which is a gamechanger for indie authors.

However, POD convenience does come with a different kind of price tag: they take a cut from your royalties.

• Amazon KDP royalty calculation: Amazon KDP takes 40% of your book’s retail price (RRP) for distribution and retailing through Amazon, leaving you with 60% royalties after print cost is subtracted. This means that if your book is costed at $24.99, you could receive around $7.70 in royalties.
• IngramSpark royalty calculation: IngramSpark, as they’re not a retailer themselves, offers lower royalties as the retailer must also take a cut. You can lose 50–55% of your RRP for wholesale discounts, plus printing fees. This means that if your book is costed at the same $24.99, you could receive as little as $ 2.11 in royalties.

When you set your book’s RRP for POD, ensure it covers both printing and distribution costs while leaving room for profit. Both Amazon KDP and IngramSpark have calculators that you can use either to estimate (before setting up your title on their platforms) or finalise (once you’ve uploaded your final files) your RRP to ensure your royalties are looking good.

3.1.2 Self-selling

If you’re self-publishing and selling books yourself (either through your dedicated author website, at local events, or through your author social media accounts), you cut the retailer out and can make more royalties from each sale.

A good rule of thumb is to set your recommended retail price (RRP) at three times the per-unit cost of your print order. This approach covers production costs, allows for discounts when needed, and ensures you earn a solid profit.

For example, if printing each book costs you $5 per copy (unit), setting your RRP at $15 is a good starting point. Then, you should consider what other books in your audience and genre are and see if you can match-up to their pricing.

3.2 Research and align to your market competition

When thinking about pricing your book, the main market factors to focus on are the genre, format, and target audience. Readers usually have a price point that they’re willing to pay depending on their chosen genre and format, so it’s a good idea to know where your book will stand. Here’s a quick guide:

• Paperback vs hardcover: Paperback books are always cheaper than their hardcover counterpart. Readers usually expect hardcovers to be up to $10–$15 more expensive than a paperback.
• Non-fiction or niche genres vs general fiction: Non-fiction and niche genres often have higher prices due to specialised content or less competition.
• Physical books vs digital books: Digital books (eBooks and audiobooks) are generally much cheaper than physical books. Their prices range from $2.99 to $9.99, and some are even free (usually with marketing strategies like Kindle Select).

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4. Things to keep in mind when setting your RRP

4.1 Don’t set your RRP too low

Many authors assume a low RRP will attract more buyers, but if it doesn’t cover production costs, you risk earning zero royalties—or worse, losing money.

To maximise your royalties and avoid losing money, carefully calculate costs before distribution and set your RRP to guarantee profit. Don’t let all your hard work as an author lead to financial loss.

4.2 Don’t price yourself out of the market

While setting your RRP too low can be damaging, raising it too high can be just as bad. Some readers will happily spend $30 or more books, but this doesn’t suit everyone. Most book buyers want affordable options and will often opt for a cheaper book over yours regardless of which is considered better.

When pricing your book, consider the following:

• Who is your target audience? Are you selling to casual readers who prefer budget-friendly books, or collectors who will pay extra for the content they enjoy?
• What makes your book unique? If your book stands out with premium features—like stunning photography or exclusive content—a higher price could be justified.

By understanding your audience and highlighting the realistic value of your book, you can set a competitive price and attract more readers, helping to boost your sales and profitability.

4.3 Factor in the format

When pricing your book, consider how different formats impact costs and set your RRP to reflect this. Here’s a quick guide to book pricing:

• Paperback books: Paperbacks are usually seen as a popular, budget-friendly option for readers who still like a physical book. These are typically priced anywhere between $12.99 and $24.99 at most bookstores.
• Hardcover books: Hardcovers are the premium choice for collectors and book lovers that favour this particular aesthetic. Because of this, they’re often priced higher at $30 to over $50 depending on genre and content.
• eBooks: eBooks are typically the most cost-effective digital option and are usually priced anywhere between $0 and $9.99.
• Audiobooks: Audiobooks, while digital, still require higher production costs, This means that prices often range from $7–$20, depending on length.

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