The first problem: literary indie work is a tiny subset of the literary ‘genre,’ (as the Author Earnings report characterizes it), and that is the smallest of genres. Here is the link to the AE graph for genres, from the June 2016 report.
The second problem: the literary category is dominated by big publishers (who have fought hard to maintain the principle that they vet authors, and the work they publish is worth publishing), and who price their ebooks in the higher ranges. The combination big 5 + small/medium publishers includes most of the bestseller sales. Here is the link to the AE graph for Kindle Bestsellers by price range from January 2016.
I’m concluding that buyers of literary fiction are used to paying $7 to $15 for their ebooks. And Amazon imprints are priced below that (and are doing extremely well – their books have a hugely disproportionate share of earnings in the price range they have chosen, peaking at around $6.99).
And therefore, pricing a literary ebook at $8.99 is a way of both staying in the Amazon 70% royalty range (2.99-9.99) and NOT raising a red flag of ‘cheap’ with literary readers (unless that is clearly a sale price).
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