Information on Accessing New Territories for eBook publishers. Section on: *Pricing *Pricing & Growth Per Territory *Maximizing Sales Impact on Volumes & Revenues *eBook Analytics – Analytical Performance Data *International Buying Behavior

1. Emerging Markets: Growing Profitable Sales in New Territories
27 March 2013

2. Ten years marketing experience in the
publishing industry and recently completed his
Masters in Marketing.
A proven track record of achievement in the
areas of Digital Marketing, Business
Development and Strategic Planning.
Contact Patrick: pcrowley@epubdirect.com
Patrick Crowley
Digital Marketing Manager

3. 1. A little bit about us
2. Accessing New Territories
3. Pricing
4. Pricing & Growth Per Territory
5. Maximising Sales Impact on Volumes & Revenues
6. eBook Analytics – Analytical Performance Data
7. International Buying Behaviour
Agenda
http://www.slideshare.net/PublishersLaunch/kelly-gallagher-ebooks-go-global

4. • An Irish company that provides a distribution management system for publishers to get their
eBooks to market.
• We have the widest market reach with over 1,000 retail channels and 25,000 library
channels, all under one simplified contract.
• Sales channels in 60 countries, 50+ languages. Sales reported from 112 countries YTD.
• Our unique selling points put us at a distinct advantage over our competition in terms of cost
savings to clients:
• Digital Distribution specialist service offering
• Maximum exposure to retail outlets and library channels
• The most flexible and powerful software platform
• All managed through a culture of collaboration and partnership. Our success depends on
our publisher’s success.
Who are ePubDirect

5. Publishers RetailersChallenge
• Access to multiple
channels
• Sales reporting
• File storage
• Conversion
• Marketing
• Resources
• Margins
Simplicity in a World of Complexity

6. How it Works

7. Accessing New Territories

10. eBook Purchase Sources

11. International Reach – 112 Countries
United States of America United Kingdom Ireland Australia Canada France Italy
Spain South Africa Netherlands New Zealand Germany Singapore Norway Belgium
Switzerland Mexico Denmark India Japan Austria Brazil Hong Kong Finland
Sweden Thailand Portugal Malta Romania Philippines Poland Greece Qatar Czech
Republic Taiwan Israel Chile Luxembourg Russia Cyprus Iceland Argentina
Venezuela Trinidad and Tobago Slovenia United Arab Emirates Croatia Korea
Northern Mariana Islands Indonesia Namibia Jersey Bermuda Ukraine Ethiopia
Grenada Botswana Latvia Bulgaria Cameroon Peru Nigeria Vietnam Bosnia and
Herzegovina Guatemala Hungary Puerto Rico Samoa Isle of Man Zimbabwe
Brunei/Borneo Falkland Islands Kenya Estonia Lithuania Monaco Guernsey
Swaziland Cayman Islands Bahamas Jamaica Saudi Arabia Antigua & Barbuda
Armenia Barbados Cambodia Colombia Congo Dominica Dominican Republic
Ecuador Ghana Guyana Haiti Malawi Montserrat Myanmar Nepal Netherlands
Antilles New Caledonia Palau Panama Saint Kitts and Nevis Saint Lucia Serbia Sri
Lanka Tanzania Turks and Caicos Islands Uganda Uruguay Virgin Islands Western
Sahara

13. 30%
28%
10%
7%
4%
21%
0%
5%
10%
15%
20%
25%
30%
35%
USA UK Ireland Australia Canada Other
% Value
Territory % Value

14. 0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
US IE GB CA AU MY SG NZ FI IN ZA PH BM TR
Global Libraries – 2012

15. Pricing
• Most publishers have difficulty with their pricing policies, because they
don’t have any (don’t tell anyone!)
• Lack of a pro-active pricing policy results in crucial changes in volume
and value in each territory, which can have a huge affect on MARGIN
• One of the biggest challenges is that eBook buyers tend to
understand the competitive landscape better than publishers
• Another major challenge is Amazon’s disputed ‘dominant position’ in
the market. Harder to replace lost print sales.
• Compounding the problem is the fact that many publishers tend to
shoot very low to get high volumes, without a full understanding of the
margin consequences
This race to the bottom makes life harder for everyone

16. Pricing: Expectation and Behaviour
Publishers
Expectations
Publishers
Pricing
Behaviour
Buyers
Expectations
Buyers
Purchasing
Behaviour

17. Setting the Price: A Trade Off
• Price Optimization is a complex process that involves 2
distinct components
1) Publisher’s existing price and cost structures
2) Customers Behaviour
• If I decrease my price, how much volume do I need to
gain to improve my profitability
• If I increase my price, how much volume can I afford
to lose, before reducing my profitability

18. Relationship between
Price and Sales
Price €
Sales Volume
€10
€0
25 75 100

19. Pricing: UK & US
BISAC US UK
Fiction : General (FIC000000) $5.54 $4.51
Bus & Economics : General (BUS000000) $10.77 $6.23
History: General (HIS000000) $8.85 $5.82
Juv Non-Fiction: General (JNF000000) $6.87 $4.87
Biog & Autobiog : General (BIO000000) $10.24 $3.59
Religon: General (REL000000) $8.36 $3.72
Self-Help: General (SEL000000) $10.72 $8.53
Sports & Rec : General (SPO000000) $11.14 $7.47
Political Science: General (POL000000) $12.90 $6.82
Total Average $9.49 $5.73

20. Pricing: UK vs US
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
History: General Biog & Autobiog : General Religon: General
$8.85
$10.24
$8.36
$5.82
$3.59 $3.72
Amz.com ASP
Amz.co.uk ASP
34% 64% 55%

21. •Elastic = many substitutes
•Inelastic = few substitutes
Amazon.com No titles in category
Fiction 598,000
Romance 99,000
Nonfiction 915,000
Biographies & Memoirs 63,000
Business & Investing 95,000
History 112,000
Politics & Current Events 103,000
Religion & Spirituality 156,000

22. "The important thing is not to stop questioning."
Albert Einstein

23. Innovative eBook Analytics Suite
 Graphical views on eBook performance
 Detailedinsight through title level
dashboards
 Self-service accessto key
measures/reports
 Accurate, timely business
intelligence
 GraphicalKPIs
 Detailed:title/retailer reporting,
YTD/month

24. ePubDirect
Analytics
Optimise
Measure
Report
Analyse
BISAC US UK
Fiction $5.54 $4.51
Bus & Economics $10.77 $6.23
Biog & Autobiog $10.24 $3.59

25. Price vs. Sales vs. Margin
Price €
Sales Volume
€10
€0
25 75 100

26. http://www.slideshare.net/PublishersLaunch/kelly-gallagher-ebooks-go-global

27. Super Powers
India
1,210,193,422
UK
63,181,755
While only 2% of Indian population has purchased an eBook – that
number is > UK with 17% penetration

28. http://www.slideshare.net/PublishersLaunch/kelly-gallagher-ebooks-go-global

29. http://www.slideshare.net/PublishersLaunch/kelly-gallagher-ebooks-go-global

30. Free as a Driver in Emerging Markets

31. Do’s and Don’ts
1: Broaden your sales mix and
decrease your risk by ensuring your
titles are available to all territories by
working with all retailer and library
channels
2: Maximise your margin by
establishing an eBook pricing policy –
implement this by territory, start with
the biggies
3: Test your pricing – see what works
(easy in digital!)
4: Make informed decisions utilising
Analytics, review regularly
1: Wait. And watch the biggest get
bigger then decide to do something
(learning curve)
2: Base your eBook pricing strategy
on the legacy model for print – they
are different
3: Race to the bottom on price
4: Go it alone – lean on us!

32. Thank You & Questions
pcrowley@epubdirect.com
ePubDirect Events:
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15 April LBF, X555 @ Digital Zone
24 April Supply Chain Visibility
13 May Bookseller Awards
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