Createspace’s Minimum List Price Calculation – 8/14/2013

Within limits, the author can set the book’s price, know as the  Author’s List Price. CreateSpace (CS) establishes a minimum list price. Minimum list price = CS fixed charge plus a charge per page, Amazon charge, and Expanded Distribution charge.  Author’s list price must exceed this level.

Royalties are computed as follows:

Author’s List Price

Minus CS Fixed charge

Minus CS charge per page

= CreateSpace eStore royalty

Minus Amazon Store Charge (20% of Author List Price)

=Amazon royalty

Minus Expanded Distribution (20% of Author List price)

=Expanded Distribution Royalty

  • Expanded Distribution is an option for shipments from Amazon to schools, libraries etc at a one-time fee of $25. If I had chose this option for my book The O’Donnells of Philadelphia, which exceeds 600 pages, it would have driven the minimum list price above $20/per book before I’d receive any royalty. I chose not to take this option for that book.
    • I accepted this option for three other books because I expect Amazon to notify schools, libraries etc. of their availability. I expect to drop this option sometime in the future to lower my book prices.
    • I have a different strategy in mind to replace Expanded Distribution, which I will share if it proves to be successful.

Now you ask, given all that, “How do I determine what to charge (Author List Price.) I knew you’d get to that.

CS makes it easy to play “what if” games with prices to calculate the potential royalties.

After your book is accepted, you set an Author List Price. Hit the calculate button and CS displays royalties for their eStore, Amazon, Expanded Distribution, books printed in the UK and books printed in Continental Europe.

lIf you are not content with the royalties, resubmit a different Author List Price and recalculate. You can do this again and again until you’re content with the price and royalty. You can also add or delete the Expanded Distribution option.

Prices can be changed at any time.

Books for the author’s use and purpose can be purchased directly from CS at CS’s cost which doesn’t include either Amazon’s or Expanded Distribution’s add-ons, nor any royalty. You can also direct CS to ship these books to other locations and charge you for the book cost, sales tax, and shipping charges.

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