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Introduction | Fees | Pricing |Publication Structure | Terms and Conditions | Order Form
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How to calculate your percentage and the publication sale price
All clients take 70% of the base price proceeds of all sales of their publications.
The base price is used to determine the 70% royalties due to you.
The retail price is the total amount that customers pay for a publication. It includes Value Added Tax (VAT).
The retail price is higher than the base price by a certain amount. This amount, the difference between the base price and the retail price, takes into account the various costs, direct and overhead, and VAT tax (currently 22%) that we incur in undertaking the transaction.
The difference between the retail price and the base price may change and is largely outside our control but we shall endeavour to maintain its current value.
The formula for
calculating retail price from the base price is :
Retail Price = Base Price * 1.8
Deciding the optimum selling price for your publication can be difficult. If the price is too high fewer people will be prepared to purchase it. If you'd like us to help you decide the optimum selling price please let us know on your proposal form.
Example Pricing
Example 1
All prices are in US$. The client - a freelance materials writer - wishes to sell a course that she has developed in the wordskills webstore. She has decided that the retail price should be in the 10$ - $20 range, given such factors as how much customers might be prepared to pay for the course, its value or worth, how much of the proceeds of the sale that she wishes to retain, and how many copies she might expect to sell.
The seller decides that the base price should be $10 per copy sold (standard edition). This will give her a surplus of $7 (70% of $10.00) per copy.
The retail price is then calculated as follows :
The breakdown of this transaction is shown in the following table:
| Retail
Price |
$18.00 |
|
| Base Price | $10.00 |
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Example 2
The same client's publication has an institutional edition. She believes that this edition should be priced in the $70 to $100 range since it confers the right of the purchaser to reproduce unlimited copies for entire classes of students at an institution.
However, a base price of $70 would mean a retail price of $126 (including VAT) and she feels that this might be too high for potential purchasers. She believes that a more realistic base price is $45 as the corresponding retail price of $81 (incl. VAT) might be more attractive to institutional and company purchasers. The result is shown in the table below.
| Retail Price | $81.00 |
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| Base Price | $45.00 |
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Introduction | Fees | Pricing | Publication Structure | Terms and Conditions | Order Form
Wordskills Publisher Program | Wordskills Main Page | Webstore