In your Sales Reports, the Sale Price column will show you books that were purchased with a BOGO promotional discount off the original List Price. There will be separate rows totaling the number of sales per title purchased at a given Sale Price, e.g., 2 sales at $5.99 and 1 sale at 2.99. This view is available via the View Report option under Sales Reports.
Here is an example of how the BOGO calculation works:
Example: Buy One, Get One FREE
• Book 1 of the BOGO is priced at $5.99
• Book 2 of the BOGO is priced at $4.99
• Customer buys Book 1 at $5.99, gets Book 2 for Free.
• Before BOGO discount, the Customer’s Order Total would be = $10.98
• After the BOGO is applied, the Order Total is discounted by $4.99, making the new discounted total $5.99, or 45% off the original order total.
To understand how much an Author earns from each title, you have to calculate the discount percentage (%) applied to each title in the order.
Here’s the formula:
X% off each BOGO title = Total Discount in $ / Original Order Total in $
Ex: Total Discount of $4.99 (Book 2 that was FREE for the customer) / Original Order Total of $10.98 = 45% off
Royalties Earned:
Book 1: $5.99 x 45% off discount = $2.70 off original price. Thus, $5.99 - $2.72 off = $3.29, the effective promo price of Book 1.
Author earns $3.29 x 70% royalty rate = $2.30
Book 2: $4.99 x 45% off discount = $2.25 off original price. Thus, $4.99 – $2.25 off = $2.74, the effective promo price of Book 2.
Author earns $2.74 x 70% royalty rate = $1.92.