I’ve read a number of articles and blog posts about how much to charge for an eBook. Most of these articles suggest setting the price between 1.99 to 3.99 and I would have to agree, though I think the 2.99-3.99 range is most appropriate for most self-published authors.
Of course, no one wants to sell their book too low and face the stigma that the reason the price is too low is because the book is not good enough. And of course on the other end, selling the book at a higher price means that you deserve to make as much as you can for all the hard work you put into your literary achievement.
When I wrote my first novel, War Remains, A Korean War Novel, I set the price at 5.99. I thought that was a fair price for all the work, energy, and time, I put into writing it. However, sales were dismal despite everyone who bought it telling me that it was a good book. When I lowered the price to .99 cents for a promotional campaign, suddenly my sales rocketed and continue to do quite well, when I decided to sell the book at 3.99.
I do believe that more people will buy a book for a lower price and take a chance with an unknown author than spending over 5.00 for a book with an author they are not too familiar with.
Now I set the price for all my books at 3.99 and sales have been quite good. I’ve also experienced a halo effect. Whenever I sell any of my books for .99 cents, days and in the case of When A Hard Rain Falls, two months after the book promotion, I continue to sell a couple of books a day.
Although selling your book at .99 cents means a profit of .35 cents per book, I believe the exposure the book outweighs the profits made. However, because of this halo effect, I do make up the difference immediately.