Originally Posted by Kali Yuga
I'm not disputing the general claim that a lower price will sell more copies. I'm merely expressing skepticism that she'll sell 5x more based on lowering the price.
And I am not arguing that she will sell 5x more copies. What will be accomplished, though, is to estimate a total number of customers who are ready to pay (anything) for her book. $2 is symbolic, it is definitely bellow anybody's threshold, but still weeds out freeloaders. Better starting point than "wet finger in the air" method.
Like wallcraft, I believe that there is a threshold bellow which nobody cares and it is, very likely, somewhere in vicinity of $5 dollars. The function is not linear, but what can one do to find out what the optimal value is, except to try lowering the price? Besides, the promotional values of (almost) freebie are still there, and for an unknown author, the enemy is obscurity, not a loss of imaginary sales.
Barcey, those are very nice charts, thanks. Have some karma.