Originally Posted by xendula
Wouldn't it make more sense to have a low intro price and raise it after the book makes the list? That's how many self-publishing authors operate: give the book away for free, generate great revies, then raise the price. Hmmm. I will never get publishers.
Pricing doesn't have to do with logical thinking, but with experimentation to see what patterns give the most medium to long-term revenue.
However, since it's fun to pretend otherwise:
I'm thinking that there are a bunch of buyers who want to get new books by their favorite writers right away. Those impatient buyers should be gouged right after the book is released.*
There's another group of buyers who follow crowds. Those buyers should be influenced to buy by offering somewhat lower prices during the period when the book can be driven to be number one on best-seller lists.
Then there are the patient buyers who will wait for years until prices go way down. Eventually you want to get their few dollars as well, but you shouldn't cater to them until everyone who is remotely impatient has already been sold.
* But even these buyers have limits, so you can't, say, charge $1,000. If you tried to, you would risk delaying their purchases until they read professional reviews, in which case they might never buy the book.