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Yeah, you really have to watch that no one sells your book for less than $2.99 or Amazon will match that price AND reduce your royalty from 70% to 35%!
Before Smashwords went to agency pricing, I saw Kobobooks reduce Risen from $2.99 to $2.39, so Amazon reduced its price and lowered my royalty. So then I had to list it at $3.75 at Smashwords so that the discounted price would be at least $2.99, which was silly.
Now the price is $2.99 across the board and it all makes sense.
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