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I think $6.99 is too much, though not egregiously so - but for most things $4.99 is fine because I figure if it's worth buying at all, it's probably worth five bucks. I'd want to lower that for a big series (or maybe offer bundles) just because you're not going to sell all the books at anything over two or three dollars each.
It's the nine or ten dollar ones that drive me nuts. I'm not paying close to ten bucks to replace a book I bought new in paperback twenty years ago for about half that - especially when I can find it in the used bookstore for about three or four bucks (or a penny on Amazon plus $3.99 shipping). That's a bigger rip-off than $13 for something that's still in hardcover.
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