JA Konrath did an experiment last year in which he temporarily lowered the price of his books from $2.99 to $0.99 to see if he would make up in greater volume what he lost in the lowered price. He found that he made less money pricing his book at 0.99. than he did when he priced it at $2.99.
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The belief that you ALWAYS make up in greater volume what you lose in price when you price a book lower is a popular myth round these parts. Reality says different.
You may disagree with the way publishers price ebooks (heck, I disagree- many times). But they are actually looking at data, not cherry picked anecdotes and hopeful suppositions. My hope is that they will get better and more flexible over time at pricing. Ofcourse theyre is no way they will ever plese everyone. But they can do better.