Quote:
Originally Posted by MikeB1972
Obviously you sell it at 2.99 then, when you have run out of people who will pay that, you drop the price to .99 
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"Traditionally", Indies have been most successful doing it the other way: launching at $0.99 to build up ranking visibility and then going to $2.99. When sales drop below a given threshold, they go to $0.99 for a week or so to rebuild ranking visibility. (Where traditionally means "until last year". Because 2015 isn't 2014 any more than it is 2010. The digital disruption is still far from played out.)
The way the evidence is stacking up, however, there is even more money in putting the title in KU and setting the sale price at $3.99. ($0.99 pricing is increasingly "so last year..."

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One thing to remember is that it makes a difference who the publisher is when it comes to subscription sevices. A payout level that is perfectly fine for author/publishers (AKA Indies) or small tradpubs in the Carolinas or Michigan will be totally unacceptable to a BPH with seven Vice presidents per imprint and Manhattan glass tower rents.
Justifying high prices over an unwillingness to address non-value add overhead isn't going to resonate with buyers who only care about their costs. I.e., those not employed by publishers.