Originally Posted by JSWolf
So why not just price it at the final end price and be done with it? The eBook is not going to change it's container.
Prices are not based on how much is cost to create something. They are based on supply and demand. No eBook blows out the supply issue because there is no cost to produce a copy. As many as are wanted can be made/sold.
That leaves demand. Most people that want to buy it will buy it soon after it comes out. After that less and less people will want it.
So, when the book is first released, have a HC like price. $19.99 maybe. Then after a while, maybe 6 months, drop the price. As the demand goes down drop the price. So, maybe after it has been out for 1 year it's $4.99... it will keep going down if need to keep sales going. What good is a $5 price if no one buys it. If people will buy it at $3 that's better. Remember, this is an ebook... there is no duplication cost (other than basic infrascture). Heck a 1TB hard drive will have hundreds of thousands of titles.