I have also seen some indie authors set their price at $4.99, $6.99 etc. What gives? I will NEVER pay that price for an unknown indie author.
Okay you don’t want to drop below $2.99 because of that 75% commission; we’ll get into that in a minute.
But I am not suggesting setting the price at .99 cents. Let’s think about this as human’s reason on appeared value.
When you run a free promotion, buyers are fully aware that is a sale, likewise with a countdown or .99 cent limited timed sale. Buyers know their time is limited. So this article is focusing on a fixed price.
A fixed price of .99 cents can give the impression that the author may not value his own work (there are many others who suggest the .99 cents but I believe it is counterproductive). Also a fixed price of .99 cents screams ‘cheap’. It will also be reflected in the feedback. It’s just how people sees something below the $1 mark.
Now $1.99, that is below the well-known authors and above the ‘cheap’ listing, it’s under the $2 mark meaning affordable and it’s in the ‘I think it’s worth a try range’. I have sold more books at $1.99 then at any other price point.
Now at $1.99 you will only make 35% commission that seems stupid when I can make 75% at $2.99. Well consider, you fix your price at $2.99 and you sell 10 books a month. Great! I set mine at $1.99 and I sell 200 books in the same time period. Who made more money? Its volume you’re after, if you sell more books at the fixed price of $1.99 then at $2.99 which is the logical price point?