The first four books I released on my own were priced at $.99 which I think is appropriate since they are short stories and short novellas. The fifth book I released by myself is much longer than the first four. At least double. So I decided to try out some new pricing.
Since I wanted the book to be $2.99 with an early buyers discount I set the original price at $1.99. A happy middle ground. Or so I thought.

What I’ve learned is that $1.99 is a wasteland. You don’t get the advantages of the $.99 insta-buy. And you don’t get the 70% royalty rate of a $2.99 book. You’re stuck in the middle, not selling as many copies and not making the bigger money either.
So what do I plan to do about it? I have a new book coming out tomorrow, the long awaited Mated to a Cajun Werewolf. I plan to offer it and all my other releases at $.99 for the weekend as a Tax-Break sale. Then Seduced and Mated will be moved up to the $2.99 price point. I’ll be interested to see where sales go from there.
But from now on I plan on sticking to $.99 or $2.99+ for my releases as I can see no good reason at this point to offer anything in between those two key price points.
Let’s look at the numbers.
Comparing The Cajun’s Captive($.99) with Seduced by a Cajun Werewolf($1.99) on the Nook. (Kindle and Smashwords numbers are not included here.)
First 8 days on sale:
TCC – 800 copies
SBACW – 643 copies
At first glance the numbers look good. And I’m making more money per copy of SBACW than TCC. Now something to note. On the 8th day TCC sold 484 copies on the Nook. SBACW sold 114 on the 8th day. To date the highest SBACW has sold in a single day is 156.
First 16 days
TCC – 3020
SBACW – 1441
More math.
3020 * $.99 = $2989.80 (40% royalty rate of that = $1195.92)
1441 * $1.99 = $2867.59 (40% royalty rate of that = $1147.04)
So not only have I lost potential readers, I’ve lost roughly $50.
Let’s try a projection. $2.99 for SBACW. Assume that my sales reduce by half, again.
700 * $2.99 = $2093 (65% royalty rate = $1360.45)
Now someone check my math but it appears that at the reduced purchase rate (a projection of course – it could be higher or lower, who knows) I would still make me more money.