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Amazing actually, as I am getting lots of sales suddenly....so thanks for your promotions,
The up-side of this is that, in a desperate search to find something to read, I'm starting to discover authors I'd never heard of before (I've just finished one such discovery - "Zoo City" by South African author Lauren Beukes - which I though was a good read, and now I've just bought Beukes' previous novel "Moxyland" on the strength of that).
I agree that $.99 can "appear" to bring down the value of a book, but an E-Book priced "temporarily" at that price can also attract a huge audience of readers that otherwise might not give you a chance. My indie publisher StoneGate Ink is able to price certain novels like The Innocent for instance, at $.99 for a limited time much like any other service or product will be reduced for a limited time. In this case it helped land the novel on the Amazon Kindle Top Ten Bestseller List for more than three weeks, and sold more than 60,000 copies in four weeks. It was able to pick up 14 or so 5 start reviews a few 4 stars, some three stars, and a scattering of clunkers. It's also helped my normally priced books like The Remains and Moonlight Falls ($2.99 and $8.95) respectively to improve dramatically in sales. It's also helped the paper sales, The Remains having gone into a second printing. It's the quality of the work that readers will inevitably place value in. Not the price. Years ago, the dime novel proved just as efficient in drawing in new readers.
The trick seems to be, presuming you have a book good enough to benefit from word-of-mouth from readers, to price it low enough to get an initial flood of trial purchases big enough to land your book in the noticeable end of the Amazon rankings, and then, once you are in that visible perch, to raise the price somewhat, to a still almost negligibly cheap rate, but enough to boost the income now that you are a hot commodity. It seems to be some thing like 1.99 on the cheap end and raising to between 3 and 5 dollars once you're up on the Amazon rankings, if what I've been reading is valid.