Fascinating discussion of eBook pricing:
Here’s the gist of the pricing issue as I understand it. Amazon pays you a royalty of 70% on all Kindle titles priced between $2.99 and $9.99. For e-books priced below $2.99 and above $9.99, Amazon pays a royalty of 35%.
That means, the least you can price your book to get the 70% royalty is $2.99, which will yield you a net royalty of $2.09 per sale. If you opt to price your book at $0.99, then you’ll get 35 cents per sale. In order to get $2.09 in royalties with a book priced at $0.99, you’ll have to sell 6 books.
via How Much Should You Price Your E-Book? | Book Marketing Strategies and Tips For Authors.