We have a pricing dilemma that we're not sure how to address. We offer both print books and PDF e-books and for 5 or 6 years the print book version and e-book version of each of our books has been the same price (except that print books orders add shipping).
Some readers, but not many, have objected to the e-book version of a book being the same price as the print book.
So far, we are happy with our current pricing model and we don't believe that lowering the e-book regular price would increase sales.
Our dilemma is that we are working on releasing Kindle versions of the same e-books, but Amazon's royalty structure is such that it is more beneficial to us to offer the Kindle versions for less than our regular prices. (Amazon has a $9.99 limit for a 70% Royalty). Kindle sales would cost us significantly less in delivery and customer service costs so our net would be roughly the same.
We are concerned that it might slow sales if customers notice that the "regular" price at the Kindle store is significantly lower than the "regular" price for the PDF on our site. We are concerned that a lower "regular" price at Kindle might lower the perceived value of the books on our site.
We sell significantly more books/e-books when we offer big half price sales in our newsletter and on our site. If we lowered the "regular" prices of the e-books, we don't feel that we could offer half price sales anymore, but the urgency of a limited duration sale is what drives a lot of the sales. We think that if we reduce the price and don't offer sales our frugal living niche would put off buying indefinitely because there's no incentive to buy NOW.
Also, if we were to lower the price, there would be less incentive for affiliates to want to promote. (50% of a lower price is less commission.)
Do you have any experience with this or any thoughts about how to deal with this?