There are a couple of reasons. First and foremost has to do with gaining new readership and also loyalty to the current readers. Many readers who have not heard of a book, or an author, may be more inclined to spend .99 on a book than 2.99 and up. I could be wrong in that theory, and not all readers care. However, let's face it, many of us don't have extra spending cash these days, making that .99 price tag more appealing.
The Big 6 price their e-books at 6.99 and up. I know because six of my books are still owned by a Big 6 publisher and are priced at 6.99 to 7.99. (GIVE ME BACK MY RIGHTS--ugh...as you know, whole 'nother story).
I have to admit that I don't like deep discounting. Writers work hard and it can be a difficult pill to swallow when you know what you have written is worth more than a buck. Other writers don't really like it because it raises the bar to compete with. However, it is business and sometimes it is good business. Every store in the world has an occasional sale. It gets things moving, and at times, we discover something new and cool that we may have not tried before.
So, I hope that if you have not read any of my A.K. Alexander books that you will take a .99 cent risk and give one a try--And, spread the word. The best way for books to get out there still is by word of mouth.
I'd love to hear your opinion on pricing Indie books.
Thank You! Have a wonderful weekend!