How do you set a price for an eBook edition?

What’s the right price, relative to the cover price of the printed edition, or relative to the expectations of the eReader market?

This is something I must resolve for myself: when I publish “Owe Nothing” in eBook format (which I am going to do fairly soon), what is the best price? I’ve seen eBooks on sale for $0.00, $0.99, $2.99, $4.99 and so on.

Aside from resolving this particular quandry, I’m beginning to see that eBooks represent a huge benefit to the author-seller: no shipping costs, no inventory, and no re-ordering from the publisher. Admittedly, the burgeoning growth of eBooks, eReaders  and a new author-based publishing market (compared to some noticeable declines in sales for traditional publishers)  is an exciting prospect.

http://www.secure-ebook.com/blog/post/2006/12/12/3-ebook-pricing

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