people will often judge the quality of your book, at least partially, on the price of your book. You can even see the impact of the Veblen goods effect in the book pricing data. The fact that there is no sales difference between $7.99 and $9.99 tells you that within certain price bands, the price actu- ally does not have an impact on demand. The data pretty clearly show that there are four price ranges: EBOOKS High Price $7.99-$9.99 Normal $4.99-$6.99 Cheap $2.99-$3.99 Dirt Cheap $0.99-$1.99 Why does this matter? Because for many authors, pricing a book too low will hurt your credibility with your readers. This is how it works with many luxury goods. People assume you are worth what you ask, so if you ask a low price, they assume that is what you are worth. [By the way, remember that most of our authors are not primarily focusing on making money through book sales, but rather using the book to make money other ways.] Given these two factors, for most authors, there are really three prices to choose from (at least for long-term pricing, not counting any promotions you do): • If you want to maximize units sold: $3.99 (or possibly $0.99 in some rare cases) hOW TO PrOPErly PriCE yOUr BOOk · 307