The numbers are in, and they're different from the past. This is from the folks who run promotional giants Freebooksy and Bargain Booksy:
"When you’re planning on running a price promotion, it’s important to pick a primary goal. If you’re looking to get your book into the hands of the greatest number of readers by selling the most copies, $0.99 is by far the best price point to achieve that goal. On average, you will sell over 2 times the number of books at $0.99 than you will at $1.99."
and:
"In Mystery, we see another significant change. In Q1 2016, $2.99 was the best price to optimize for revenue. However, in 2017 we see a shift toward $1.99 and $3.99 as optimal price points for maximizing revenue."
"When you’re planning on running a price promotion, it’s important to pick a primary goal. If you’re looking to get your book into the hands of the greatest number of readers by selling the most copies, $0.99 is by far the best price point to achieve that goal. On average, you will sell over 2 times the number of books at $0.99 than you will at $1.99."
and:
"In Mystery, we see another significant change. In Q1 2016, $2.99 was the best price to optimize for revenue. However, in 2017 we see a shift toward $1.99 and $3.99 as optimal price points for maximizing revenue."
Charts, graphs and more at:
How to Price Your Book for Maximum Results During a Promotion by Written Word Media Blog