Five is the New Ten
About ten years ago, when I was working in downtown Miami for two different software companies, I had to research price points for books. Both companies were trying to release books that were informative and yet within the customer`s reach financially and socially. Back then, and this is 2005, that price was ten dollars (US). So, strategically, authors and businesses would price books and CDs and media products at $9.99 or $9.95 to ensure the sale.
Today, we are in 2015. This is a ten year passage of time, experience, market change, and market evolution, to say the least. I have researched the web far and wide as an author myself. The new price point for the same product today has changed drastically. This is because there is a plentitude of free media out there - books, ebooks, mp3 files, mp4 files, and more.
However, there are still books that are new and where the author really can sell his or her product because the information is so good and so far above the freebies that smart individuals in the market will willingly pay to get the book. This new price point - today - is five dollars, just half of what people willingly paid without a wink ten years ago.
Again, I have researched the web far and wide and also used Google Consumer Surveys to get this information. With that said, all my books at Amazon.com and Apple iTunes are well under five dollars. Some books are free and some are just $1.99. So, in short, the way that entrepreneurs can get into the ball game is this: do your research.
Find the true market value of your product and do not challenge the customer`s barrier. You need to lower the cost of production so that you can still make a small profit as the customer buys your good for a fair price, in his or her eyes. Cheers.