Quote:
Originally Posted by kane
There also seems to be a magic number for what people will pay for certain books. I was reading an article a little while back where someone selling short stories on Amazon said that if they priced them at .99 cents they got good sales. If they raised the price to $1.49 the sales went down a tiny amount, but the extra money more than made up for it. However, when he put the price at $1.99 the sales dropped dramatically so he went back to the slightly lower price.
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Don't ask about those formulas. But if you know the price elasticity, you can calculate the optimum price what brings the most profit.
Price elasticity of demand - Wikipedia, the free encyclopedia