Do you price your ebook to make the most per unit sale by setting a high price (and have fewer sales) or do you set a low price and make more total profit by increasing your volume of sales? Is there a happy medium in pricing allowing for both maximum profit per unit sale and driving an increase in the volume sales at the same time?
Experimenting with pricing is a bit scary, time consuming and requires the collection of data to determine what works best.
Smashwords has done a lot of the data collection and has released a study filled with information that self-publishing authors should find helpful in their decision making process concerning the pricing of their ebooks.
The link below will take you to the study. It is worth the time and effort to read the article.