Price: The final decision is yours. Too high, and you might not get very many sales. Too low and you might look "too cheap". Customers will often want e-books because they can save money, so don't get carried away. If you want to charge hard-back prices, you'd better deliver a physical hard-back book. We don't print physical books.
For a 125,000 word work of fiction, we suggest $4.95 (USD). If you've created a huge blockbuster, you might want to price it a bit higher and if your book is kinda thin, you might want to knock off a buck or two. Our suggested prices are in line with eBook industry practices.