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OK. Thank you.You should probably start out at either $2.99 or $3.99. When you release more of the series, you can drop the first book to $0.99.
I very recently released my book (320 pages) through a publisher as both a POD and an ebook; the cost of the POD was determined by page length, and the required minimum ($17.95) is a bit high, I think, for an unknown author - I certainly wasn't going to price it higher! Since my main priority is to have people read the book, not lose readers over a buck or two, I listed the ebook at its minimum ($2.99), which is about 1/6 the paperback cost, nevermind postage fees.
It is high, I agree - I wanted to sell it around the $12 mark, too. That said, through my publisher's site, I'm making a bit over $6 a book, a bit less if sold through other online bookstores, but more than $1. Createspace only sells on Amazon, right? That limits where else it's available.
I released my book 2 days ago at 2.99 and got a few sales but nothing crazy. The sequel is coming out Tuesday, and it's making me think about dropping the first one to 99 cents. Maybe more people will be inclined to try the series and then pay full price for the follow up.
It might happen and it might not. I've not seen more sales at lower prices, which suggests that if people want it, they don't see a whole lot of difference between $0.99 and $2.99. If the price drop is part of a big promotion campaign, that might make a difference. But as a regular price, what you might see is that you make the same number of sales, but get paid less.