There is a lot of debate going on about having .99 as an ebook price. The main concern is that at this price, .99 devalues a book. Some critics say that the hard work placed in a book should reflect in the price. This low price even depresses some authors. (see article below)
An author may feel they are just whoring themselves out by having such a low price for a book. But there are people making a lot of money by having cheaply priced books. (Theresa Ragan - Sales Update: Five Months Later...)
Create a price strategy for your books. Have a couple books priced at .99 and others at 2.99. You will have a better shot of making more sales if you are an unknown author by having a lower price.
Observe the trends and follow your instinct. Don't be afraid to experiment with the price but remember to have long term goals. The odds are that you will not be an instant success, so have a plan and do your research.
And as always, write...write...and write some more!
Why 99-Cent e-Books Are a Bad Deal -- For Authors
Zoe Winters on E-book Pricing: Does Low-balling Attract the Wrong Kind of Reader?
99¢ ebooks Good or Bad For Us???
Proof that .99 is a good price...Six books are in the top 20 Of The Best Sellers in Kindle Store and they are .99.