Price to Penetrate. Here your goal is to penetrate the market by selling your ebooks in volume. This means you should price your product low compared to the competition. The balance here is to find a price that maximizes profits AND number of ebooks sold. Use this strategy to acquire as many customers as possible.
Some authors even price their ebooks at a loss to get a high number of customers.
Because they understand the lifetime value of a customer. An existing customer is more likely to buy from you again. This is especially true if the first product they bought was deemed by them to be of exceptional value. If you want to establish market dominance with your ebook then pricing to penetrate is a good strategy although your profit level will be low at the expense of acquiring a large number of customers. Premium pricing - price to skim.