That my friend is a great question!
It's a tricky business knowing how to price your kindle book. Questions you might have going around in your head right now are: -
1. Do I go high and get 70% of the revenue hoping that I sell enough to make it worth it? (Internal voice is saying, "70% of $3 is a lot.")
2. Go low and become a best seller making only 30% ("Please let that happen")
3. Low to start then high? ("I'll get them interested.")
How on earth do you know? Well the answer is...there isn't a define pricing structure for your books. But you can determine roughly what it should be and then tweak as you go. How do you do that?
Look at what others are doing in your genre. If you work mainly in the fiction/thriller genre like me then likely you might want to price your first book low. Are you published already? If not then maybe 99cents is a good idea until you get reviews and people like your book.
Amanda Hocking still has her first Hollowlands book for free on Kindle. It's the first part of a trilogy and has been a bestseller. If you don't know her story.....where have you been! Check out here blog here http://amandahocking.blogspot.com.
JA Konrath prices his books around the $2.99 mark but he is a well known author and has been in the game for a while. He also happens to be one of my current favourite authors so go check him out.
The point is don't be greedy. You don't need to be. You are self publishing and if you book is any good people will but it and you will make money. Pricing a first book in the fiction/thriller genre for $5.99 might work for you but I doubt it. Actually I'll cry if it does but good for you. Will you sell millions of books at 99cents? Maybe, if it's any good.
I also write in the romance genre under a different name and my books sell for 99cents $3.99 and everything in the middle of that. I think romance is a hot market by the way if you haven't already worked that one out!
But I give a lot away for free. I don't have the time nor inclination to spend my days promoting myself. You do have to do some of that but I am a writer and I should write. Right?
See what works and be prepared to change and test and test and test and test. A god cover helps so does a good description. That said I have some books that have simple three line descriptions in the romance genre and they sell. Would they make more if I put a little further effort into those descriptions?
I have tried many different ways but I think ultimately it's the cover and topic of the book that makes it sell. I am not saying here don't have a description, oh no no. I am just saying do a good one but focus on the price changes to see if that makes a difference.