Here is David Gaughran’s view on cheap ebook pricing.
I definitely think it has it’s place, whether you use it for a new book or keep your first book in your book series permanently on sale, I think those are fine marketing strategies. I would not, however, discount all of my books. I think it does give the impression that the story is not worth it. But then again, I don’t think selling a ebook for over $6 is reasonable, either. They do take money and time to make, of course, but sharing an electronic file is the least inexpensive way to share your stories and the price should reflect that.
CKBooks Publishing 