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It's a dilemma, Julie, one I'm struggling with myself. I just wrote a blog post about my experiences which you can read here:

In a nutshell, this is what's happened with me. In April I had Honor Bound at 99 cents. It did really well, reaching the low 1000's and getting into the Top 100 Historical Romance category which is a pretty big category. It was selling between 30 and 40 a day, sometimes over 50. The sequel, Kiss Of Ash, was priced at $2.99 and sales fluctuated between 10 and 25 per day. I decided to increase Honor Bound in May to $2.99. After Amazon stopped price matching, Honor Bound's sales slid down. And down. This last 2 weeks it's been selling 5 to 10 copies most days, sometimes less and sometimes more. So that's approximately one sixth of what I was earning when it was priced at 99 cents, roughly the break even point. The sequel, however, also suffered and sales of that dropped by half. I noticed my other books have also dipped.

So just yesterday I lowered the price of Honor Bound back to 99 cents. Putting the price at $2.99 for that 1 book was causing me to lose money across all my books.

But that's just my experience over a month or two. Others might have different experiences. Maybe I should have given it longer to see if it gained traction again, but I don't think it would have. I'm too new at this and don't have a dedicated fan base yet. I still need visibility and once Honor Bound dropped in ranking it was less visible.

Good luck with whatever you decide to do. It's an easier decision when you have more books involved, especially a series, and easier to see the effects too. I think I'm going to keep HB at $0.99, its sequel at $2.99 and if I ever write the third I might price it at $3.99 and see what happens.
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