"Guess what? We can make 70% on the $.99 price on Amazon. Here's what you do. Price your Amazon book at $2.99 or above, click 70% option, then go to Barnes and Noble and put your price at $.99. Amazon will match, making it look like your book is a huge deal, AND they will pay you 70% of the $.99 they sell the book for!"
Okay, before we get into why you CAN'T do this, think about it. Would Amazon really leave such a loophole open not in their favor? Probably not. And guess what? They DIDN'T. Authors who are doing this directly violate the KDP Terms and Conditions, specifically the Pricing Page (ref. in 5.3.1 of the Terms and Conditions) Provision Number 4 which states:
4. Setting Your List PriceI am seeing many authors pulling this stunt, some I once thought were ethical and smart business men and women. No longer. Your true colors are shown to me. You are not reading the clearly worded print of the agreements you have made, and you are purposely defrauding Amazon. Remember, when you self-publish, YOU are the publisher. You set your price.
You must set your Digital Book's List Price (and change it from time-to-time if necessary) so that it is no higher than the list price in any sales channel for any digital or physical edition of the Digital Book.
But if you choose the 70% Royalty Option, you must further set and adjust your List Price so that it is at least 20% below the list price in any sales channel for any physical edition of the Digital Book.
By "list price in any sales channel," we mean the suggested or recommended retail price or, if you sell your book directly to end users, your own sales price, for an edition of the book available outside of our Program.
Now if Barnes and Noble decided to discount your sales price, without your approval (which BOTH Amazon and Barnes and Noble have the right to do at any time, read your Terms and Conditions), THEN you would rightfully get 70% of the sales price when Amazon matched it. But Barnes and Noble is not mass reducing all of the indie books to $.99, and when it comes to Amazon wondering about your integrity, I doubt they err on the side of the author. I certainly wouldn't want to be banned from Amazon's KDP for violating their Terms and Conditions, which is exactly what these authors are risking. Read Section 3 of the Terms and Conditions, they can terminate or suspend you at any time, at their discretion.
********UPDATE 11/18 1:24 PM **********
A phone conversation with an Amazon KDP representative confirmed that it is against the Terms and Conditions to abuse price matching and that there is a mechanism to monitor and adjust for abuse. Authors caught abusing the price matching system would be removed. Price matching for FREE is not included in this provision as there is no royalty paid to the author. Authors may use price matching to make their book FREE on Amazon.
A robotics engineer asks his business partner to marry him, but a previous one-night stand is having his baby. CANCELLED is available on Amazon, Barnes and Noble, and Smashwords. WIP: SERVED Two never married parents fight over their toddler's upbringing and moving on with their lives, without each other;(status: outlining)