What kind of Book Do You Get for a Buck?

99-cent books, how do I love thee? Let me count the ways.
A hundred books for a hundred bucks. What a bargain for the book hound.
Or is it?
These buck books are everywhere. Amazon sends a list of their newest ones, their top sellers, their "Books [I] Might Like" based on my buying history.
I’ve gotten a few excellent reads this way, discovered new authors whom I’ve followed on to their more expensive works. I’ve also purchased my share of not-so-good books for 99 cents.
Recently, I analyzed my eBook buying habits on Amazon over the last two years--not counting textbooks. :)
**I've learned to check how long the work is before I hit "Buy." Nothing worse than paying $5 for a twenty-page story that's so-so.
**The reviews actually can be helpful. Check them out.
**I don’t like to go over five bucks unless it’s an author I know and love. If I get a free sample of an unknown and love it, I buy it.
**Publishers sometimes have better deals--specials going on, volume discounts, etc. Most authors make more on buying direct, and the publisher certainly does.
**Seven dollars is my "ouch" point. Only for my tried and true authors, or for a sample book I love som much I know it'll be worth it.
**My average per book is $3.23.

With all the e-publishing going on and the many e-readers out there, what are you willing to pay? What do you average? Do you wait for a book to go on special, or try the publisher first for a better deal?
AND—
If you set the price of your book, where do you set it? Do you raise/lower the price depending on sales?