If you've gone for the 35% option, you'd be better raising the price to $2.99 and getting 70% of any sales.
The prices your friends are seeing are probably due to them looking at the US site whilst being in another country. In the UK we don't see the US price, but instead see the UK price converted into dollars. Amazon don't want us to be comparing prices between different countries.
You can see the US price by going through a US Proxy site.
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