If your selling cookie cutter bullshit then do what ya gotta do to make the sale. If your combining niche, quality, updates etc... an occasional sale may be okay but no need to whore out when the quality is there.
Back in 2003 when I started a small web hosting company I was faced with $2.99, $3.99 etc... competitors and I choose to say fuck them and stick to my guns on pricing. I may have had less customers than them but less customers at a higher price point equals out and less customer support was needed further reducing operational costs.
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