In my system for creating consumer electronics evangelists, I state that pricing must be appropriate. Lets discuss appropriate.

Consumers have an expectation range when it comes to pricing. It’s possible to adjust their range upwards through a combination of terrific marketing and evangelists. But you need to have both:

• Apple has successfully adjusted the consumer pricing expectations range (CPER) for computers. In general, people pay more for Mac computers than they do for Windows, because they feel that they are getting more value from Apple.
• TiVo, which costs more than competing DVRs from cable companies, has not been able to adjust the CPER. TiVo once had evangelists, but it did not nurture them with excellent marketing.
• Sony attempted to adjust the CPER on many categories of consumer electronics, including the PlayStation 3. Sony has neither good marketing nor evangelists. When competing video game systems cost much less, Sony maintained its high price. People’s expectations were that consoles should cost less. They communicated this to Sony by not buying the PS3 until Sony lowered the price. Once pricing got within the expectations range, customers started buying again. Most recently, Sony failed adjusting the CPER upwards with its Bravia LCD televisions, which cost significantly more than nearly all other LCD TVs. People stayed away. When pricing came down into the CPER, Bravias started to sell again.

Find the consumer pricing expectations range for your products.