An anecdote that may help you... One of my former employers had a product that came about sort of by accident, providing a Perl hook into a Sendmail milter int

An anecdote that may help you... One of my former employers had a product that came about sort of by accident, providing a Perl hook into a Sendmail milter interface. It wasn't vastly better than a few open source CPAN modules, daemonized. Management found that it was taking time away from all the really cool geeky stuff we wanted to do. We, the programmers, complained loudly over and over again that at $700, this product was ludicrously overpriced. Meanwhile, out in the real world, our customers were dealing with a rising tide of spam. They were bowled over that there could be such a powerful and flexible solution that fit right into their existing mail infrastructure. It was a perfect match for big institutions like universities. The problem was that they wouldn't even consider a $700 product. This is more than just institutional prejudice. At $700 a pop, they knew that we weren't putting any effort into this product. We wouldn't be there to expand for their needs, or respond quickly. Everything changed when we started charging thousands of dollars. This product soon outstripped all others in revenue. It saved the company, gained us reliable customers, and led to an acquisition. Nowadays it's a very user-friendly system, with all sorts of GUI wizards, but at base it's just an elaboration of the Milter API. So, the point here is, it is very possible to charge too little. You might be sending the wrong signal to your customers, that you aren't serious enough for the long haul. If your main product is totally secure backups that last forever, that kind of pricing signal might be important.