Note that you don't want to maximize customers, you want to maximize revenue. So even if hugely undercutting your competition gets you the most customers, you m

Note that you don't want to maximize customers, you want to maximize revenue. So even if hugely undercutting your competition gets you the most customers, you may still want to raise prices. If doubling your prices doesn't produce half as many customers (e.g. because you're still undercutting your competition) then you want to double your prices to make more money. So yes, worry about scaring off potential customers with a price too low, but don't worry about scaring customers with a price that's too high, unless you scare off proportionally more than you increase the price. The way you describe it sounds like you could make way more money by raising your prices.