This all depends on the type of customer. If your customers are high maintenance customers that require a lot of support, then having more customers paying less

This all depends on the type of customer. If your customers are high maintenance customers that require a lot of support, then having more customers paying less money may not be worth it. However, more customers often means more diversity so you're more protected against a few taking their business elsewhere. And then more customers might mean you have to hire more people which can affect the culture of your company. Seemingly simple decisions can run pretty deep when you think about the true cost. So it really all depends, but it's definitely not bone-headed. If you're interested, here's an article I wrote for Inc. that discusses some of these ideas: http://www.inc.com/magazine/20101101/go-ahead-raise-your-businesss-prices.html http://www.inc.com/magazine/20101101/go-ahead-raise-your-bus...