This story is interesting when the increased price is within the wallet size of the addressable market. A good example of that is coffee - I can buy a $1 cup of

This story is interesting when the increased price is within the wallet size of the addressable market. A good example of that is coffee - I can buy a $1 cup of crap or I can buy a $6 venti-bs-caramel-late from Starbucks. Wow, you've convinced me to make a 6x price purchase based on narrative, but in real terms its still six bucks and I have the money in my pocket. What seems to be missing is that you can't increase the price point of your product via better narrative without also considering what the market is able/willing to pay for it. With WP Engine we took the concept of commodity hosting (~$10-$15/m) and decided we wanted to offer a non-comoditized product with amazing narrative for $49/m. We ultimately changed that to $29/m (which is still 2-3x) because the size of the addressable market prepared to pay $59/m for that size account was slim. We make more money from selling at $29/m than we would at $59/m, and have a much healthier GPM than $10/m hosting. (I ask the same of the $20 toaster and the $400 toaster in the OP's example.) To suggest that we could keep on raising prices based on better and better narrative would be false.