This isn't wrong per se, but it doesn't feel like solid advice to me; I think it's just skipping past a lot of nuances that are really pretty important. Like:

This isn't wrong per se, but it doesn't feel like solid advice to me; I think it's just skipping past a lot of nuances that are really pretty important. Like: extracting the maximum possible money out of your customers is kind of a shitty goal for a business, as they go. It's not exactly pushed here, either, but it's not identified and discarded. There's a price point where customers will be feeling pained and possibly taken advantage of, but still recognize the value of the product to them is such that they will still pay. This is not a sweet spot, I think; it's an opportunity for your competitors. Hustling to add value instead of cutting prices is a good point, but "how do we change our product to add more value to our customers?" is a non-trivial question, though. The default gut responses are usually wrong, and end up increasing value to some customers at a cost to others; more features but severely increased complexity; sometimes broadening the potential target market at the cost of lower value (or a steeper learning curve) for the current user base. Finally: customers even in a fairly narrow niche are diverse. You may settle on pricing that works great for healthy businesses, but which will force struggling businesses to reluctantly forgo your service, even when they need it the most. A business relationship is a relationship between people or groups thereof, in the end, even if a numbers game is involved to maintain business health.