[melvinmt]

> You really want to charge the price that maximises your net present value.

This goes both ways. You can definitely also increase net present value by pricing higher as long as value > price. Even better would be to create segmented/dynamic pricing that would maximize value capture up and down the demand curve.

If the market pricing is apparently so inefficient that a lot of potential value on the high end isn’t being captured (in economics speak we call this the consumer surplus), then this means there is also potential for arbitrage on the high end. Clone any service and charge 4X!

[danieltillett]

Yes that is certainly another approach to take. Same service at 4x the cost so it must be better.

Probably a more useful approach to take is for the original service to do this - set up your own competitors and see where the customers go. This approach is pretty common in the non-SAAS world.