[patio11]

Also keep in mind if you start with $200, see zero sales and then start gradually reducing it to $20, then you basically shoot your own credibility as a merchant as the $200 -> $20 drop makes you look greedy, detached from the reality and ultimately incompetent.

I think you will find in the typically B2C sales cycle -- which is a term that makes me laugh, since it typically fits inside a browser session -- customers do not have access to the contents of your lunchbox from last Tuesday or your pricing strategy from yesterday. The only thing they see is your price, today. This is one reason that nearly everyone who starts at $200 and goes to $20 fails -- not because they "lose credibility" (no one saw the $200 price -- really, no one, the no sales problem in software is almost always caused by the marketing strategy "Put up a website and pray someone discovers it") but because charging $20 for applications communicates that the value provided by them is negligible.

(Relatedly: your competitors' pricing does not matter because your customers will probably never see it.)