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I really think this price is too high.
A price has to be based on costs and the profit you want.

I know. But pricing has to be based on what customers want too, which differs from place to place and time to time.

Yes, experience shows the same product is priced differently in different markets.
But why so much higher in this market?

There are many rich people in this area, so a skimming price is ok and even needed, because they think only a high price means a good product.

But the market prices for other similar products are much lower.
Buyers will notice the flexibility in the price structure, and buy from other companies.

I don't think so. I think the others will have to raise their price ceiling to make customers believe that their products are as good as ours.
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