Interesting topic.
I just read a section of Tools of Titans by Tim Ferris. The section is from an interview w/Marc Andreesen. His response to a question, "What would you put on a billboard?"

Response, "Raise Prices"

His rationale is that too many small companies don't charge enough for a high quality product and then can't cover basic costs of marketing and sales to actually get people to buy the product.

The misconception in his mind is that companies price products low to get people to buy it and then drive volume. Yet over and over companies fail because they cannot meet basic costs of doing business.

Food for thought.