Pricing something high can actually increase sales. There is an example in Cialdini's book "Influence", near the beginning of chapter 1. A jewelry store owner was trying to get rid of some items, instead of marking the price down, she marked them up (by a factor of 2), and they were rapidly gone.

It is a nice book to read, and will probably make you feel uneasy when you realize the abundance of manipulation tactics around us.