Incredibly in some cases this increases value, because it creates a product that is narrowly specialized and fulfills very specific need. People with that need would rather buy a product that does exactly what they need instead of something that also does it. Specialization and a higher price point serve as indicators of higher quality, and through that - a higher value.
Tried that too. Didn't work. I was Gucci. People wanted Walmart. At one point the entire thing becomes highly illogical. For example, people knowingly choosing to buy product that is known to be of low quality and unreliable. One of my resellers back then told me "if we sell ten of those, twelve come back broken". Still, people, for some reason, continued to buy that product. This is just one example of what woke me up to the reality that price elasticity only applies to specific, and sometimes only textbook, examples.
Try removing features ;)
Incredibly in some cases this increases value, because it creates a product that is narrowly specialized and fulfills very specific need. People with that need would rather buy a product that does exactly what they need instead of something that also does it. Specialization and a higher price point serve as indicators of higher quality, and through that - a higher value.