Lower prices don't always mean more sales. Raising prices can be even more effective - adding prestige to your brand and anchor prices to your strategy.
What would worry you more – a competitor that charged less or a competitor that charged a lot more?
Veblen goods contradict the law of demand. Demand for a Veblen good increases, rather than decreases, alongside increases in price.
Veblen goods (goods that increase in demand as their price goes up) might seem theoretical but they do exist. A look at a Veblen good from the real world.