Psst. Hey you. Want to know where there is margin a-plenty? Find the shadows of a large, expensive product.
If you can build software to create PDFs it feel like a good deal at $50 - because Adobe charges $300+ for that privilege. It wouldn't feel like a good deal if the $300 options wasn't the norm. It's the fact that there is a large mountain in whose shadow you are playing.
You want to be a cheap car - be the Mercedes C-Class. You're cheaper than S or E classes, but still a Mercedes. What a "value" it is.
Other stuff that's "cheap" when compared:
- Knock-off fashion
(purses, jeans, suits...) - Cheaper technology
(not-the-hottest mobile phones, off-brand TVs & monitors...) - No-name groceries
It may not be all that cheap, but it's cheap-by-comparison. It's the simple perception question: what is my user/buyer/client thinking of me in terms of?