One of my favorite anecdotes about that comes from an article found here (can't remember the exact article): The author (a developer) went along with their lead

One of my favorite anecdotes about that comes from an article found here (can't remember the exact article): The author (a developer) went along with their lead salesperson on a call to MIT. After demoing the product, which normally sold for $150k, the MIT rep asked about the price. The salesperson immediately said "$1 Million" - the MIT rep chuckled and said, "Oh come on, that's ridiculous - you know we don't pay more than $650k for software." The salesperson responded, "Ok, we'll let you have it for $650k - now let's talk extras." So yes, price is a function of demand first - don't tell the customer what it's worth, let them tell you.