We recently participated in an event that included photos taken by a professional photographer. The photos are OK and they're of my wife while she's 8 months pregnant - a pretty special time.
Unfortunately, we were only told after the event that the photos would be $125 to get the high quality digital version of the file. Right, one hundred twenty five US Dollars. I have a hard time imagining that any of her customers are going to buy more than one photo. Maybe two...but that's it. We will not buy a single one. I bet a lot of her other customers are that way. So, here's what I propose:
Simple price differentiation for professional photos
The problem is that some of her customers will pay $125 for some of the photos. And for those customers it is worth it and she makes a pretty good amount of money from it. But she is leaving some value uncaptured. We would probably pay $20 for a few of the photos of us. And some of the other people would probably pay $50 for their photos.
The classic econ 101 perspective on this is that you choose a market price and go with it. Supply and demand intersect and there you go.
Graduates of Econ 102 (or marketing 101) should get into the next layer, though: price differentiation. Price differentiation is charging different prices for the same product.