Well, I tried selling to the hobby market in the $150-$200 range because I figured hobbyists would be more forgiving if it didn't have advanced features. The market was completely uninterested (which may have more to do with my lack of marketing skills at the time, but I think there is still some truth that you can't immediately go for low cost when doing something like this). After reflecting on how mine turned out, I agree that the fees need to be higher. There is always room to come down later once the software is more mature.

Setting a low price puts you in the hobby market, and hobby engineers are some of the most penny-pinching people out there. They will spend weeks working on something they could buy for $30 and at the end say they saved money.

If you are selling to businesses, those problems mostly go away and you can get real money as long as you make sure you deliver stuff that works, and in the time you said you would. Having an engineer make a new board revision will easily cost more than $1000 for anything but the most trivial boards.