Economic theory would suggest that you price your product where it will give you the maximum amount of return or profit.
So even if increasing price might lower total number of sales the total dollar amount might actually be bigger than before.
So even if increasing price might lower total number of sales the total dollar amount might actually be bigger than before.
Prices rising are usually a sign that either input costs have risen in a way in which all parties have to deal with them, or the market is becoming less competitive somehow so incumbents can get away with higher prices.
this is where price discrimination, aka charging a different price to each customer, comes in.
By finding out the maximum a customer would be willing to pay, you can get more profit than a static price for all customers. The only thing is that another customer would not like to see themselves pay a higher price for the same good.
Coupons, apps, etc, are the modern way to get around the customers seeing the "real" price others are paying.