That make sense -- negotiating a higher wholesale price with Amazon, sometimes by raising your retail price cause of Amazon's fixed discount -- but is not what the publisher quoted appears to be talking about.
Again, "so that the price will then appear closer to what you need it to be?"" -- he's saying he cares what the retail price shown to customers is. That because Amazon is going to sell at less than his marked retail price, he's going to raise the marked retail price, to raise the price that appears to customers.
There might be a reason that matters to his business, but it's definitely not obvious, I wish he'd tell us what it was. He just doesn't want his product to look like it's a cheap bargain product?