Clearly many businesses have bifurcated price points. I totally agree this can work. The question is when? If you walk into Target you can buy a pack of gum and a $1000 garden set. My point was in the context of most startups (tech primarily) its usually a bad sign in your business when very early on you see bifurcation in pricing. I've been involved in many businesses that have seen that and the ones that convinced themselves they could serve both types of customers learned the hard way that you only get to do that when you've got a solid foundation in your business of one type or another.