> There are people rich enough that there is not much difference for them between 3$ and 300$.
I used to know someone who sold beds for a while. He had a couple come into the shop and after about an hour they were still having trouble deciding between two beds. He said "Would it help if I told you that one cost UKP300 while that one costs UKP800?" "No," said the customer. "No, it wouldn't." This is why you hire marketing people.
This actually makes sense. 500 pounds is trivial in comparison to the pain associated with getting the wrong bed, and it's difficult to tell if a bed that is comfortable when you first lay on it will still be comfortable after 8-10 hours.
If the beds were functionally indistinguishable, it'd make sense to buy the cheaper one. If they're different but incomparable, then the price difference doesn't add much new information.
I think it was more about aesthetics. They wanted their bed to be perfect (that's why choosing took them so long). Since it's rare purchase 500 pounds more or less had no value in comparison to regret of getting the wrong one because it was cheaper.
Price (if not exorbitant) is often not an issue (at least for some people) when choosing items that are meant to look nice.
Some of this people own iPhone. They don't really care what the price is.
Apart from their richness they are normal people who like to buy dumb toys.
By pricing your fart app at 300$ you tap exactly into this market.
What's interesting that despite rarity of rich dumb people you may be well off with targeting them.