Last year I upped the price of my B2B app from $399 to $699 (to coincide with a major new release). The end result is my revenue remained fairly stable, but I stopped getting Indian customers. This is a good thing because they required much more tech support than their US or European counterparts.

You probably crossed a common discretionary spend limit - under that amount people might not have to get explicit approval for purchases.

Could be, but the end result is that I have fewer customers who happen to pay more, and the time I spend responding to customer support emails has dropped =)