1. It's already been demonstrated, that for what you get, the Waves Mercury Bundle is cheap - $44 dollars a plugin. How cheap are YOU?
2. I was kind of astounded when Ermz posted his poll about his ebook. For me, 25/30/35 USD is an acceptable price. People were lowballing the fuck out of that thing - some people saying it shouldn't be anymore than $15. How cheap are YOU?
3. Cheap product cheapens everyone's experience: the customer doesn't respect it, and after the gas has worn off, doesn't consider it worth much. The manufacturer can't afford to eat, because they've not made enough money.
4. Group-buys cheapen the whole industry. Someone like IK does a group-buy, people get a bunch of good stuff for a good price, and then for the rest of their life thinks the rest of the industry is overpriced and full of corporate whores who want to make a fast buck. Which is far from the truth in my experience.
5. It makes more sense to sell something to 3 people for $60 each, than it does to sell it to 12 people at $15 each, or even 24 people at $7.50 each. Same net profit, but less support costs, less manufacturing. Less word of mouth, true enough, but if your product is good, then it will sell itself.
At the end of the day, psychologically, people associate free or cheap with low quality - it's how we've been trained over the centuries. It's the reason we never gave our album away for free, and I firmly believe we did the right thing. If you've worked hard on something, whether it is software or music or a movie, whatever... then you deserve to set the price and try to get something for your efforts.
I'd really like to see figures from someone like Acmebargig or ValhallaDSP, and see how much they've actually sold and what their margins are, because making software is not easy and it is not cheap. I also don't believe for a second that Ongel and LePou make their extremely AWESOME plugins and give them away for free, out of the goodness of their hearts. I think they're both quite young, and have a gameplan in mind.
People wanting cheap stuff is the reason all of our shit is made in sweat shops in China or India or somewhere. Don't make software turn out the same kind of result. It's just going to be shit for everyone.