It's not your price that matters - it's where you focus your attention while getting it. You can charge $400 and be working in a market with unlimited upward potential. Likewise you can be charging $2,500 and in an inevitable tailspin.
There's no such thing as a bottom-feeder price just a bottom-feeder mentality, and that can happen at any price.
Here's something we all are guilty of and nobody can deny this. We've all seen a product or service that we said there's no way I would pay that much. Someone else can see the exact same thing and will easily buy that product or service.
It's not about just raising your prices for the sake of raising them, but how well you can convince more people than not that your prices are more than worth it.