Every business and industry is drawn down this nasty path to failure.
If you weren't paying attention or didn't read the heading, the 1% comprise 1% of the population. There are products and services that only the 1% can afford. There's also the problem of the 1% not necessarily being interested in your particular product. So the 1% is not even 1%, it's far smaller. If your product breaks apart the 1% even further, you'll soon have yourself painted into a corner where the total market for what you're selling is in the single digits. You would have done better selling a half million reasonably-priced goods instead of three insanely expensive products.
If you aim high, you're aiming for a tiny target. You run a solid chance of missing. Don't aim for the knight in shining armor, stupid. Aim for his horse. You can then bludgeon the severely wounded knight to death at your leisure…