Earlier quoted context omitted.
The trick is in knowing where to draw the line. We definitely felt we had "some" tracking. We had hundreds of people sign up to our newsletter. We had a couple of users that absolutely raved about the product (or as it turned out later, not about the product specifically, but the support we were providing). We asked ourselves many times: is this "too slow" or are we just being impatient?
Additionally, there is a huge difference in getting free users and getting paid users. We tried with a very low-price plan and got a lot of interest & signups. The moment we raised the prices a bit to cover hosting costs, the interest went away.
I feel like this strategy is often just delaying and magnifying a failure, but if you really believe your product is better than similarly priced products, and the hurdle was getting customers to switch, then providing aggressive price incentives for switching, then ratcheting prices to parity would probably work pretty well.